Cortex Pharmaceuticals reports a net loss of $0.06 per share for the quarter ended September 30, 2009

Nov 16 2009

Cortex Pharmaceuticals, Inc. (NYSE Amex (COR)) reported a net loss applicable to common stock of $3,243,000, or $0.06 per share for the quarter ended September 30, 2009 compared with a net loss applicable to common stock of $3,148,000, or $0.07 per share for the corresponding prior year period.

Non-cash charges for the quarter ended September 30, 2009 included $1,515,000 related to the beneficial conversion feature of the Company’s Series F Convertible Preferred Stock issued in July 2009. As reported earlier, the Series F Convertible Preferred Stock was issued in a private placement to a single investor for gross proceeds of $2,000,000, after funding a related escrow for conversion payments. Non-cash stock-based compensation charges for the quarters ended September 30, 2009 and 2008 totaled approximately $199,000 and $317,000, respectively.

For the nine months ended September 30, 2009, Cortex reported a net loss applicable to common stock of $9,189,000, or $0.18 per share compared to a net loss applicable to common stock of $11,466,000, or $0.24 per share for the corresponding prior year period. Non-cash charges for the nine months ended September 30, 2009 and 2008 approximated $2,803,000 and $1,063,000, respectively.

Excluding the non-cash charges, operating results for the current year periods primarily reflect decreased clinical and preclinical development expenses. Clinical studies during the prior year for AMPAKINE® CX717 demonstrated that the compound can prevent respiratory depression induced by opiates without affecting the opiates’ pain-relieving properties. Preclinical development expenses for AMPAKINE CX1739 from the prior year periods readied the compound for Phase I clinical testing that was completed earlier in 2009. As reported, CX1739 was well tolerated and exhibited linear exposure with increasing doses. Cortex is now conducting a small, proof-of-concept clinical study with CX1739 in the U.K. in patients with moderate-to-severe sleep apnea. This study is expected to complete by the end of 2009.

Operating results for the 2009 periods also include savings resulting from the reduction in force in mid-March, along with the savings from decreased salaries for the company’s executive officers that were implemented shortly thereafter. As previously reported, Cortex reduced its spending requirements to allocate more of its resources to its clinical programs, including intravenous CX717 and oral CX1739.

Cortex continues its on-going discussions related to licensing, partnering and M&A opportunities. “These discussions continue to move in the right direction,” commented Mark A. Varney, Cortex President and CEO. “However, there can be no assurance that a transaction will be finalized from these discussions.”