- We believe Pozen represents a compelling valuation and catalyst play at this level.
- Despite the minor CRL issued by the FDA in April, the application is now back under review and we continue to believe PA is approved in 2014.
- Once PA is approved, we think Pozen becomes cash flow positive on an operating basis through a combination of growing royalties on both PA and Vimovo.
- Pozen is also sitting on enough cash that the company may look to do another cash-distribution to shareholders in 2015.
- We see the shares fairly-valued at $12.50.