Somaxon Inc retains exclusivity for insomnia drug till 2020: Report
Reports confirm, drug-maker Somaxon Pharmaceuticals Inc., will retain market exclusivity for its insomnia drug, till 2020. This follows settlement of separate lawsuits with the companies, Mylan Pharmaceuticals and Par Pharmaceuticals Inc.
The shares of the company closed at 26 cents on Tuesday on NASDAQ with a jump of 146 percent during extended trading. With this settlement, Mylan Pharmaceuticals Inc will get the rights to sell a generic version of the insomnia drug, 'Silenor' from 01 Jan 2020. Sale of the drug prior to this date will be approved under certain conditions for a time span of 180 days. The period is extendible to 360 days after which the company will have non-exclusive rights to sell a generic version of the drug.
According to the deal between Somaxon and Par Pharmaceuticals, the former has given rights to the company to market another copycat version of the drug Silenor. The later will be able to market its version 180 days after the sale of generic version of Silenor in US market by a third party.
Sources from Somaxon stated that the sale of Silenor which is the one and only source of revenue for the company is expected to scale a high and earn approximately 2.8 to 2.9 million dollars in revenue in the second quarter of the year.
A San Diego, California based company, which had earlier stated that it was exploring different strategic alternatives including a sale recently reported revenue earnings worth 2.7 million dollars through sale of the drug Silenor in just the first quarter of the year.
Both Somaxon and Mylan have agreed to supply commercial quantities of the drug in dosages of 3 mg and 6 mg to the company.