Somaxon and Dave Popp ="

Discussion in 'Procter & Gamble' started by Anonymous, Aug 5, 2011 at 1:11 PM.

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  1. Anonymous

    Anonymous Guest

    Somaxon Pharmaceuticals (Nasdaq: SOMX ) had promise -- it really did!

    It wasn't that long ago that this no-name company with its razor-thin pipeline shot to the moon when the FDA surprisingly approved its sleep-therapy drug Silenor. Expectations were high, as it seemed very likely that Somaxon would either sell itself to a larger pharmaceutical company or sell the rights to its nugget of gold, Silenor. Surprisingly, the company did neither -- instead choosing to market the drug itself in partnership with Procter & Gamble (NYSE: PG ) .

    Here we are nearly one year after the partnership with P&G, and the preliminary results look like a dismal failure. Procter doesn't have much to worry about, as it has the option to opt out of this partnership after two years while Somaxon bears almost all of the risk and cost to market Silenor. Need further proof of Somaxon's cost burden? Let’s take a glance at last night's quarterly results.