Somaxon Gamble Fails

Somaxon Pharmaceuticals (SOMX Quote) sank 2% early Tuesday after its pathological gambling drug failed to meet clinical-trial goals.

Use of the drug, dubbed nalmefene, didn't lead to a significant difference in measures of the gambling pathology when compared with a placebo after 12 weeks of treatment. Both the 20-milligram and 40-milligram dosage levels failed to reach their goals in the Phase 2/3 trial. Side effects included insomnia, nausea, dizziness and an elevation in liver enzymes, a condition associated with liver damage.

"The results of this clinical trial for nalmefene are disappointing. We will now perform a careful analysis of all of our nalmefene data and our assumptions underlying that program to determine what the next steps should be," said CEO Ken Cohen.

Cohen says the company remains focused on completing and reporting results of its fourth and final late-stage trial for Silenor, its proposed treatment for insomnia, and expects to report results later this month. Somaxon expects to file a new drug application with the Food and Drug Administration in the third quarter of 2007.

Somaxon fell 23 cents Tuesday to $13.72.