Somaxon jumps on Silenor deal
Somaxon Pharmaceuticals Inc. (NASDAQ:SOMX) gained $0.97 (29%) to $4.34 on Wednesday after it granted Procter & Gamble Co. (NYSE:PG) rights to co-promote insomnia drug Silenor doxepin in the U.S. The companies expect to launch Silenor next month in the U.S., with P&G promoting the drug to targeted primary care physicians and pharmacies and Somaxon focusing on specialists.
P&G will receive a combination of fixed fees and royalties. Somaxon said it expects to pay P&G no more than 15% of net U.S. sales. Each company will be responsible for costs related to its own sales force, while Somaxon is responsible for all other commercialization costs. Silenor is a low-dose formulation of doxepin approved to treat insomnia characterized by difficulty with sleep maintenance. ...