Wells Fargo Raises Price Target on Pozen Inc. (POZN), Offers Options from Future Treximet Royalty Sale

Wells Fargo is maintaining its Market Perform rating on shares of Pozen Inc. (NASDAQ: POZN) while raising its valuation range from $3.00-$3.50 to $3.50-$4.00.

The firm calls the sale of future U.S. royalties from products utilizing the MT400 technology for $75 million is a fair deal as the company will also receive 20 percent interest on royalties related to these products beginning in April of 2018.

Wells Fargo highlights three potential options that they feel would provide shareholders with the most value without undue risks, "stop all work and become a disperser of cash and future Vimovo royalty to shareholders, continue to progress PA32540 in an attempt to create more value, and with the excess cash, accelerate the PA65020 program in addition to developing PA32540. We believe management will likely choose option two."

To go inline with the recent sale, Wells Fargo is reducing its FY11 and FY12 EPS estimates from ($0.92) and ($0.53) to ($0.99) ($1.12). Total revenues for the two years is estimated to be $17 million and $7 million.

For an analyst ratings summary and ratings history on Pozen Inc. click here. For more ratings news on Pozen Inc. click here.

Shares of Pozen Inc. closed at $2.50 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Canaccord Downgrades York Space Systems (YSS) to Hold, 'Supply chain and contract timing uncertainty'
• Deutsche Bank Downgrades Netskope (NTSK) to Hold on Valuation
• EyePoint Inc. (EYPT) PT Lowered to $8 at Jefferies