Exhibit 11.1

                             Neurogen Corporation
              Computation of Net Earnings (Loss) Per Common Share
      (in thousands, except Net Earnings (Loss) per Common Share amounts)

 
 
                                         Three Months         Three Months
                                             Ended               Ended
                                         March 31,1996       March 31,1995
                                          (Unaudited)         (Unaudited)
                                         -------------       --------------
                                                        
 Weighted average shares of                                  
   common stock outstanding                    14,020             10,084
                                                             
 Dilutive effect of:                                       
     Warrants (1)                                  43                 -
     Stock options (1)                          1,484                 -
                                           ----------         ----------  
                                                             
 Common and common                                           
   equivalent shares                           15,547             10,084
                                           ==========         ==========  
                                                             
 Net income (loss)                         $    3,610         $   (1,700)
                                           ==========         ==========  
                                                             
 Earnings (loss) per common and                              
   common equivalent shares (1)            $     0.23         $    (0.17)
                                           ==========         ==========  
 


 (1) The common stock equivalents have not been included in periods with losses
     as their inclusion would be antidilutive.