Neurogen Corp. stock jumped 73 percent on Friday afterRobertson, Stephens & Co. analyst Mark Simon initiatedcoverage with a "strong buy" recommendation. "We wouldaggressively buy the stock up to $15 per share," he wrote.
Stock of the Branford, Conn., developer of drugs to treatpsychiatric and neurological disorders (NASDAQ:NRGN) closedat $12.13, up $5.13.
Neurogen hopes in 1992 to begin clinical trials of its leadcompound, NGD91-1, to treat anxiety.
The company told BioWorld in August that animal studies showthe compound to be as effective as diazepam (generic forValium) and Xanax, but without side effects because itinteracts with specific receptor subtypes of the gamma-aminobutyric acid (GABA) receptor family. Diazepam and Xanaxalso work at GABA receptors, but less selectively.
"NRGN's edge is its unique and in-depth understanding of theGABA receptor ... subtypes," wrote Simon. -- Karen Bernstein
(c) 1997 American Health Consultants. All rights reserved.