Somaxon and Procter & Gamble have entered into a copromotion agreement for Silenor (doxepin), a treatment for insomnia characterized by difficulty with sleep maintenance. Under the terms of the agreement, Somaxon and Procter & Gamble will copromote Silenor with a combined 215 sales representatives in the US market.
Procter & Gamble’s professional health care sales force will promote Silenor to targeted primary care and other high-prescribing physicians. Somaxon’s focus will be on specialists and other top-decile physicians who treat insomnia. In addition, Procter & Gamble will promote Silenor to targeted pharmacies and will provide supplemental managed care support services for Silenor. Somaxon has also granted Procter & Gamble a right of first negotiation relating to rights to develop and market Silenor as an over-the-counter medication in the United States.
“With the combined effort of both sales forces, we will target 35,000 of the highest prescribers of insomnia products as well as 25,000 pharmacies, which we believe will allow us to be highly competitive in the insomnia market,” said Richard W. Pascoe, Somaxon’s president and CEO.
Somaxon will record all sales of Silenor and will pay Procter & Gamble a combination of fixed fees and a royalty based on US net sales. Each party will be responsible for the costs of maintaining and operating its own sales force, and Somaxon is responsible for all other costs pertaining to the commercialization of Silenor. The term of the agreement runs through December 31, 2012, renewable thereafter, and Somaxon will pay Procter & Gamble a reduced royalty based on US net sales of Silenor for 1 year after the expiration of the agreement or its earlier termination under certain circumstances.
