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Biotech / Medical : Neurogen (NRGN)

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To: tuck who wrote (466)6/22/2007 12:26:22 PM
From: tuck  Read Replies (1) of 523
 
>>Gotta look at the burn. The psychological overhang of that shelf creates a sell the news environment for the stock.<<

Company had ~$107 million at YE 2006, and has guided for $70 million in burn this year. So, yeah, that shelf would probably be put into use by year end. Should a catalyst move the stock, I would probably sell again, and wait for the financing to buy back in. The only catalyst I know of is data on the insomnia compound for sleep maintenance, due in the 2nd half. I wouldn't expect this to be a huge driver unless it can beat Hypnion's very good data in that metric. Certain trials may start, but I am unaware of any other data expected before year end. Anybody know differently? What have they said about partnering (i.e. any possibility of a deal on the insomnia program or obesity programs?)?

TIA & Cheers, Tuck
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