Posts Tagged ‘Silenor Potential’

SOMX time to Buy or Sell?

Now Somaxon Pharmaceuticals, Inc’s Silenor is approved by the FDA and SOMX is planning to market the medicine. For that they issued 6million shares for a total of $49.5 million, making the total outstanding shares to 30million.  Currently SOMX is trading at $8.8 .

Now is it the right price for the share? If you are planning to sell SOMX, is it the right time to do that.

Take the case of HGSI.  On FDA approval HGSI shares moved from $3.00 to $12.00. Many were happy and sold the shares for a good profit.  That was 9 months back. Now HGSI is trading over $30.00.  Those who picked up the shares 9 months back is getting 150% profits with out much risk. Those who brought the shares before FDA approval were risking their hard earned money with out any guarantee for returns.  Those who invested after the FDA approval gained over 150% with out much risk.

Is the HGSI story going to repeat here for SOMX.   After the approval of Silenor, SOMEX jumped to $9.00 and it is still dancing around the same level.

Advantages of Silenor:

• No Abuse Potential: Unlike most of the existing insomnia drugs including Ambien and Ambien CR from SNY and Lunesta from SEPR, which are classified as Schedule IV drugs by the DEA due to the abuse potential and tolerance problems associated with them, Silenor appears to be safe, without any abuse potential and is likely to be categorized as a non-scheduled drug by the DEA.
• Sleep Onset and Sleep Maintenance Activity: Rozerem from TKPHF, an approved insomnia drug, has been classified as a non-scheduled drug. However, this drug is only approved for patients, who have difficulty in getting sleep and not for the maintenance of sleep. On the other hand, Silenor is expected to be classified as a non-scheduled insomnia drug for the maintenance of sleep.

It is said that this drug has approximately Approximately $2 billion market in the US. These are enough reasons to make your buy or sell decision. It is strange that, you were holding it when there was high risk involved, but want to sell these now.