Somaxon Pharmaceuticals Inc. Signs With P&G To Promote Insomnia Drug

August 25, 2010, 4:19 PM

Somaxon Pharmaceuticals Inc. (Nasdaq: SOMX) announced today that Procter & Gamble (NYSE: PG) will help get their principal product Silenor off to a quicker start. Silenor has been approved by the United States Food and Drug Administration for the treatment of insomnia characterized by difficulty with sleep maintenance. It is a low-dose oral tablet taken within 30 minutes of bedtime.

An agreement has been made with San Diego based Somaxon where Procter & Gamble sales representatives will work to promote a new treatment for insomnia.  P&G reps will target primary care doctors and physicians who write a high number of prescriptions for insomnia medication according to the co-promotion deal for Silenor. Somaxon reps will focus on specialists who treat insomnia. According to a press release, the two companies orking together will have around 215 sales employees targeting Silenor to 35,000 doctors and 25,000 pharmacies in the U.S.

The agreement did not disclose financial terms, but Somaxon said it will record all sales and pay P&G a combination of royalties and fixed fees. This agreement runs through Dec. 32, 2012 and after that Somaxon will pay P&G a lower royalty. This will be based on sales for one year after the expiration date.

Another part of the agreement is that P&G will have the first chance at negotiating rights to develop and market Silenor as an over-the-counter drug in the United States.

SOMX shares closed at $4.34 today.

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Tags: drug company, Procter & Gamble, silenor, somaxon