Pozen More Than Doubles Its 2Q Loss on Lower Revenue and Higher Costs

-- Pain drug developer Pozen Inc. said Thursday its second-quarter loss more than doubled as revenue dropped sharply and research costs jumped.

The company lost $8.4 million, or 29 cents per share, compared with a loss of $4.1 million, or 14 cents per share, a year ago. The loss included a $1.3 million charge for stock compensation expenses. The results missed Wall Street expectations, with analysts polled by Thomson Financial expecting a narrower loss of 26 cents per share.

Revenue dropped to $886,800 from $2 million, due to an extension on the amortization period for recognition of Trexima upfront payments. Pozen is partnering on development of the drug with GlaxoSmithKline. Analysts expected revenue of $2 million.

Operating expenses jumped to $9.7 million from $6.3 million as the company invested more in research and development for its drug pipeline.

Pozen said it expects third-quarter revenue to range from $2 million to $3 million. The company also cut its full-year revenue outlook to a range of $12 million to $14 million, from a prior forecast of $26 million to $30 million. The estimate includes an expected $4 million to $6 million payment for work under its pact with AstraZeneca.

Analysts expect more modest revenue of $1.8 million in the third quarter and $9.6 million for the year.

Shares of the company fell 43 cents, or 4.1 percent, to $10.01 in morning trading on the Nasdaq. Over the past year, the stock has ranged between $5.26 and $18.62.