Biotechnology company Neurocrine Biosciences Inc. said Tuesday its fourth-quarter loss widened on a hefty write-off for its troubled insomnia treatment candidate indiplon.
The company lost $128 million, or $3.35 per share, compared with a loss of $14.7 million, or 39 cents per share, during the same period a year prior. Charges included a $94 million write-off and $6.9 million in severance costs in the latest period.
Revenue plunged to $532,000 from $9.4 million a year ago.
Analysts polled by Thomson Financial expected a loss of just 85 cents per share on higher revenue of $710,000.
In December, the company said it would cut about half its work force as part of a restructuring plan. Wall Street expected indiplon to make up the bulk of the company's revenue, but a high dose of the drug was denied by the Food and Drug Administration and approval of other doses have since been tied up in regulatory reviews.
Neurocrine said it is meeting with the FDA during the first quarter to discuss the drug candidate.
For the full year, the company lost $207.3 million, or $5.45 per share, compared with a loss of $107.2 million, or $2.84 per share, in 2007. Revenue sank to $1.2 million from $39.2 million.
In 2008, the company said it expects to report a loss between $75 million and $80 million.
Shares of Neurocrine fell 18 cents, or 3.5 percent, to $4.90 in after-hours trading after falling 33 cents, or 6.1 percent, to close at $5.08 during regular trading.
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