Somaxon secures $65M financing

Somaxon Pharmaceuticals, a US specialty pharmaceutical company focused on the in-licensing and development of proprietary product candidates for the treatment of diseases and disorders in the fields of psychiatry and neurology, has entered into a $15.0 million secured loan agreement with Oxford Finance Corp and Silicon Valley Bank and a Committed Equity Financing Facility with Kingsbridge Capital in which the latter has committed to provide up to $50.0 million of capital through the purchase of newly-issued shares of Somaxon's common stock.

"These financing arrangements provide us with access to additional funds to support our preparation activities for the commercialization of Silenor [doxepin HCl], if it is approved by the Food and Drug Administration," said David Hale, Somaxon's executive chairman and Interim chief executive. "In addition, the availability of these funds will support our financial position as we continue to move forward in discussions with a number of companies regarding a potential strategic collaboration relating to the commercialization of Silenor. We believe these transactions also provide us with the flexibility to access funding in ways that can allow us to minimize potential dilution for our stockholders," he added.