1. Zack Perconti

2. Recent News  Faheem Hasnain recently appointed to Board of Directors Management experience at several major Biotech companies, including GlaxoSmithKline  Silenor available for prescription on Sept. 7 th, 2010  “Full-scale field promotion” of Silenor began Sept 20 th, 2010 Massive advertising initiative undertaken in conjunction with Procter & Gamble.

3. Silenor  Silenor’s release is the first major test of market success for Somaxon  However, Silenor faces stiff competition Ambien CR and Lunesta Product fills expensive niche role  Comparison with Dopexin, generic form of Silenor

4. Outlook  Partnership with Procter & Gamble could be sign of takeover However, terms of Deal weighted heavily in P&G’s favor  Large market does exist for Silenor Fills niche Lower dosage than generic Fewer side effects than major competitors  Stock price could dramatically increase if Silenor begins to establish market share.

5. Pros/Cons Pros  Potential for growth  Relatively new company – potential for buyout and merger with larger company Procter & Gamble partnership Silenor is prescription, but not a controlled substance Massive marketing initiative designed to establish market share. Cons  Small company – low market cap  Extremely volatile – 52 week range; $0.90-$10.60  “Eggs in one basket” Company focused largely on one product, Silenor OTC, generic competition Initial losses expected from advertising required to gain market share.  Stock has dropped nearly 60% since March 2010, around the date of initial announcement of Silenor  Success closely tied to that of Procter & Gamble & Silenor product. Associate Verdict: Extremely Risky, but potential for huge profits