DOW JONES NEWSWIRES
Somaxon Pharmaceuticals Inc. (SOMX) said part of Procter &
Gamble Co.'s (PG) sales force will help sell the drug developer's
Silenor insomnia treatment to certain doctors.
Somaxon shares were up 33.5% at $4.50 in recent premarket
trading. The stock has more than tripled this year after spiking in
March when the U.S. Food and Drug Administration approved the drug
for short-term and chronic insomnia in adults and the elderly.
The companies will have a combined 215 sales representatives in
the U.S. pushing the drug. P&G's sales force will promote the
drug to "targeted primary care and other high-prescribing
physicians." Somaxon will focus on specialists.
Somaxon will pay P&G a combination of fees and royalties
based upon U.S. sales. Each company is responsible for their own
sales costs. The agreement runs through December 2012 and is
renewable. A reduced royalty will be paid for a year after the pact
expires.
Somaxon President and Chief Executive Richard W. Pascoe said the
company also is excited about the potential to team up with
P&G, which has first right of negotiation, for over-the-counter
rights to Silenor in the future.
The president of P&G's health-care unit, Thomas M. Finn,
said the move was an excellent fit with the division's current and
future business interests.
Silenor is the first product on the market for Somaxon, which
focuses on disorders of the central nervous system. In studies, the
drug improved sleep onset and maintenance as well as prevented
early-morning awakenings relative to placebo.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com