Wow, went to pacer.gov today to check on the patent case (it costs 3 bucks to download the file). Yesterday, a 60 page opening brief was filed outlining their positions on the two patents under dispute. The briefs are far over my head as to be able to tell who has the better legal position on the subject disputes surrounding the patents. What this does tell me is that for both sides, their attorneys are very busy billing plenty of time on this case, over a drug that currently has patent exclusitivity and lost 2 million in the last quarter of sales. It's begining to look to me, like Activas is not going to settle and is in this until the court makes a decision. Why they are spending so much money on this I will never understand, as wining the right to have a 180 day exclusive to sell generic Silenor isn't worth the expense. One thing is for sure, the patent attorneys are making for more money than even what Asscoe has stole from us. What a cluster Puck this POS has become, offense intended.
Thanks for the info. I'll try to download the brief in the next few days. Your comments bolster my argument that Silenor has way more value being marketed by Watson or Mylan than a generic.
Somaxon has settlement sweeteners to offer Actavis/Watson: Europe, including all important Russia, a big target for Actavis; Japan, Australia, China, India; U.S. distribution( P & G was a mistake, Mylan or Watson can run rings around them).
BTW, Kutz keeps making the same stale arguments about low potential sales for Silenor, etc. He blatantly chooses to ignore that Somaxon has a vastly lower breakeven point and is ridiculously cheap. Fact check: Somaxon has WORLDWIDE rights to Silenor and has to date sub-licensed to Canada, South America, Africa and South Korea. Has he never heard the expression "lean and mean."
Also, if you look at gross sales vs. net sales, you will see that Silenor prescriptions are holding up, before admittedly sizable rebates and discounts(still cheaper than a full-blown sales force). And don't think that Stifel isn't pointing out to prospects that Somaxon is debt free.
"lean and mean", more like "starving and broke". Before anything happens here, besides more dilution, or further decrease in PPS, the patent suit needs to be settled or we get a win. If we are going to trial, don't expect stiff weasel to come up with anything until after a decision is in the works. Things aren't looking good here, which was obvious by the tone of the executives during the conf call. The court costs are eating up any chance to get close to break even. The cash is running low and the legal expenses are still running the meter. This is why no company wanted to touch SOMX all the way back from approval, as nobody else wants to get stuck with the legal costs in defending the patent. Obviously, any potential partner looked at the patents and realized they aren't a slam dunk. This cloud has hung over SOMX from approval and continues to this day. There is hope if the patent gets upheld to at least 2020. That is the only reason to have any hope here. Otherwise, the rest of pumping is just noise.
Sorry, there are so many pages in the docket in the case, that it is hard for me to understand that much of it. I do seem to recall that the trial date is sometime early in 2013. But, if it doesn't settle prior, these things always get delayed and delayed. The 60 page document I downloaded today, was just the opening briefs that outline the issues under dispute and the arguments on this issues from both sides. It is tedious legal disputes over the patent, such as the food effect and other such #$%$. After reading it, I can't tell which side has the better case on these issues. My personal feelings are that since the food effect was a requirment from the fda, it will be difficult for SOMX to say they invented it, since it was only studied because the FDA now requires it, and it was not required when Doxepin was originally patented as an anti-depressant. I was by accident that SOMX discovered there was a food effect for doxepin (regardless of the dose), not an invention that is patentable.
Being that SOMX has settled with Mylan under favorable terms mutually there is no real advantage or incentive to date for Actavis to make a settlement evidently and SOMX must not be willing to satisfy any attempts to make any concessions to the likes of Actavis which is only holding their case in pending litigation as hostage style leverage..... It is not unusual for settlements to take place on the opening day of trial.... And Actavis must surely be pizzed at the deal made between SOMX and it's competitor, Mylan.... All just part of the game....
Meanwhile either there will be a forced/pressed settlement near to or on trial day.....Or if case proceeds and SOMX should win a favorable ruling/finding from the court against Actavis...... SOMX will have the right to have court award them reimbursement for all legal/professional fees to be paid by Actavis the losing party..... so at the moment it seems sort of like a Mexican standoff..... and if case goes to trial..... let the dice be thrown to see who comes away as the winner.... and if it is SOMX ....then for sure pps will spike upward and start accumulation..... Oh, another possible windfall to SOMX should they win a favorable court decision is to also seek damages against Actavis if the company can show value of the company has been diminished or an acquisition has been stalled because of the litigation or if the company has to dilute equity further to raise capital to defend it's position as a direct damage to the valuation of the company in fighting Actavis's patent infringement attempts...
So, although things may not be so bright at the moment.....circumstances could change over night very quickly once in first qtr of 2013 and SOMX will be able to recoup much of their expenses/fees and addtl damages if there is no settlement....
Come on DC--"lean and mean"---LOLOLOLOL.........!
My stale arguments keep coming true so how does that make them stale. Nothing you have said has come true in over a year and a half! You will get diluted soon enough or Pascoe has an IQ of (-10)! Thats the next prediction and as stale as it is, your going to come face to face with it and to get the cash Pascoe needs--it won;t be a 5-10% dilution from what is it now 25 million outstanding?
Pascoe is ex-military---when it come to real forward looking plans for his company, he knows how to do one thing militarily----"keep his pie hole shut"--because he is sucking this blind and totally botched sales of this! And he will continue until there is nothing left!
Hi Frank. Good follow up. I did check pacer after the Markerman Hearing last week. The case docket did report that the hearing was held, but there wasn't anything filed yet in the docket as to what transpired. Obviously, both sides who where there know what happened. I imagine it takes awhile for the clerk to file a report on the hearing. If there ever is a good time to make a settlement, now would be that time. Perhaps that is why the court has delayed posting the results of the hearing in the public docket, so the parties can settle before everyone knows what went on. From what I understand, in cases like this, the Marksman Hearing is very telling/forcast as to how the judge will decide if the case goes to trial.
The question I have for you, is what do you think a settlement will mean to the buyout? Does a similiar settlement to the other generics already settled plus the Canadian approval change the value of the deal? Could SOMX back out of the deal (and pay the small penalty of 1 MM) and get a better deal from somebody else? I would think the Canadian approval and settlement with Activis, which both were not in the cards as done deals when the buyout was annouced, would change the value of the business and the appetite from other pharma cos. Could PTX have been a straw man buyer, in order to get the PPS up prior to year end, so the more recent buyers like Deerfied (who got in low), and insiders with free shares, could sell their shares for 3 bucks and pay lower taxes before the increased capital gains taxes for these 1 percenters kicked in on Jan 1?
Maybe I'm guilty of overthink, but I wouldn't be too surprised to see these crooks play such shananigans. Same stunt Al Gore and Joel Hyatt pulled in selling Current TV before Jan 1, to big oil Arabs.