Silenor is a low-dose (3 mg and 6 mg) oral tablet formulation of doxepin, indicated to treat insomnia characterized by difficulties with sleep maintenance.
As per the terms of the agreement, Paladin will be responsible to pay a sum of $500,000 to Somaxon and will buy 2,184,769 shares of Somaxon’s common stock for a purchase price of $5m.
Moreover, Paladin will also be responsible to pay sales-based milestone payments up to $128.5m and including tiered double-digit percentage of net sales to Somaxon, following the commercialization of Silenor in the licensed territories.
Paladin will be responsible for regulatory submissions for Silenor in the licensed territories and will have the exclusive right to commercialize Silenor in the licensed territories.
Somaxon president and CEO Richard Pascoe said this transaction helps them further their goal of maximizing the value of Silenor for their stockholders, as they estimate that the licensed territories present a very significant addition of people suffering from insomnia.
"We have also maintained rights to the product in the United States, Europe and Japan," Pascoe said.