TOP BUY ON THE DIP:

SOMAXON; SOMX (NASDAQ):

-SILENOR APPROVED BY FDA

--53 MLN RAISED THROUGH EQUITY OFFERING,

- LAST CC: CO. ON TRACK TO LAUNCH SILENOR EARLY 2H HALF 2010

-STOCK DEEPLY UNDERVALUED AND OVERSOLD

- MARKET CURRENTLY VALUES THE CO. ABOUT 50M (100M MKT. CAP. LESS 50M CASH RAISED)

- 7/1/10 CLOSE 3,1 USD: STRONG BUY ON THIS DIP

SILENOR OPPORTUNITY:

Unique Mechanism of Action


* Silenor is a potent antagonist that appears to selectively affect histamine at the H 1 receptor without a clinically relevant impact on other neurotransmitter systems.

Significant Market Potential


· In 2008 the prescription market for the treatment of insomnia grew approximately 6% compared to 2007 to more than 60 million prescriptions.

* The insomnia market accounted for more than $2.0billion in sales in 2008.

* It is estimated that only about 20% of the 70 million people who suffer from insomnia are on prescription therapy.

* Independent third party analysis has resulted in estimated peak annual sales for Silenor exceeding $500M.

Differentiated Clinical and Safety Features

* Only non-DEA scheduled product to treat sleep maintenance insomnia.

* No clinically relevant evidence of next day residual effects.

* Not DEA scheduled; no abuse potential or risk of dependency.

* No GABA-related side effects.

Minimal Barriers to Market Entry


* Accessible market; 42,000 physicians account for 50% of all TRxs.

* Competitive promotional spend decreasing year over year.

* Fewer promoted brands.

* Sampling advantage over commonly prescribed products.

Generic Competition not a threat

* 10 mg available in capsules, impossible to divided

* 10 mg equals almost double or triple of insomnia dosage recommended 

*10 mg risks of next day effects


Comprehensive IP Protection


* Patent protected for use in insomnia through 2020.

* Formulation exclusivity with patent protected key excipient.

* Multiple new patent applications related to formulation and label.

* Next generation product in development.