BioCentury
ARTICLE | Strategy

Neurogen chronicles

August 31, 2009 7:00 AM UTC

Neurogen Corp. (NASDAQ:NRGN), which is being acquired by Ligand Pharmaceuticals Inc. (NASDAQ:LGND) for $11 million in stock plus conditional payments worth at least $7 million, has had a long history of early clinical failures. It was valued at $65 million nearly 15 years ago and reached a high of about $700 million at the top of the genomics bubble. The company ended last week with a market cap of $14.1 million.The stock has traded below $10 per share since the fall of 2002, as a couple of compounds that reached Phase II failed to pan out. Left axis = Neurogen's year end market caps in $M (diamonds); Right axis = Neurogen's weekly stock price (line) A. 12/96 - Due to formulation issues with NGD 91-1, a GABA receptor modulator for anxiety, Neurogen says it will focus on second generation compound NGD 91-2. The compounds were partnered with Pfizer Inc. (NYSE:PFE).B. 4/97 - Says interim results of a Phase I trial in schizophrenia suggest that NGD 94-4, a dopamine D4 antagonist partnered with Schering-Plough Corp. (NYSE:SGP), may be metabolized more quickly in humans than had been expected on the basis of primate studiesC. 12/97 - Sees possible dose-limiting liver toxicity in a Phase I trial of NGD 95-1, a neuropeptide Y (NPY) receptor antagonist. The obesity compound was partnered with Pfizer.D. 2/99 - Interim analysis in a Phase I trial run by Pfizer suggests that NGD 91-2 failed to reduce anxiety significantly in a single dose modelE. 12/20/01 - Says NGD 91-3 GABA modulator to treat generalized anxiety showed a trend toward patient improvement but did not show statistical significance on the primary endpoint in a Phase IIa trial. The compound was partnered with Pfizer.F. 11/12/02 - Says NGD 97-1, a selective inverse agonist of specific GABA receptor subtypes, did not show a therapeutic effect in a Phase II trial run by partner Pfizer in Alzheimer's disease (AD)G. 1/13/04 - Says NGD 2000-1, an oral C5a antagonist, did not show therapeutic benefit in a Phase IIa trial in mild to moderate asthmaH. 6/16/04 - Stock drops $1.76 (19%) to $7.55 after NGD 2000-1 misses the primary endpoint in a Phase IIa trial for mild to moderate rheumatoid arthritis (RA)I. 7/14/08 - Suspends a Phase II/III trial of oral adipiplon to treat insomnia after the selective modulator of GABA receptor showed a higher-than-anticipated rate of unwanted next-day effects, including grogginess and amnestic events, than Ambien CR...