DOW JONES NEWSWIRES

Pozen Inc. (POZN) earned a $10 million milestone payment from AstraZeneca PLC (AZN) as the U.S. Food and Drug Administration Monday accepted the application for its joint-ailment treatment Vimovo.

The news recently sent Pozen shares up 13.6% to $7.35 premarket.

Vimovo is a tablet combining several drugs for joint ailments like osteoarthritis and rheumatoid arthritis. It is being studied in patients at risk of ulcers associated with nonsteroidal anti-inflammatory drugs, or NSAIDs, which is one of the drugs in Vimovo's combination. About half of the 27 million U.S. osteoarthritis patients taking NSAIDs are at risk of ulcers.

The North Carolina biotech company has posted four consecutive quarters of losses.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com