Subsequent Events

12 Months Ended

Dec. 31, 2011

Subsequent Events [Abstract]

Subsequent Events

13. Subsequent Events

On February 3, 2012, the Company completed a private placement of its common stock under a Securities Purchase Agreement, dated as of January 31, 2012, by and among the Company and the Purchasers (as defined therein), pursuant to which the Company issued shares of common stock for an aggregate purchase price of $3.0 million, at a per share price of $1.01. The price of each share of common stock is based on the January 31, 2012 consolidated closing bid price of the Company's common stock on the NASDAQ Global Market of $1.01 per share. The net proceeds to the Company, after deducting expenses of less than $0.1 million, were $3.0 million. The total number of shares of common stock issued in connection with the transaction was 2,969,685.

On March 5, 2012, the Company's board of directors committed to a restructuring plan whereby the Company proposed to reduce its workforce by 43 individuals. The restructuring plan was approved in connection with the Company's plan to focus its resources on NGX-1998 development program. The Company communicated the plan to the impacted employees on March 7, 2012 with the expectation that the restructuring would be effective and completed on or about such date. The Company expects to record a cash charge for severance and other payroll related termination costs of approximately $1.6 million in the first quarter of 2012. The Company also expects that there will be an additional non-cash compensation charge related to modifications to the impacted employee's equity awards under the 2000 Stock Incentive Plan and 2007 Stock Plan, as well as charges related to excess inventory, capital equipment write-downs and other miscellaneous restructure charges that in total will be in the range of $0.5 million to $0.8 million.