Friday, November 7, 2008

Neurogen Q3 loss deepens; revenue zeroes after drug trial suspension

Connecticut drug developer Neurogen Corp. reported that revenue in the September quarter dropped to zero and its net loss widened compared with the year-earlier quarter.

Neurogen (Nasdaq: NRGN), a Branford-based company focused on improved drugs for psychiatric and neurological disorders, saw its loss deepen to $31.4 million in third-quarter 2008 from a loss of $7.89 million in third-quarter 2007. Revenue, meanwhile, dropped to zero compared with sales of  $7.5 million in third-quarter 2007.

In addition to announcing its financial results, Neurogen also reported it was completely abandoning its development of the drug adipiplon as a treatment for insomnia following suspension of trials in July. Instead, the company will focus its efforts on advancing the drug aplindore to treat restless leg syndrome and Parkinson’s disease, officials said. Neurogen suspended the trial of adipiplon because of a “higher-than-anticipated rate of unwanted next-day effects.” Executives believe the unintended effects stem from the bilayer tabled formulation being used in the Phase 2/3 study.

In 2007, the company reported a net loss of $55.7 million on 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.