Neurogen Releases 2Q Financial Results

Neurogen, a drug development company focused on improved drugs for psychiatric and neurological disorders, announced financial results for the quarter ended June 30.

Stephen R. Davis, President and CEO said, "During the second quarter we continued our plan to conserve cash resources while pursuing strategic options. As previously announced, in May we suspended enrollment of new patients in our Parkinson's disease and Restless Legs Syndrome clinical trials and we have reduced our staff to those necessary to execute the pursuit of a sale of the company or our major assets."

In a release dated August 14, the company stated:

- On a GAAP basis, including non-recurring matters, Neurogen recognized a net loss attributable to common stockholders for the second quarter of 2009 of $7.5 million, or $0.11 per share as compared to a GAAP net loss attributable to common stockholders for the second quarter of 2008 of $11.8 million, or $0.28 per share. On a non-GAAP basis, excluding non-recurring charges relating to restructuring of workforce and the write down of certain assets, net loss for the second quarter of 2009 totaled $3.9 million, or $0.06 per share on 68.7 million weighted shares outstanding as compared to a non-GAAP net loss during the second quarter of 2008 of $8.5 million, or $0.20 per share on 42.1 million weighted average shares outstanding.

- Research and development expenses for the second quarter of 2009 decreased to $2.8 million from $8.0 million in the comparable period of 2008. The decrease in R&D expenses for the quarter was due primarily to decreased spending in Neurogen's clinical and preclinical drug development programs as well as the 2008 and 2009 restructuring of the company's workforce.

- General and administrative expenses for the second quarter of 2009 increased to $1.2 million from $0.8 million for the comparable period of 2008. The increase for the quarter was due primarily to the effect of a $0.35 million credit recognized in the second quarter of 2009 versus a $0.69 million credit recognized in the second quarter of 2008, in each case related to the cancellation of stock options from employees terminated in company restructurings.

- Neurogen's cash and marketable securities as of June 30, totaled $21.9 million. Total liabilities at June 30, were $11 million.

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