UPDATE: Ascendiant Capital Markets Initiates POZEN at Buy; Future Royalties Attractive
Ascendiant Capital Markets initiated coverage on POZEN (NASDAQ: POZN) with a Buy rating and a $8.25 price target.
Ascendiant Capital Markets noted, "Pozen has a small number of employees (32), choosing instead to outsource much of its product development with strategic partners. The Company's strategy is to also out-license the manufacturing and sale of its products, for which it receives an upfront payment and a royalty percentage of total sales, avoiding the cost of maintaining a sales and marketing infrastructure. Hence, we believe that a growing stream of royalties could be highly leveraging to future net income and EPS."
POZEN closed at $6.43 on Monday.
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