Somaxon Pharmaceuticals (SOMX)

On June 4, 2009, Somaxon (SOMX - Analyst Report) announced that is has resubmitted the new drug application (NDA) to the U.S. FDA for Silenor (doxepin) for the treatment of insomnia. Despite this good news, we struggle to see how this drug can capture enough of the insomnia market to drive Somaxon to strong profitability.

The insomnia market is dominated by generic molecules, and without an onset claim, Silenor will already lose out on approximately half the market. Plus, Somaxon is running dangerously low on cash. We estimate the current cash balance is only enough to fund operations until July 2009.

Therefore, we expect a highly dilutive (30-40%) capital raise in the next week or two. We have a Sell rating on the shares and a target price of $0.50.

Somaxon Pharmaceuticals (SOMX) : FULL ANALYST REPORT

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237 days ago
	eaton killer wrote...
	Because.
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243 days ago
	eaton wrote...
	Why have my comments with Factual Information and SEC filings been removed twice?
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245 days ago
	pennypincher wrote...
	Heavens NO!!!! If you want to go into anything and by the way I made a nice commission on xpnt bought it at 12.35 take a look at it now. The one you want is crdc I got it at 1.25 just take a look now
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