Branford-based Neurogen Corp., a drug development company, said it has entered into definitive agreements for a private placement offering of exchangeable preferred stock and warrants with institutional investors for gross proceeds of $30.6 million.
Proceeds from this offering will be used for clinical development of existing product candidates and other general corporate purposes. The closing of the transaction is expected to occur in about a week.
Also, Neurogen has reduced its workforce by about 45 positions in research and administrative functions, as part of an initiative to focus resources on advancing the company’s clinical programs in insomnia, anxiety, restless legs syndrome and Parkinson’s disease.
Neurogen is providing severance and career transition assistance to employees directly affected by the reduction in force, and the company expects to incur restructuring charges, primarily associated with severance benefits, of about $2.6 million in the second and third quarters of 2008.Â
