Neurogen and Merck Agreement for Next-Generation Pain Drugs Consummated

16-Jan-2004

Neurogen Corporation announced that it has consummated its previously announced alliance with Merck & Co., Inc. to discover and develop next-generation drugs for the treatment of pain. The deal received clearance from the Federal Trade Commission under the Hart-Scott-Rodino Act and the companies have now commenced the collaboration. The alliance, announced December 1, 2003, enables Merck, through a subsidiary, and Neurogen to pool drug candidates targeting the vanilloid receptor (VR1), a key integrator of pain signals in the nervous system, and combine their ongoing VR1 programs to form a global research and development collaboration.

With consummation of the deal, Neurogen has received $30 million from Merck, including a $15 million up-front license fee payment and a $15 million equity investment in Neurogen common stock. Under the agreement, Merck has purchased shares of newly issued Neurogen common stock.

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