Part of the deal in selling the rights to Treximet royalties is that it also sold the legal responsibilities in defending those patents. Although POZN already won the first round of patent litigation, all of the generics are appealing. This could have cost POZN another 2-3 mil in litigation costs.
So in my mind that increases the deals value to about $78 mil.
Now they are sitting on $110 mil in cash; hopefully investing that. That should mean, conservatively $5mil/yr in returns or better.
p.s. Despite being so positive long-term, I did sell 1/2 my 25k share position as I had DCA'd quite a bit when we were sitting < $2.50. But I won't close out completely. There may still be some life to this rally, giving it a couple days. If we hold $3 I'm staying in.
Also, they will partner PA and that's going to bring in another bucket of cash. The balance sheet is going to be superb by the end of 2012 with royalties set to roll in. I don't see this testing $3 as I don't think the cash will get discounted that much. It probably wants to climb more than anything else. Vimovo and PA are free. There is enough smart money following Pozen to assume that they won't take advantage of this situation.