Neurogen Corporation Announces Second Quarter 2004 Financial
2004-08-04 07:33 (New York)
Results
BRANFORD, Conn., Aug. 4 /PRNewswire-FirstCall/ -- Neurogen Corporation
(Nasdaq: NRGN), a drug discovery and development company, today announced
financial results for the three and six month periods ended June 30, 2004.
Neurogen recognized a net loss for the second quarter of 2004 of
$4.2 million, or $0.13 per share on 31.1 million weighted average shares
outstanding. This compares to a net loss during the second quarter of 2003 of
$7.8 million, or $0.44 per share on 17.7 million weighted average shares
outstanding. The Company recognized a net loss for the six months ended June
30, 2004 of $11.2 million, or $0.44 per share on 25.3 million weighted average
shares outstanding, as compared to a net loss of $15.7 million, or $0.89 per
share on 17.7 million weighted average shares outstanding, for the comparable
period of 2003. The decrease in net loss for the current quarter was due to an
increase in operating revenue during the second quarter, primarily from
Neurogen's collaboration with Merck (NYSE: MRK) to develop VR1-based drugs for
pain and other indications. The decrease in net loss per share also reflected
the impact of 14.3 million shares issued in a private placement that closed in
April 2004.
Operating revenue for the second quarter of 2004 increased to $6.1 million
from $1.6 million for the second quarter of 2003 and for the six months ended
June 30, 2004 was $9.2 million compared to $3.0 million for the comparable
period of 2003. The increase for the current quarter is due to increased
license fees, research funding, and a $3 million preclinical milestone payment
resulting from the Company's collaboration with Merck mentioned above.
Research and development expenses, excluding non-cash stock compensation
charges, for the second quarter of 2004 increased 9% to $8.8 million from
$8.1 million in the second quarter of 2003 and for the six month period
increased 10% to $17.6 million from $15.9 million in the comparable period of
2003. The increase for the current quarter was due primarily to the ramp-up of
drug discovery initiatives and continuing preclinical testing of certain drug
candidates.
General and administrative expenses, excluding non-cash stock compensation
charges, for the second quarter of 2004 increased 40% to $1.8 million,
compared to $1.3 million for the same period in 2003 and for the six month
period increased 25% to $3.5 million from $2.8 million for the comparable
period of 2003. The increase for the current quarter is due primarily to
higher compensation costs and legal expenses, as well as to consulting
expenses related to the Company's compliance with the Sarbanes-Oxley Act of
2002.
Neurogen's total cash and marketable securities as of June 30, 2004
totaled $160.6 million and as of December 31, 2003 totaled $45.9 million. In
April 2004, Neurogen received $100 million upon the closing of a private
placement of stock led by Warburg Pincus and Baker Brothers Investments.
William H. Koster, Ph.D, President and CEO said, "Second quarter this year
saw us position the Company for the future with the closing of a $100 million
private placement and progress in our alliance with Merck resulting in a
preclinical milestone payment. During the quarter we also reported that our
Phase IIa clinical trial using NGD 2000-1 for treatment of rheumatoid
arthritis (RA) did not achieve statistical significance on its primary
endpoint, but in a post hoc analysis, did produce a statistically significant
result at the highest dose tested (100 mg twice per day) using the ACR 20
scoring method. We are tabling further development of NGD 2000-1 but feel
there's enough very interesting data to continue evaluating other candidates
in our inflammation program.
"We are moving forward with five current R&D programs. With the additional
financing we're well positioned to more fully exploit our platform by
expanding and enhancing Neurogen's capacity to pursue new drugs from start to
finish. We now have greater flexibility to selectively retain rights to drug
programs which we'd like to advance into later stage development. Our goal is
to achieve a balance of partnered and wholly-owned programs that we believe
will provide the greatest value and best risk-benefit profile for our
shareholders."
Webcast
The Company will host a conference call and webcast to discuss second
quarter results at 10:30 a.m. EDT today, August 4, 2004. The webcast will be
available in the Investor Relations section of neurogen.com and
will be archived on the website until December 31, 2004. A replay of the call
will be available after 1:00 pm EDT on August 4, 2004 and accessible through
the close of business, August 31, 2004. To replay the conference call, dial
888-286-8010, or for international callers, 617-801-6888, and use the pass
code: 16468793.
About Neurogen Corporation
Neurogen Corporation targets new small molecule drugs to improve the lives
of patients suffering from disorders with significant unmet medical need,
currently: pain, inflammation, insomnia, depression, and obesity. Neurogen
continues to generate a portfolio of compelling new drug candidates through
its Accelerated Intelligent Drug Discovery (AIDD(TM)) system, its expertise in
cellular functional assays, and its depth in medicinal chemistry. The Company
conducts its drug research and clinical development independently or, on
selected programs, collaborates with world-class pharmaceutical companies to
access complementary expertise and additional resources. |
