First Albany initiated coverage of Pozen (Nasdaq: POZN) with a “buy” rating on Wednesday following news that a new drug application has been accepted for review by the FDA.

Pozen stock climbed above $10 on Tuesday on news of the application’s acceptance then settled back to close at $9.57 on Wednesday.

The FDA decision means that Pozen also will receive a $20 million milestone payment from GlaxoSmithKline (NYSE: GSK), its partner in the development of the proposed migraine drug.

The application had been filed with the FDA in August. The drug, called Trexima, could be made available in 2006 if it wins FDA approval.