Neurogen Corporation Announces Staff Reduction
Wednesday October 2, 8:07 pm ET
BRANFORD, Conn., Oct. 2 /PRNewswire-FirstCall/ -- Neurogen Corporation (Nasdaq: NRGN - News), a leading small molecule drug discovery and development company, today announced that it has reorganized certain departments and eliminated 24 positions, representing approximately 10% of its total workforce. This move is part of Neurogen's ongoing Operational Excellence program, designed to further enhance the efficiency of the Company's drug discovery platform, reduce costs, and to more closely align the Company's investment of resources with long-term business goals.
William H. Koster, PhD, President and CEO of Neurogen, commented, "This action reflects the importance of carefully monitoring our investment of Company resources in a tough financial market. While we are in a solid position, with cash to fund over two years of our operations, we also are pursuing a course designed to give us multiple options for the longer term. The primary objective of our business plan is to provide short term tactical flexibility without sacrificing our longer term strategic plan."
Employees affected by the measures will be eligible for severance pay, continuation of benefits, and personal outplacement support.
Neurogen closed its second fiscal quarter at June 30, 2002 with $91 million in cash and marketable securities. The Company believes that its current cash balance, as supplemented by research funding pursuant to its collaborative arrangements, will be sufficient to fund its operations into at least early 2005.
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, pain, inflammatory, 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, utilize strategic collaborations 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(TM)) process and its expertise in cellular functional assays are key discriminators in the Company's ability to rapidly and cost effectively screen for active compounds during the drug discovery process. |
