Somaxon lowers IPO price talk to $10 to $12 per share from $13 to $15

By Ted A. Knutson

Washington, Dec. 14 - Somaxon Pharmaceuticals, Inc. lowered the price talk for its planned initial public offering of common stock to $10 to $12 per share from $13 to $15 per share, according to an amendment to an S-1 registration filed with the Securities and Exchange Commission.

The number of shares remains at 5 million, and the over-allotment option continues to be 750,000 shares.

At the new price talk, proceeds would be $50 million to $60 million before the exercise of the greenshoe, down from the $65 million to $75 million under the original price talk. Net IPO proceeds would be $49.3 million to $57.0 million, down from the estimated $63.2 to $73.0 million previously.

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

Proceeds of the offering would be used to fund clinical trials for the company's three development programs, for marketing, general and administrative expenses and for other research and development expenses.

The San Diego-based company is focused on developing psychiatry and neurology drugs. Its lead product candidate, Silenor (doxepin hydrochloride), is in phase 3 clinical trials for the treatment of insomnia. Somaxon's nalmefene hydrochloride is in a phase 2 and 3 clinical trials for the treatment of pathological gambling and a phase 2 clinical trial for smoking cessation. The company is also developing a new formulation of acamprosate calcium for the treatment of certain movement disorders.

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

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