Neurogen suspends enrollment, cuts staff

Psychiatric and neurological drug developer Neurogen says it has suspended the enrollment of additional patients in its ongoing Phase II studies for Parkinson's disease and Restless Legs Syndrome, as well as eliminated half its staff. The company has retained the services of MTS Health Partners as it considers its strategic alternatives, which could include selling the company of its assets. More job cuts are on the way as part of Neurogen's planned reduction of operations.

"The actions we are taking today are a reflection of the dramatic changes that have occurred in the cost of capital for the biotech industry, particularly for clinical development stage companies," said CEO Stephen Davis."We believe over the next year the industry will continue contracting, combining and returning capital to shareholders where appropriate to reflect the economic realities of a changed landscape. Our mission is to efficiently achieve the best result for our shareholders in this new environment." Job cuts are nothing new at this company. It's been hacking away at its workforce since February 2008.

- check out Neurogen's release