Exhibit 99.1
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Company Contact: | | Investor Contact: |
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Roger G. Stoll, Ph.D. | | Jane Lin/ Dian Griesel, Ph.D. |
Chairman, President and CEO | | The Investor Relations Group |
Cortex Pharmaceuticals, Inc. | | 212.825.3210 |
949.727.3157 | | |
Cortex Reports First Quarter Fiscal 2005 Results
IRVINE, CA (November 15, 2004) — Cortex Pharmaceuticals, Inc. (AMEX: COR) reported a net loss of $1,511,000 ($0.05 per share) for the quarter ended September 30, 2004. This compares with a net loss of $4,319,000 ($0.24 per share) for the corresponding prior year period, which included non-cash charges of $3,844,000 related to warrants issued in the Company’s private placement of common stock in August 2003.
Operating expenses increased from $1,816,000 to $2,756,000 for the quarter ended September 30, 2004 compared to the corresponding prior year period, reflecting increased research and development expenses, including costs for Phase I clinical testing of the second generation AMPAKINE® compound, CX717.
“With the encouraging results from the Phase I studies, our plans include advancing CX717 into several pilot Phase IIa studies in selected indications in early 2005,” commented Roger G. Stoll, Ph.D., Chairman, President and Chief Executive Officer of Cortex.
Cortex Pharmaceuticals, Inc.
Cortex, located in Irvine, California, is a neuroscience company focused on novel drug therapies for neurological and psychiatric disorders. The Company is pioneering a class of proprietary pharmaceuticals called AMPAKINE compounds, which act to increase the strength of signals at connections between brain cells. The loss of these connections is thought to be responsible for memory and behavior problems in Alzheimer’s disease. Many psychiatric diseases, including schizophrenia, occur as a result of imbalances in the brain’s neurotransmitter system. These imbalances may be improved by using the AMPAKINE technology. Cortex has alliances with N.V. Organon for the treatment of schizophrenia and depression and with Les Laboratoires Servier for the development of AMPAKINE compounds to treat the neurodegenerative effects associated with aging and disease, including Mild Cognitive Impairment, Alzheimer’s disease and anxiety disorders.
Forward-Looking Statement
Note — This press release contains forward-looking statements concerning the Company’s research and development activities, clinical trials and business development plans. Actual results may differ materially, depending on a number of risk factors, including the risks that the agreements with Organon and Servier will not result in any commercial products or that any additional milestone payments will be earned by the Company; that the Company may be unable to obtain sufficient funding to develop AMPAKINE compounds for indications it wishes to retain; that the Company may be unable to arrive at additional corporate partnerships with other pharmaceutical companies for other indications on acceptable terms and therefore be required to independently fund clinical development of AMPAKINE compounds through the sale of additional equity securities or otherwise; that the Company’s proposed products may at any time be found to be unsafe or ineffective for any or all of their proposed indications; that competitors may challenge or design around the Company’s patents or develop competing technologies; and that clinical studies may at any point be suspended or take substantially longer than anticipated to complete. As discussed in the Company’s Securities and Exchange Commission filings, the Company’s proposed products will require additional research, lengthy and costly clinical testing and regulatory approval.AMPAKINE compounds are investigational drugs and have not been approved for the treatment of any disease.
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Cortex Pharmaceuticals, Inc.
Condensed Statements of Operations
(in thousands, except per share data)
(Unaudited)
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| | | Three months ended
September 30,
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| | | 2004
| | | 2003
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Research, license and grant revenues | | $ | 1,175 | | | $ | 1,337 | |
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Operating expenses: | | | | | | | | |
Research and development | | | 2,042 | | | | 1,033 | |
General and administrative | | | 664 | | | | 460 | |
Non-cash, stock compensation charges | | | 50 | | | | 323 | |
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Total operating expenses | | | 2,756 | | | | 1,816 | |
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Loss from operations | | | (1,581 | ) | | | (479 | ) |
Interest income, net | | | 70 | | | | 4 | |
Increase in fair value of common stock warrants | | | — | | | | (3,844 | ) |
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Net loss | | $ | (1,511 | ) | | $ | (4,319 | ) |
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Net loss per share, basic and diluted | | $ | (0.05 | ) | | $ | (0.24 | ) |
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Shares used in computing per share amounts | | | | | | | | |
Basic and diluted | | | 28,355 | | | | 18,321 | |
Cortex Pharmaceuticals, Inc.
Condensed Balance Sheets
(in thousands)
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| | | September 30,
2004
(Unaudited)
| | June 30,
2004
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Assets: | | | | | | |
Cash and cash equivalents | | $ | 11,414 | | $ | 9,977 |
Marketable securities | | | 8,699 | | | 12,211 |
Accounts receivable | | | 10 | | | 133 |
Other current assets | | | 254 | | | 268 |
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| | | | 20,377 | | | 22,589 |
Furniture, equipment and leasehold improvements, net | | | 337 | | | 269 |
Other assets | | | 33 | | | 33 |
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Total assets | | $ | 20,747 | | $ | 22,891 |
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Liabilities and stockholders’ equity: | | | | | | |
Current liabilities | | $ | 1,627 | | $ | 2,021 |
Non-current liabilities | | | 81 | | | 381 |
Stockholders’ equity | | | 19,039 | | | 20,489 |
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Total liabilities and stockholders’ equity | | $ | 20,747 | | $ | 22,891 |
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More information atwww.cortexpharm.com
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