Somaxon Seeks Partner For Silenor Insomnia Drug Switch
This article was originally published in The Tan Sheet
P&G’s exit from the switch picture adds “salt to a wound left by” Somaxon’s unsuccessful prescription Silenor launch in 2010, Jeffries analysts note. Somaxon recently laid off 75% of its sales staff and drastically cut marketing to minimize its cash burn rate, which far outpaced initial sales.
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Prestige Brands acquires GlaxoSmithKline’s BC and Goody’s analgesic brands as part of $660 million deal for 17 North American OTC lines, also including Beano gas treatment, FiberChoice supplement and Sominex sleep aid.
Somaxon reconsiders its options and might sell the sleep aid Silenor, despite a “clear path” to switch OTC, after the firm’s stock fell from $10.60 per share to 42 cents per share. Procter & Gamble would have first crack at exclusive OTC marketing rights if Somaxon sells Silenor.
Somaxon Pharmaceuticals expects to make Silenor sleep aid available OTC in five to seven years.