CHAPEL HILL, N.C. – POZEN (NASDAQ: POZN) released its earnings for the first quarter of 2014 on Thursday.

The pharmaceutical company committed to transforming medicine reported net income of $2.9 million for the first quarter and expects to be profitable for the year, based upon current projections.

Reported total revenue was $7.5 million, resulting from $3 million from the amortization of the $15 million upfront fee for the licensing of PA and another $4.5 million in VIMOVO (the company’s arthritis pain reliever) royalty, which is an increase of $2.9 million in royalty revenue over the prior quarter and $3.1 million over first quarter 2013.

The company returned $1.75 per share of surplus corporate cash to stockholders in December 2013.

According to the filing, POZEN remains committed to controlling expenses and recorded a reduction of $2.6 million compared to first quarter 2013. As part of the expense control, the company said it has reduced its R&D staff and other costs, and will continue to reduce staff not required to support our ongoing business activities.

POZEN announced that its drug candidates PA8140/PA32540 (aspirin and omeprazole) delayed release tablets received a Complete Response Letter from the U.S. Food and Drug Administration, but during an inspection of the manufacturing facility of an active ingredient supplier, inspection deficiencies were found. There were no clinical or safety deficiencies noted with respect to either PA8140 or PA32540, the company pointed out in the response letter.

The company said they plan to control expenses this year while continuing to gain FDA approval for PA8140/PA32540. They also will look to transition all licensed know-how relating to PA in the United States and fulfilling all contractual obligations to Sanofi US, complete study of PA10040-102, an additional Phase 1 pharmacodynamics study, and prepare the regulatory filing document for PA product candidates in the European Union while finding partners in ex-U.S. territories.

“We have made the strategic decision not to start new development programs that are not fully funded by a partner. As a result, we have reduced our staff to 16 employees and plan to make future reductions,” as noted in the filing.

Analysts at TheStreet downgraded shares of POZEN from a “hold” rating to a “sell” rating in March. Analysts at Zacks also reiterated an “outperform” rating on shares of POZEN in March. They now have an $11 price target on the stock.

As of March 31, cash and cash equivalents totaled $27.1 million. Accounts receivable totaled $4.5 million.

POZEN stock was up to $8.50 (up 32 cents) in afterhours trading Thursday and is up 2 percent overall this year.