Somaxon Pharmaceuticals Hires Financial Advisor to Assist in Seeking Strategic Alternatives

"We are committed to working with the Stifel team to evaluate strategies which will allow us to fully leverage our rights in our core asset -- Silenor(R) for the treatment of insomnia characterized by difficulty with sleep maintenance," said Richard W. Pascoe, Somaxon's President and Chief Executive Officer. "This process will focus on strategic alternatives, which may include one or more of a sale of the company or assets relating to Silenor, or partnering or other collaboration transactions relating to U.S. or ex-U.S. prescription or over-the-counter rights to Silenor."

"While we are conducting this process, we will continue to market Silenor in the U.S. to existing prescribers through our 30-person sales force and non-personal promotion, and to protect the intellectual property position of the product," continued Pascoe. "We will also undertake measures to minimize our cash burn rate, including through a reduction in force involving approximately 60% of our current non-field-based employees."

The exploration of strategic alternatives may not result in any agreement or transaction and, if completed, any agreement or transaction may not be successful or on attractive terms. Somaxon does not intend to disclose developments with respect to this process unless and until the evaluation of strategic alternatives has been completed or it enters into a definitive agreement for a specific, material transaction.