Neurogen, Pfizer deal

The companies agreed in principle on a third collaboration, this one to develop drugs to treat obesity and eating disorders. Pfizer will receive worldwide rights to NRGN's Neuropeptide ( NPY) Y1 antagonist, NGD 95-1, an orally active small molecule.

Pfizer will purchase 750,000 shares of NRGN at $22 per share and will pay a $3.5 million license fee. The investment restores the pharma company's equity position in the Branford, Conn., company to the 21 percent it owned prior to NRGN's third quarter follow-on offering. NRGN has 13 million shares outstanding prior to the deal. ...