Neurogen Corporation Announces Third Quarter 2005 Financial Results
Tuesday November 8, 7:30 am ET
BRANFORD, Conn., Nov. 8 /PRNewswire-FirstCall/ -- Neurogen Corporation (Nasdaq: NRGN - News), a drug discovery and development company, today announced financial results for the three and nine month periods ended September 30, 2005.
ADVERTISEMENT
Neurogen recognized a net loss for the third quarter of 2005 of $9.5 million, or $0.28 per share on 34.3 million weighted average shares outstanding. This compares to a net loss during the third quarter of 2004 of $4.5 million, or $0.13 per share on 34.0 million weighted average shares outstanding. The Company recognized a net loss for the nine months ended September 30, 2005 of $26.5 million, or $0.77 per share on 34.3 million weighted average shares outstanding, as compared to a net loss of $15.7 million, or $0.56 per share on 28.2 million weighted average shares outstanding, for the comparable period of 2004. The increase in net loss for the quarter and nine month period was due primarily to lower operating revenue and increased research and development expenses as discussed below.
Neurogen's total cash and marketable securities as of September 30, 2005 totaled $124.2 million and as of December 31, 2004 totaled $151.8 million.
William H. Koster, Ph.D, President and CEO said, "As we head into the final quarter of this year, I believe we're well positioned for considerable expansion of our portfolio over the remainder of 2005 and during 2006. During the third quarter, we announced Phase I, first-in-human results for our lead insomnia compound, NG2-73, and we are moving forward with compounds in preclinical development in our pain, depression, and obesity programs. Our strong balance sheet enables us to invest in these assets and the impact on our burn rate is consistent with our expectations."
Dr. Koster added, "We were very pleased with the solid results of our single rising dose study with NG2-73. The pharmacokinetics of NG2-73, coupled with the physical/chemical characteristics of the compound, provide the potential to achieve fast onset of sleep. In addition, we are currently developing formulations designed to provide optimal sleep maintenance. In follow-up Phase I studies, we're testing multiple ascending doses of NG2-73 in healthy subjects, as well as conducting a pharmacokinetic/pharmacodynamic (PK/PD) study to evaluate the sleep-inducing effects of the drug at various dosages. These data will help to establish a range of doses for planned Phase II studies."
Operating revenue for the third quarter of 2005 decreased 54% to $2.0 million from $4.2 million for the third quarter of 2004 and for the nine months ended September 30, 2005 was $5.9 million compared to $13.5 million for the comparable period of 2004. The decrease in operating revenue for the quarter and the nine month period is due primarily to lower license fees and research funding as a result of the termination in December 2004 of the Company's collaboration with sanofi-aventis to develop CRF-based drugs to treat stress-related disorders, following the merger of Sanofi-Synthelabo and Aventis Pharma.
Research and development expenses, excluding non-cash stock compensation charges, for the third quarter of 2005 increased 45% to $10.6 million from $7.3 million in the third quarter of 2004 and for the nine month period increased 14% to $28.3 million from $24.9 million in the comparable period of 2004. The increase in R&D expenses for the quarter is due mainly to continued progress in Neurogen's proprietary clinical program in insomnia and in its preclinical programs for depression and obesity.
General and administrative expenses, excluding non-cash stock compensation charges, for the third quarter of 2005 were $1.9 million, compared to $2.0 million for the same period in 2004 and for the nine month period increased to $5.9 million from $5.5 million for the comparable period of 2004.
Webcast
The Company will host a conference call and webcast to discuss third quarter results at 10:00 a.m. EST today, November 8, 2005. The webcast will be available in the Investor Relations section of neurogen.com and will be archived on the website until June 30, 2006. A replay of the call will be available after 1:00 pm EST on November 8, 2005 and accessible through the close of business, November 22, 2005. To replay the conference call, dial 888-286-8010, or for international callers, 617-801-6888, and use the pass code: 42071980.
About Neurogen Corporation
Neurogen Corporation is a drug discovery and development company focusing on small molecule drugs to improve the lives of patients suffering from disorders with significant unmet medical need, including insomnia, pain, depression, inflammation, and obesity. Neurogen has generated 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. Neurogen conducts its research and development independently and, when advantageous, collaborates with world-class pharmaceutical companies. |
