The Procter & Gamble Company (PG): Can’t Sleep? Don’t Worry, You’re Not Alone

Page 1 of 2

The Procter & Gamble Company (NYSE:PG)Blame it on a “case of the Mondays” or perhaps a rough night out on the town, but for many of us getting a good night’s rest isn’t nearly as simple as it sounds. We get into bed and close our eyes expecting our feeling of being tired to translate into restful sleep; but for millions of Americans, getting to sleep, staying asleep, or getting quality rest simply isn’t possible.

A problem too large to push under the covers
According to the National Sleep Foundation, insomnia is the most common sleep complaint in the U.S. Coming in two forms — an acute form that usually abates after a short period of time, or a chronic version that can last for months or years — insomnia affects between 30% and 40% of the U.S. population during the year based on research by the National Center for Sleep Disorders Research.

Source: Alyssa L. Miller, Flickr.

Putting that figure into context, in a given year around 100 million people in the U.S. alone are having a hard time getting the proper amount of sleep needed to recharge their body. Without adequate rest, people exhibit a higher incidence rate of depression; run a higher risk of developing health complications; and miss more work than those with no sleep disorders.

What’s really depressing about insomnia, more so than the actual disorder itself, is just how unsuccessful many insomnia drugs have performed over the past decade.

Understandably, there are often ulterior conditions that can lead to insomnia rather than the insomnia being the dominant disorder. Being pregnant, for instance, can lead to insomnia in women. Certain medications, such as those taken for heart disease and high blood pressure, and even treatments for the common cold, can lead to loss of sleep. But, even taking that into account, the breakthroughs in sleep medication over the past decade have been severely lacking.

One disappointment after another
Take¬†Transcept Pharmaceuticals Inc (NASDAQ:TSPT)‘ Intermezzo, for example. It was approved by the Food and Drug Administration in late 2011 to treat insomnia characterized by waking up and not being able to fall back asleep. On paper, this drug should be selling like hotcakes. In Transcept Pharmaceuticals Inc (NASDAQ:TSPT)’s most recent quarter, it recognized only $500,000 in net royalty revenue from the sale of Intermezzo. However, it also spent $6.3 million with marketing partner Purdue Pharma on a direct-to-customer advertising campaign (which didn’t do very much as you can see) and resulted in negative $5.8 million in revenue. With notoriously high co-pays, Intermezzo appears down for the count.

A similar drug was approved in 2010 by the now-defunct Somaxon Pharmaceuticals known as Silenor. Targeted as a sleep maintenance drug (one designed to keep patients asleep once they fall asleep), investors had high hopes and rocketed shares of Somaxon as high as $12 per share, but hope faded quickly. Somaxon partnered with¬†The Procter & Gamble Company (NYSE:PG) shortly after Silenor’s approval, but not even its experienced marketing team could invigorate sales. Worse yet, Somaxon left the door wide open for The Procter & Gamble Company (NYSE:PG) to exit the partnership as it saw fit since it was responsible for nearly the entire burden of marketing costs. The Procter & Gamble Company (NYSE:PG) essentially worked out a “we’ll stick around if things go well, but you’re taking the heat if sales stink” type of deal.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!