Somaxon Stock Soars On FDA Approval Of Insomnia Treatment

(RTTNews) - Thursday, shares of Somaxon Pharmaceuticals Inc. (SOMX: News ) skyrocketed over 100% to touch a new intraday high of $7.98 before retracing to the current trading price of $6.55 following FDA approval of the company's amended New Drug Application for Silenor for treatment of insomnia.

The company noted that it will focus on seeking a U.S. commercial partnership, build a U.S. commercial presence and prepare to launch Silenor in the second half of 2010.

According to the American Psychiatric Association, about 70 million adult Americans are affected by insomnia. The insomnia market accounted for more than $2.0 billion in sales in 2008 despite the introduction in April 2007 of generic versions of Sanofi-Aventis (SNY)' Ambien, the market leader at that time.

Somaxon is a development stage company and has not derived any revenue from product sales to date. Silenor will be the company's first commercial drug. Somaxon estimates peak annual sales for Silenor to exceed $500 million.

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by RTT Staff Writer

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