Neurogen Corporation Announces Agreements for Sale of Non-Core Assets for Combined $9 Million
Business Wire - Friday 11/14/2008 7:00 AM ET
BRANFORD, Conn.--(BUSINESS WIRE)-- Neurogen Corporation (Nasdaq: NRGN), a drug development company focused on improved drugs for psychiatric and neurological disorders, today announced it has entered into agreements to monetize some of its non-core assets including certain research facilities and its chemical library.
As part of its effort to restructure and consolidate operations, Neurogen announced that on November 13, 2008 it entered into a purchase and sale agreement to sell four of its five buildings for a purchase price of $6.0 million. Closing of the sale is subject to conditions customary for commercial real estate transactions, including a 45 day diligence period, and is expected to occur in the first quarter of 2009. The facilities being sold are subject to a mortgage loan facility the balance of which was approximately $4.7 million at September 30, 2008.
Also, on November 10, 2008, Neurogen entered into a definitive agreement with a global pharmaceutical company to sell its chemical library for $3.0 million. Payment of the proceeds from this sale is subject to customary conditions relating to delivery of the library and related information. Neurogen expects to receive the proceeds of this sale in the fourth quarter of 2008.
About Neurogen
Neurogen Corporation is a drug development company focusing on small-molecule drugs to improve the lives of patients suffering from psychiatric and neurological disorders with significant unmet medical need. Neurogen conducts its drug development independently and, when advantageous, collaborates with world-class pharmaceutical companies to access additional resources and expertise. |
