Somaxon Pharmaceuticals: FDA Approved Sleep Aid Has Great Potential

A New York presenter believes Somaxon's (NASDAQ: SOMX, $7.43) insomnia treatment can achieve blockbuster status. Silenor has just been approved by the FDA in March, with the launch expected in Q3. Limited sleep maintenance properties and residual effects of the leading sleep aids currently on the market leave a large proportion of insomnia patients dissatisfied with the treatment. Somaxon's drug helps maintain sleep for 7-8 hours, is non-addictive, and doesn't trigger a hangover effect. The product's non-controlled status will allow faster penetration of the $2.5 billion market. The company is looking for a partner to help with Silenor commercialization. SOMX is an attractive acquisition target in the presenter's opinion. A 3-year exclusivity period originally given to Silenor may be extended to 10 years of protection.