Somaxon, CJ CheilJedang sign Silenor commercialization agreement

As per the agreement, CJ CheilJedang will commercialize Silenor and Somaxon will receive an up-front payment of $600,000.

Somaxon president and chief executive officer Richard Pascoe said, "This transaction helps us further our goal of maximizing the value of Silenor for our stockholders by selectively licensing rights to the product outside of the U.S."

CJ CheilJedang is responsible for Silenor regulatory submissions and with the approval, Somaxon is eligible to receive sales-based milestone payments as well as a royalty based on net sales of Silenor in South Korea.

CJ CheilJedang will even receive requirements for commercial quantities of Silenor in South Korea from Somaxon at a separate transfer price.