Somaxon Reports Strong Finish To 2010, Oppenheimer Lowers PT To $8

Oppenheimer has published a research report on Somaxon Pharmaceuticals SOMX after the company reported its strong finish to 2010.

In the report, Oppenheimer writes "On 3/3, SOMX reported 4Q10 adj. EPS of ($0.42), in line with our estimates. Importantly, revenues for 4Q10 were $1.34M, ahead of our $0.98M estimate. We anticipate that SOMX will receive the food effect patent, listable in the Orange Book, during 2Q11 and believe this should strengthen its position in ongoing litigation with generic filers. We highlight that the company has reached agreements with PBMs to place Silenor on unrestricted tier 3 formulary. We expect the expanded Silenor sales force of 250 reps to be fully online by mid-March, with the benefit felt in 2H11."

Oppenheimer maintains its Outperform rating and has lowered the price target from $12 to $8.

Somaxon Pharmaceuticals closed yesterday at $3.08.