Pfizer Raises Stake In NRGN To 21%
Pfizer Inc. increased its commitment to Neurogen Corp. (NRGN), entering into a second agreement to develop central nervous system drugs. The new agreement, worth about $20 million, is to develop drugs based on GABA receptor subtypes to treat sleep disorders. The pharma company raised its equity position in NRGN to 21 percent through the purchase of 1.1 million NRGN shares at $9. Pfizer will also provide $7.1 million over three years for R&D in return for worldwide licensing rights to the products developed in this agreement. Pfizer will control development. In addition to supporting all development expenses and paying royalties, Pfizer will pay milestones of $3.25 million on the first compound to come out of the program and make it through Phase III and $3 million on subsequent compounds.
NRGN has 10.1 million shares outstanding after the deal...