Neurogen raises $40 million

USA-based Neurogen has entered into definitive purchase agreements with selected institutional investors to buy $40.0 million of its common stock in a registered direct offering. Under the terms of the offering, Neurogen will sell 6,993,000 shares at a price of $5.72 each, the Nasdaq closing price on December 18, the date of pricing for the offering. Net proceeds, following the payment of expenses, are expected to be approximately $37.3 million.

The funds will be used for clinical and preclinical development of existing product candidates, discovery of additional product candidates, capital expenditures and other general corporate purposes, the company said.