Neurogen Corporation Announces 2007 Financial Results
Monday March 17, 6:00 am ET
BRANFORD, Conn.--(BUSINESS WIRE)--Neurogen Corporation (Nasdaq: NRGN - News), a drug discovery and development company, today announced financial results for the year and quarter ended December 31, 2007.
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Neurogen recognized a net loss for the twelve months ended December 31, 2007 of $55.7 million, or $1.33 per share on 41.9 million weighted average shares outstanding, as compared to a net loss of $53.8 million, or $1.55 per share on 34.8 million weighted average shares outstanding for fiscal 2006. For the fourth quarter of 2007 Neurogen’s net loss was $14.9 million, or $0.36 per share on 41.9 million weighted average shares outstanding. This compares to a net loss during the fourth quarter of 2006 of $16.0 million, or $0.45 per share on 35.5 million weighted average shares outstanding. Neurogen’s total cash and marketable securities as of December 31, 2007 totaled $42.6 million.
Stephen R. Davis, President and CEO said, "While 2007 marked a year of solid progress, I expect 2008 to be a year of both new exploration and the realization of important clinical results. We have recently initiated Phase 2 studies with aplindore in both Restless Legs Syndrome and Parkinson’s disease and anticipate results by the end of this year. With adipiplon, our GABA alpha-3 partial agonist, we are expanding into anxiety where we will conduct proof-of-concept studies in humans this year. Recent animal studies indicate that our selective GABA approach produces a strong anxiety relieving effect without the behavioral impairing effects seen with existing drugs. With additional opportunities to further define the clinical and commercial profile of adipiplon for insomnia in a Phase 2/3 side-by-side study with Ambien CR, and a new opportunity to explore adipiplon in schizophrenia, we look forward to further advancing the portfolio.”
Operating revenue for the twelve months ended December 31, 2007 increased to $15.4 million from $9.8 million for the comparable period of 2006. In the fourth quarter of 2007, Neurogen had no operating revenues, down from $2.1 million for the fourth quarter of 2006. The decrease in operating revenue for the quarter was due to the acceleration of revenue recognition from the completion of the research portion of Neurogen’s collaboration with Merck, which caused all revenue from the collaboration to be recognized during the first three quarters of 2007. The increase for the twelve month period was due to the accelerated recognition of all revenue from the Merck research collaboration into 2007.
Research and development expenses for the twelve month period increased to $61.0 million from $55.9 million in the comparable period of 2006 and for the fourth quarter of 2007 decreased to $12.8 million from $16.6 million in the fourth quarter of 2006. The increase for the twelve month period was due mainly to increased spending in Neurogen’s insomnia and other clinical and preclinical drug development programs over the first three quarters of 2007. The decrease in R&D expenses for the quarter was due primarily to the conclusion of two Phase 2 insomnia clinical trials and also Phase 1 testing in the Company’s obesity program.
General and administrative expenses for the twelve month period increased to $12.8 million from $11.6 million for the comparable period of 2006 and for the fourth quarter of 2007 were $2.5 million, compared to $2.7 million for the same period in 2006. The increase for the twelve month and quarter periods is due mainly to increases in legal, patent, and administrative services expenses.
Webcast
Neurogen will host a conference call and webcast to discuss fourth quarter results at 8:30 a.m. ET today, March 17, 2008. The webcast will be available in the Investor Relations section of www.neurogen.com and will also be archived there. A replay of the call will be available after 10:30 a.m. ET on March 17, 2008 and accessible through the close of business, March 24, 2008. To replay the conference call, dial 888-286-8010, or for international callers, 617-801-6888, and use the pass code: 46868549.
About Neurogen
Neurogen Corporation is a drug discovery and development company with clinical programs in insomnia, Parkinson’s disease, Restless Legs Syndrome (RLS), pain, anxiety, and schizophrenia. Neurogen focuses its small molecule drug discovery efforts on specialist care indications with great unmet medical need. Neurogen conducts its research and development independently and, when advantageous, collaborates with world-class pharmaceutical companies to access additional resources and expertise. |
