WASHINGTON -(Dow Jones)- Underwriters for Somaxon Pharmaceuticals Inc. on Wednesday set the terms of the company’s pending initial public offering at 5 million common shares with an estimated price range of $13 to $15 a share. On Oct. 7, Somaxon filed an IPO to sell up to $86.25 million in common stock but didn’t detail the terms of the offering. According to an amended Form S-1 filed with the Securities and Exchange Commission, Somaxon expects to use net proceeds from the IPO to fund clinical trials for its three development programs, for marketing, general and administrative expenses and for other research and development expenses. Morgan Stanley, JPMorgan, Piper Jaffray and Thomas Weisel Partners LLC were listed as underwriters for the offering. The underwriters have the right to purchase up to an additional 750,000 shares to cover overallotments, the filing said. Somaxon Pharmaceuticals, based in San Diego, is a specialty pharmaceutical company focused on in-licensing, developing and commercializing proprietary product candidates for the treatment of diseases and disorders in the fields of psychiatry and neurology. For the nine months ended Sept. 30, Somaxon reported a net loss of $25.9 million, widening from a loss of $6.4 million in the 2004 six-month period. The company plans to list its common stock on the Nasdaq National Market under the symbol SOMX.
