Thursday, August 28, 2008

Nasdaq notes Neurogen nearing delisting

By Mass High Tech Staff

Drug developer Neurogen Corp. was issued a delistment warning from the Nasdaq Stock Market on Tuesday, stating that its common stock failed to meet the minimum per-share price required to remain on the Nasdaq Global Market, the company stated.

Nasdaq rules require listed company shares maintain a minimum of $1 per share. The Branford, Conn.-based firm has until February 2009 to bring its stock above the minimum bid price to avoid being delisted.

Neurogen’s (Nasdaq: NRGN) stock has been below $1 per share since July 14th when the stock dropped nearly 50 percent after the company halted a pivotal trial with its insomnia drug adipiplon because of unwanted side effects. The company stated previous trials with adipiplon in a different formulation were well tolerated and it would need up to three months to examine the issue.

Neurogen is a pharmaceutical company focusing on neurological and psychiatric disorders such as Parkinson’s disease, anxiety and pain.

In 2007 the company reported a net loss of $55.7 million in revenue of $15.4 million. In April, the company announced its plans to raise $30.6 million in a private placement and cut 45 workers to focus resources on clinical development.