Pozen sells migraine drug's U.S. rights to Canada fund
(Reuters) - Pozen Inc sold its right to receive American royalties from its migraine drug to Canada's national pension fund, sending the pharmaceutical company's shares up as much as 32 percent in extended trade.
The company received $75 million for the deal and would get a fifth of any royalties received by the fund, CPPIB Credit Investments, from April 1, 2018, Pozen said in a filing.
GlaxoSmithKline holds the license to develop and market Trexmet in the United States, and Pozen has the right to develop and market a lower dose of the drug outside the country.
Under its agreement with GSK, Pozen currently receives 18 percent of the net sales of Treximet, which makes for over 80 percent of the company's total revenue.
In October, Pozen forecast full-year revenue slightly below estimates after a U.S. district court upheld the drugmaker's litigation involving several pharmaceutical companies which had filed for marketing approvals for generic versions of Treximet.
The drug, which has been receiving generic threats from companies like Par Pharmaceutical and Dr. Reddy's Laboratories, was approved in April 2008 for the acute treatment of migraine attacks in adults.
It shrinks the swollen blood vessels in the head and inhibits the enzyme responsible for pain and inflammation.
Shares of Chapel Hill, North Carolina-based Pozen, which have lost 62 percent of their value in one year, were up at $3.30 in after-market trading. They had closed at $2.50 on Wednesday on Nasdaq.
(Reporting by Kavyanjali Kaushik in Bangalore; Editing by Joyjeet Das)
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