By Yash

Sameer

Buy: $3.30 Sell: $7.50

Somaxon Pharmaceuticals is a pharmaceutical company focused on the in-licensing, development and commercialization of proprietary products and late-stage product candidates for the treatment of diseases and disorders in the central nervous system therapeutic area.

Somaxon's lead product, Silenor, has been approved for the treatment of insomnia characterized by difficulty with sleep maintenance.

Based in San Diego, CA Led by CEO Richard W. Pascoe

52 week 0.90 - 10.60 Mkt cap: 149.61M Shares 35.12M Beta 3.39 Current Share price: $3.96

Large potential market: It is estimated that 70 million Americans have insomnia according to the National Sleep Foundation (NSF). According to a recent Sleep in America Poll, 65% of respondents reported experiencing insomnia symptoms a few nights a week.

Strong product: Silenor is the first and only non-scheduled prescription sleep aid that is proven to provide patients with a full night's sleep, including sleep into the 7th and 8th hour.

Emerging biotech / healthcare industry Speculation on possible buyout from various

large healthcare companies such as Amgen

Insomnia remains an under-diagnosed and under-treated disorder. The current market situation provides an opportunity for a product with the clinical profile of Silenor to fill an unmet need.

Earnings growth in the past year has accelerated compared to earnings growth in the past three years.

Rated at “Strong buy” by MSN analysts Recently struck a co-promotional deal with Procter

& Gamble for its insomnia treatment Pfizer. According to IMS Health, the insomnia market

accounted for more than $2 billion in sales in 2009. Somaxon has priced its Silenor at a discount to

both Lunesta and Ambien CR.

Transcept Pharmaceuticals, Inc. Stock has dropped nearly 23% in the last

three months due to increased competition. Vanda Pharmaceuticals, Inc.

Stocks have dropped 40% in the past six months

Faces increased competition from generic brands

Procter and Gamble Company Recently started a collaborative effort with

Somaxon