Somaxon, P&G sales and marketing update

Somaxon granted Procter & Gamble 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. The companies will co-promote Silenor until Dec. 31, 2012, after which the deal can be renewed. Somaxon will pay P&G reduced royalties on U.S. sales of Silenor for one year after the expiration of the agreement or its earlier termination under certain circumstances. Silenor is a low-dose formulation of doxepin approved to treat insomnia characterized by difficulty with sleep maintenance. ...