Neurogen Corporation Announces Second Quarter 2002 Financial Results
BRANFORD, Conn., Aug. 8 /PRNewswire-FirstCall/ -- Neurogen Corporation (Nasdaq: NRGN - News), a leading small molecule drug discovery and development company, today announced financial results for the three and six month periods ended June 30, 2002.
Neurogen recognized a net loss for the second quarter of 2002 of $2.9 million, or $0.16 per share. This compares to a net loss of $5.7 million, or $0.33 per share, during the second quarter of 2001. The Company recognized a net loss for the six months ended June 30, 2002 of $11.4 million, or $0.65 per share, as compared to a net loss of $13.6 million, or $0.78 per share, for the comparable period of 2001. Neurogen's total cash and marketable securities as of June 30, 2002 totaled $90.7 million.
Operating revenue for the second quarter of 2002 was $8.3 million, compared to $3.2 million for the second quarter of 2001 and for the six months ended June 30, 2002 was $10.9 million compared to $5.2 million for the comparable period of 2001. The revenue increase for the current quarter is due primarily to one-time revenue recognition related to the completion, in June 2002, of the Company's Accelerated Intelligent Drug Discovery (AIDD(TM)) technology transfer agreement with Pfizer Inc.
Research and development expenses, excluding non-cash stock compensation charges, for the second quarter of 2002 increased 14% to $9.8 million from $8.7 million in the second quarter of 2001 and for the six month period increased 11% to $19.3 million from $17.3 million in the comparable period of 2001. The increase in R&D expenditures is associated with the continued discovery and development of potential drug candidates, including Neurogen's NGD 2000-1, the Company's proprietary candidate for the treatment of inflammatory disorders targeting the C5a receptor currently in Phase I clinical trials.
General and administrative expenses, excluding non-cash stock compensation charges, for the second quarter of 2002 were up 15% to $1.7 million, compared to $1.4 million for the same period in 2001 and for the six month period increased 13% to $3.7 million from $3.3 million for the comparable period of 2001. The increase is a result of additional business operations and technical services required to facilitate Neurogen's continued drug discovery and drug development activity, as well as to expand the Company's intellectual property estate.
William H. Koster, PhD, President and Chief Executive Officer of Neurogen said, "We continue to be pleased with progress in our entire clinical pipeline. Around the end of this year and the first quarter of next year, we expect important data from our portfolio of clinical candidates which will guide us in determining which programs to advance further and which new clinical programs to bring forward. These data include:
* From our partner Pfizer, initial Phase II results for NGD 97-1,
our most advanced candidate from our new approach for treating
Alzheimer's disease. This data will represent our first experience in
exploring the efficacy of this approach in humans.
* Also from our partner Pfizer, Phase I results for our novel drug to
treat insomnia, NGD 96-3. These results will give us important
information in exploring the potential commercial profile of our lead
candidate.
* From our industry-leading C5a program for the treatment of inflammatory
disorders, Phase I results for NGD 2000-1. We believe we are the first
in the world to test the concept of blocking the C5a receptor in
humans. We plan to bring multiple drug candidates forward to test this
ground-breaking approach in numerous inflammatory disorders, such as
rheumatoid arthritis, asthma, and cystic fibrosis."
Dr. Koster continued, "In addition, we continue to push forward in bringing additional candidates from both new and existing programs into clinical development."
Dr. Koster and Stephen R. Davis, Executive Vice President and Chief Business Officer, will host a conference call and webcast to discuss second quarter 2002 results at 10:00 am Eastern Time on August 8, 2002. The webcast will be available in the Investor Relations section of neurogen.com and will be archived on the website for one week following. A replay of the call will be available after 1:00 pm Eastern Time on August 8, 2002 and accessible through the close of business, August 18, 2002. To replay the conference call, dial 800-945-0830 or for international callers, 402-220-0669. No pass code is required.
About Neurogen Corp.
Neurogen Corporation (Nasdaq: NRGN - News) is a leading small molecule drug discovery and development company targeting new drug candidates to improve the lives of patients suffering from neurological, inflammatory, pain, and metabolic disorders. Neurogen has generated a portfolio of compelling new drug programs through its fully integrated drug discovery platform, successfully solving complex issues in the discovery of small molecule drugs for valuable targets. Neurogen's strategy is to advance a mix of proprietary drugs independently and, when advantageous, collaborate with world-class pharmaceutical companies during the drug development process to obtain additional resources and to access complementary expertise. Neurogen's Accelerated Intelligent Drug Discovery (AIDD) process and its expertise in cellular functional assays are key discriminators in the Company's ability to rapidly and cost-effectively identify active compounds during the drug discovery process. |
