Neurogen Corp. (Nasdaq: NRGN) is taking steps to conserve capital as it pursues strategic options. The Branford, Conn.-based drug developer is mulling the sale of the entire company or else certain assets. Neurogen has already reduced its workforce by about 50 percent and suspended enrollment of additional participants for its Phase II drug trials related to Parkinson’s disease and Restless Leg Syndrome. More jobs cuts are planned. Neurogen’s first-quarter 2009 loss narrowed to $10.8 million from $16.7 million a year earlier.
EPIX Pharmaceuticals Inc. (Nasdaq: EPIX) hired J.P. Morgan to help evaluate its strategic options. It’s also brought on Canaccord Adams to assist with the exploration of financing and capital structure alternatives. The drug developer will look into a recapitalization, the sale of one or more assets, a merger and a business combination. The Lexington, Mass.-based company said it has enough funds to operate through August 2009, if the remaining $3.2 million principal on its notes isn’t redeemed. Noteholders could redeem the notes at face value if EPIX’s shares are delisted from Nasdaq. On April 7, EPIX said it may be forced into bankruptcy if it can’t restructure its debt.
Westport, Conn.-based Patriot Capital Funding Inc. (Nasdaq: PCAP) isn’t complying with its credit facility and is in talks with lenders about relief from some terms. The specialty finance company is also reviewing financing and strategic alternatives. Debt or equity financing, acquisition and asset sales are options being considered. Due to the non-compliance, the firm’s lenders could demand accelerated payments for amounts due, or pursue other remedies, such as exercising the right to sell collateral on the facility. For the first quarter, Patriot Capital’s losses widened to $10.5 million from $3.9 million a year earlier.
Dynamic Resources Corp. hired Clayton Capital Partners Inc. to help with the possible sale of all or most of its assets. The Las Vegas-based company finds, buys and develops oil and gas properties in the United States and Canada. It holds a 20 percent working interest in the estimated 5,300 acres in Sentell Field, which is located north of Shreveport, La.