POZEN Announces U.S. Rights for Treximet® to Be Acquired by Pernix Therapeutics

  POZEN Announces U.S. Rights for Treximet® to Be Acquired by Pernix
  Therapeutics

         POZEN to Receive Pernix Warrants and ROW Rights to Treximet

Business Wire

CHAPEL HILL, N.C. -- May 14, 2014

POZEN Inc. (NASDAQ: POZN),  a pharmaceutical company committed to transforming
medicine that transforms lives, today announced that GlaxoSmithKline (GSK)
will divest all of its rights to Treximet^® (sumatriptan / naproxen sodium) to
Pernix Therapeutics Holdings, Inc. (Pernix). As part of the Divestiture, GSK
will assign the Product Development and Commercialization Agreement between
POZEN and GSK to Pernix, and POZEN and Pernix will amend the agreement to
address rights of the parties and future development.

“We are very pleased that Pernix will take over the sales and marketing of
Treximet in the United States,” said Dennis L. McNamara, Sr. Vice President
and Chief Business Officer. “We look forward to working with Pernix to assist
them in growing and expanding the brand and appreciate their collaborative
approach.”

Under the amended agreement, Pernix will continue certain of GSK’s ongoing
development activities and undertake certain new activities, for which POZEN
will provide reasonable assistance. In addition, any restrictions on POZEN’s
right to develop and commercialize additional certain dosage forms of
sumatriptan / naproxen combinations outside of the United States will be
eliminated, and POZEN may seek approval for these combinations on the basis of
the approved U.S. New Drug Application (NDA).

Pernix has also granted POZEN a warrant to purchase 500,000 shares of Pernix
common stock at an exercise price equal to the closing market price on May 13,
2014. The warrants, which will be registered by Pernix with the Securities and
Exchange Commission, will be exercisable from the closing date of the
Divestiture until February 28, 2018.

The amended Agreement provides for a guaranteed quarterly minimum royalty
amount of $4 million for the calendar quarters commencing on January 1, 2015
and ending on March 31, 2018. In November 2011, POZEN entered into a Purchase
and Sale Agreement with CPPIB Credit Investments Inc. (CII), pursuant to which
it sold its right to receive future royalty payments arising from U.S. sales
of MT 400, including Treximet to CII. Under the Purchase and Sale Agreement,
POZEN will receive a twenty percent (20%) interest in any royalties received
by CII relating to the period commencing on April 1, 2018.

The transaction will become effective only upon approval of the transaction by
the U.S. Federal Trade Commission under the Hart Scott Rodino notification
program, and closing of financing by Pernix.

Webcast

POZEN will host a webcast on Wednesday, May 14, 2014 at 11:00 a.m. (ET). The
webcast can be accessed live and will be available for replay at
www.pozen.com.

About POZEN

POZEN Inc. is a small pharmaceutical company that specializes in developing
novel therapeutics for unmet medical needs and licensing those products to
other pharmaceutical companies for commercialization. By utilizing a unique
in-source model and focusing on integrated therapies, POZEN has successfully
developed and obtained FDA approval of two self-invented products. Funded by
these milestones/royalty streams, POZEN has created a portfolio of
cost-effective, evidence-based integrated aspirin therapies designed to enable
the full power of aspirin by reducing its GI damage.

POZEN is currently seeking strategic partners to help maximize the
opportunities for its portfolio assets.

The Company's common stock is traded under the symbol “POZN” on The NASDAQ
Global Market. For more detailed company information, including copies of this
and other press releases, please visit www.pozen.com.

About Treximet

Treximet was approved by the U.S. Food and Drug Administration (FDA) in April
2008 for the acute treatment of migraine attacks, with or without aura, in
adults. The product is formulated with POZEN’s patented technology of
combining a triptan with a non-steroidal anti-inflammatory drug (NSAID) and
GlaxoSmithKline’s (GSK) RT Technology™. This migraine medication contains
sumatriptan, a 5-HT1 receptor agonist that mediates vasoconstriction of the
human basilar artery and vasculature of human dura mater, which correlates
with the relief of migraine headache. It also contains naproxen, an NSAID that
inhibits the synthesis of inflammatory mediators. Therefore, sumatriptan and
naproxen contribute to the relief of migraine through pharmacologically
different mechanisms of action. As a result of this dual mechanism of action,
Treximet has been shown to provide superior sustained pain relief compared to
placebo and to both of the single mechanism of action components.

For Full Prescribing Information see www.treximet.com.

Forward-Looking Statements

Statements included in this press release that are not historical in nature
are “forward-looking statements” within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995. You should
be aware that our actual results, our ability to return value to our
stockholders, including any cash distributions, and our future prospects could
differ materially from those contained in the forward-looking statements,
which are based on current market data and research (including third party and
POZEN sponsored market studies and reports), management’s current expectations
and are subject to a number of risks and uncertainties, including, but not
limited to, our inability to further license our PA product candidates on
terms and timing acceptable to us, our failure to successfully commercialize
our product candidates; costs and delays in the development and/or FDA
approval of our product candidates, including as a result of the need to
conduct additional studies or due to issues with third-party manufacturers, or
the failure to obtain such approval of our product candidates for all expected
indications, including as a result of changes in regulatory standards or the
regulatory environment during the development period of any of our product
candidates; uncertainties in clinical trial results or the timing of such
trials, resulting in, among other things, an extension in the period over
which we recognize deferred revenue or our failure to achieve milestones that
would have provided us with revenue; our inability to maintain or enter into,
and the risks resulting from our dependence upon, collaboration or contractual
arrangements necessary for the development, manufacture, commercialization,
marketing, sales and distribution of any products, including our dependence on
AstraZeneca and Horizon for the sales and marketing of VIMOVO^®, our
dependence on Sanofi US for the sales and marketing of PA8140/PA32540 in the
United States, if approved, and our dependence on Patheon for the manufacture
of PA8140/PA32540; competitive factors; our inability to protect our patents
or proprietary rights and obtain necessary rights to third party patents and
intellectual property to operate our business; our inability to operate our
business without infringing the patents and proprietary rights of others;
general economic conditions; the failure of any products to gain market
acceptance; our inability to obtain any additional required financing;
technological changes; government regulation; changes in industry practice;
and one-time events, including those discussed herein and in our Quarterly
Report on Form 10-Q for the period ended March 31, 2014. We do not intend to
update any of these factors or to publicly announce the results of any
revisions to these forward-looking statements.

Contact:

POZEN Inc.
Bill Hodges, Chief Financial Officer
919-913-1030
or
Stephanie Bonestell Manager, Investor Relations & Public Relations
919-913-1030
 
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