Somaxon Pharmaceuticals Inc. (SOMX, Financial) filed Quarterly Report for the period ended 2012-06-30.
Somaxon Pharmaceuticals, Inc. has a market cap of $16.7 million; its shares were traded at around $0.35 with and P/S ratio of 1.
We recognized cost of product sales of $0.3 million and $0.7 million for the three months ended June 30, 2012 and 2011, respectively, relating to product sales with respect to which revenue was recognized. The decrease in cost of product sales expense was due to the decline in product sales as well as a reduction in personnel and related costs resulting from cost reduction initiatives we implemented in the fourth quarter of 2011. Gross profit was $2.7 million and $5.6 million for the three months ended June 30, 2012 and 2011, respectively. Expressed as a percentage of net product sales, gross margin was 91.0% and 89.4% for the three months ended June 30, 2012 and 2011, respectively.
Sales discounts and allowances totaled $3.6 million for the six months ended June 30, 2012, compared to $2.5 million for the same period in 2011. As a percentage of gross sales, the discounts and allowances were 38.8% and 22.9% for the six months ended June 30, 2012 and 2011, respectively. The increase in sales discounts as a percentage of gross product sales is primarily due to the expansion of our participation in rebate programs with managed care organizations.
We recognized cost of product sales of $0.5 million and $1.0 million for the six months ended June 30, 2012 and 2011, respectively, relating to product sales with respect to which revenue was recognized. The decrease in cost of product sales expense was due to the decline in product sales as well as a reduction in personnel and related costs resulting from cost reduction initiatives we implemented in the fourth quarter of 2011. Gross profit was $5.1 million and $7.5 million for the six months ended June 30, 2012 and 2011, respectively. Expressed as a percentage of net product sales, gross margin was 90.5% and 88.0% for the six months ended June 30, 2012 and 2011, respectively.
As of June 30, 2012, we had $7.1 million in cash and cash equivalents which consisted of cash on deposit at financial institutions, including funds invested in money market accounts. On July 24, 2012, we sold to institutional investors an aggregate of 9,422,496 shares of our common stock and warrants to purchase up to an additional 4,711,248 shares of our common stock at a combined purchase price of $0.32 per share and per warrant. The warrants have an exercise price of $0.46 per share, will be exercisable beginning six months and one day from the date of issuance and will expire on the fifth anniversary of the date they first become exercisable. The total gross proceeds from the offering were approximately $3.0 million, before deducting anticipated selling commissions and expenses of approximately $300,000. We will need to obtain additional funds to finance our operations. Actual financial results for the period of time through which our financial resources will be adequate to support our operations could vary based upon many factors, including but not limited to Silenor sales performance, the actual cost of commercial activities and any potential litigation expenses we may incur.
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Somaxon Pharmaceuticals, Inc. has a market cap of $16.7 million; its shares were traded at around $0.35 with and P/S ratio of 1.
Highlight of Business Operations:
Sales discounts and allowances totaled $1.9 million for the three months ended June 30, 2012, compared to $2.0 million for the same period in 2011. As a percentage of gross sales, the discounts and allowances were 39.9% and 24.2% for the three months ended June 30, 2012 and 2011, respectively. The increase in sales discounts as a percentage of gross product sales is primarily due to the expansion of our participation in rebate programs with managed care organizations.We recognized cost of product sales of $0.3 million and $0.7 million for the three months ended June 30, 2012 and 2011, respectively, relating to product sales with respect to which revenue was recognized. The decrease in cost of product sales expense was due to the decline in product sales as well as a reduction in personnel and related costs resulting from cost reduction initiatives we implemented in the fourth quarter of 2011. Gross profit was $2.7 million and $5.6 million for the three months ended June 30, 2012 and 2011, respectively. Expressed as a percentage of net product sales, gross margin was 91.0% and 89.4% for the three months ended June 30, 2012 and 2011, respectively.
Sales discounts and allowances totaled $3.6 million for the six months ended June 30, 2012, compared to $2.5 million for the same period in 2011. As a percentage of gross sales, the discounts and allowances were 38.8% and 22.9% for the six months ended June 30, 2012 and 2011, respectively. The increase in sales discounts as a percentage of gross product sales is primarily due to the expansion of our participation in rebate programs with managed care organizations.
We recognized cost of product sales of $0.5 million and $1.0 million for the six months ended June 30, 2012 and 2011, respectively, relating to product sales with respect to which revenue was recognized. The decrease in cost of product sales expense was due to the decline in product sales as well as a reduction in personnel and related costs resulting from cost reduction initiatives we implemented in the fourth quarter of 2011. Gross profit was $5.1 million and $7.5 million for the six months ended June 30, 2012 and 2011, respectively. Expressed as a percentage of net product sales, gross margin was 90.5% and 88.0% for the six months ended June 30, 2012 and 2011, respectively.
As of June 30, 2012, we had $7.1 million in cash and cash equivalents which consisted of cash on deposit at financial institutions, including funds invested in money market accounts. On July 24, 2012, we sold to institutional investors an aggregate of 9,422,496 shares of our common stock and warrants to purchase up to an additional 4,711,248 shares of our common stock at a combined purchase price of $0.32 per share and per warrant. The warrants have an exercise price of $0.46 per share, will be exercisable beginning six months and one day from the date of issuance and will expire on the fifth anniversary of the date they first become exercisable. The total gross proceeds from the offering were approximately $3.0 million, before deducting anticipated selling commissions and expenses of approximately $300,000. We will need to obtain additional funds to finance our operations. Actual financial results for the period of time through which our financial resources will be adequate to support our operations could vary based upon many factors, including but not limited to Silenor sales performance, the actual cost of commercial activities and any potential litigation expenses we may incur.
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