Vimovo Breathes Life into Pozen

As Pozen, Inc and AstraZeneca, Plc were approved today by the United States Food and Drug Administration to produce the pain drug, Vimovo. Before a decision was made, Pozen’s stocks were down; however, after Wall Street closed their stocks began to rise due to the decision.

The new drug, which was developed by Pozen, is a combination of pain and ulcer medication. It combines naproxin with esomeprazole, which is the main ingredient in AstraZeneca’s Nexium. Vimovo will be used for patients with arthritis who are at risk of developing gastric ulcers. The drug will be used for relieving symptoms of osteoarthritis, rheumatoid arthritis, and a type of spinal arthritis called ankylosing spondylitis, according to FDA spokeswoman, Elaine Gansz Bobo.

Analysts predict that Vimovo may bring in $500 million in sales in 2014. It seems there is a lot of hope surrounding this new drug as Pozen’s shares rose 21 percent at the end of the day today in extended trading on the Nasdaq Stock Market. The shares rose a total of $2.30 finishing them out with a price of $13.15. Earlier today, the stock closed out at $10.85 per share.

This new drug is a breath of life for Pozen who reported a net loss of $6.9 million last year. They received a $10 million payout from AstraZeneca in September when the FDA agreed to review the drug. They now stand to receive an additional $20 million due to the approval of the drug. More money will also be pumped their way with royalty payments based on Vimovo’s sales.