1. By Yash Sameer

2.  Buy: $3.30  Sell: $7.50

3.  Somaxon Pharmaceuticals is a pharmaceutical company focused on the in-licensing, development and commercialization of proprietary products and late-stage product candidates for the treatment of diseases and disorders in the central nervous system therapeutic area.  Somaxon's lead product, Silenor, has been approved for the treatment of insomnia characterized by difficulty with sleep maintenance.  Based in San Diego, CA  Led by CEO Richard W. Pascoe

4.  52 week 0.90 - 10.60  Mkt cap: 149.61M  Shares 35.12M  Beta 3.39  Current Share price: $3.96

5.  Large potential market: It is estimated that 70 million Americans have insomnia according to the National Sleep Foundation (NSF). According to a recent Sleep in America Poll, 65% of respondents reported experiencing insomnia symptoms a few nights a week.  Strong product: Silenor is the first and only non- scheduled prescription sleep aid that is proven to provide patients with a full night's sleep, including sleep into the 7th and 8th hour.  Emerging biotech / healthcare industry  Speculation on possible buyout from various large healthcare companies such as Amgen

6.  Insomnia remains an under-diagnosed and under- treated disorder. The current market situation provides an opportunity for a product with the clinical profile of Silenor to fill an unmet need.  Earnings growth in the past year has accelerated compared to earnings growth in the past three years.  Rated at “Strong buy” by MSN analysts  Recently struck a co-promotional deal with Procter & Gamble for its insomnia treatment Pfizer.  According to IMS Health, the insomnia market accounted for more than $2 billion in sales in 2009.  Somaxon has priced its Silenor at a discount to both Lunesta and Ambien CR.

7.  Transcept Pharmaceuticals, Inc.  Stock has dropped nearly 23% in the last three months due to increased competition.  Vanda Pharmaceuticals, Inc.  Stocks have dropped 40% in the past six months  Faces increased competition from generic brands  Procter and Gamble Company  Recently started a collaborative effort with Somaxon