Neurogen Corporation Announces Third Quarter 2006 Financial Results
Friday November 3, 7:30 am ET
BRANFORD, Conn., Nov. 3 /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, 2006.
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Neurogen recognized a net loss for the third quarter of 2006 of $10.9 million, or $0.31 per share on 34.6 million weighted average shares outstanding. This compares to a net loss during the third quarter of 2005 of $9.5 million, or $0.28 per share on 34.3 million weighted average shares outstanding. The Company recognized a net loss for the nine months ended September 30, 2006 of $37.8 million, or $1.09 per share on 34.5 million weighted average shares outstanding, as compared to a net loss of $26.5 million, or $0.77 per share on 34.3 million weighted average shares outstanding for the comparable period of 2005.
The increase in net loss reflects the impact of increased spending in Neurogen's clinical and preclinical drug development programs. Also impacting results was the adoption on January 1, 2006 of Statement of Financial Accounting Standards 123R, "Share-based Payment" (SFAS 123R), which resulted in a non-cash operating expense of approximately $1.0 million, or an effect of approximately $ 0.03 per share for the third quarter of 2006 and of approximately $3.5 million, or an effect of approximately $0.10 per share, for the nine month period.
Neurogen's total cash and marketable securities as of September 30, 2006 totaled $79.0 million and as of December 31, 2005 totaled $115.4 million.
William H. Koster, Ph.D, President and CEO said, "As we head into the final quarter of this year, I continue to be pleased with the momentum across our portfolio of programs. Execution of our plan continues with the recently announced Phase II studies in both our wholly-owned insomnia program and in our VR1 collaboration for pain and other indications with our partner Merck. And we continue to make progress in pre-IND testing in our wholly-owned programs for depression and obesity. We are well positioned to keep this momentum going into 2007, when we'll expect key data from several programs."
Operating revenue for the third quarter of 2006 increased 6% to $2.1 million from $2.0 million for the third quarter of 2005 and for the nine months ended September 30, 2006 was $7.7 million compared to $5.9 million for the comparable period of 2005. The increase in operating revenue for the quarter and the nine month period is due primarily to revenue from the Company's collaboration with Merck to discover and develop VR1-based drugs for pain and other indications.
Research and development expenses for the third quarter of 2006 increased 12% to $11.6 million from $10.4 million in the third quarter of 2005 and for the nine month period increased to $39.2 million from $27.9 million in the comparable period of 2005. The increase in R&D expenses for the quarter and nine month periods is due mainly to increased spending in Neurogen's proprietary clinical and preclinical drug development programs and to expense related to the adoption of SFAS 123R.
General and administrative expenses for the third quarter of 2006 increased 15% to $2.6 million, compared to $2.3 million for the same period in 2005 and for the nine month period increased to $8.8 million from $7.2 million for the comparable period of 2005. The increase for the quarter and nine month periods is due mainly to increases in patent expenses, and salaries and benefits expenses, including expense related to the adoption of SFAS 123R.
Webcast
The Company will host a conference call and webcast to discuss third quarter results at 10:00 a.m. ET today, November 3, 2006. The webcast will be available in the Investor Relations section of www.neurogen.com and will be archived on the website until December 30, 2006. A replay of the call will be available after 1:00 pm ET on November 3, 2006 and accessible through the close of business, November 17, 2006. To replay the conference call, dial 888-286-8010, or for international callers, 617-801-6888, and use the pass code: 82631233.
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, 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. |
