Somaxon Pharmaceuticals files for $86.25 million initial public offering

By Ted A. Knutson

Washington, Oct. 7 - Somaxon Pharmaceuticals, Inc. filed for an $86.25 million initial public offering in an S-1 registration with the Securities and Exchange Commission.

The number of shares to be offered and the price range for the offering have not yet been determined, the company said in a news release Friday.

The San Diego-based company is focused on developing psychiatry and neurology drugs.

Its lead product candidate, Silenor (doxepin hydrochloride), is in phase III clinical trials for the treatment of insomnia. Somaxon's nalmefene hydrochloride is in a phase II/ III clinical trial for the treatment of pathological gambling and a phase II clinical trial for smoking cessation. The company is also developing a new formulation of acamprosate calcium for the treatment of certain movement disorders.

IPO proceeds are being targeted for the development of the three drugs and for general corporate purposes.

Morgan Stanley is bookrunner and lead manager, and JP Morgan is co-lead manager. Co-managers are Piper Jaffray and Thomas Weisel Partners LLC.

Somaxon had a net loss of $10.90 million for the first six months of 2005.

MPM Capital LP is the largest shareholder with 21.01 million shares for 27.0% of the pre-IPO stock. Domain Associates LLC is second with 17.45 million shares for 22.4% of the total.

Somaxon has applied to have its common stock listed on the Nasdaq National Market under the symbol "SOMX."

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