Chapel Hill drug company Pozen reported a wider net loss in the first quarter as revenues totaled $1.3 million, down from $4.5 million in the first quarter of 2011.

That beat the consensus of three Wall Street analysts who cover the company, who had forecast $1.26 million.

Pozen reported a net loss of $8.4 million, or 28 cents per share, for the quarter, compared to $5.7 million, or 19 cents per share, during the same period a year ago.

The company attributed the larger loss to lower royalty payments from its Treximet, a migraine medication sold by GlaxoSmithKline. Most of Pozen's revenue comes from Treximet and its Vimovo arthritis pain reliever, sold by AstraZeneca.

Pozen also said in a statement that it continues to be optimistic about positive test results for the easier-to-stomach aspirin that it is developing.

The experimental drug, PA32540, combines aspirin and a gastrointestinal medicine. The drug is aimed at helping to prevent heart disease and stroke in patients who are susceptible to aspirin-induced ulcers.

The Food and Drug Administration has suggested Pozen also seek approval for a lower dose of the product.

Pozen shares, which opened Tuesday at $6.66, were down about 8 percent in early trading Tuesday. The stock is up 57 percent this year.

A new arthritis pain medicine developed by a small Chapel Hill company is starting to get some major marketing.

The U.S. Food and Drug Administration approved Vimovo in late April. The drug was developed by researchers at Pozen, founded in 1996 by CEO John Plachetka, a former Glaxo executive.

Pozen's larger partner AstraZeneca, which is marketing Vimovo and will keep most of the drug's revenue, began promoting the drug in September.

That effort now includes advertising in print media, including a two-page ad in the News & Observer on Friday. AstraZeneca spokeswoman Sandra Heinig said she couldn't comment on specifics of the promotional efforts for competitive reasons but that the ads also are running in other newspapers.

Shares of Pozen rose today after European regulators approved the Chapel Hill company's arthritis pain treatment.

Pozen and partner AstraZeneca won U.S. approval for the Vimovo drug in April. Winning European Union approval allows the companies to sell the medicine in 23 new countries.

Pozen officials expect AstraZeneca will begin selling Vimovo in Europe early next year. "This is a very big step," said chief commercial officer Elizabeth Cermak.

Today was a $20 million payday for Pozen.

The Chapel Hill drug company announced that it received a $20 million milestone payment from partner AstraZeneca. The money was tied to the Food and Drug Administration's approval of the companies' new arthritis medicine on April 30.

Next up is a $25 million payment for winning government approval in a major foreign market, which could happen later this year. Pozen also stands receive up to $260 million for achieving sales performance milestones.

The drug, known as Vimovo, is Pozen's second product approved for sale to patients. It also developed Treximet, a migraine drug sold by partner GlaxoSmithKline.

Pozen shares closed at $7.57, down 25 cents. The stock is down 37 percent since Vimovo won FDA approval. suggesting that Wall Street followed the adage of "buy on the rumor, sell on the news."