Irvine, CA-based Cortex Pharmaceuticals is joining the ever-growing list of biotech companies opting to restructure. The developer is handing out pink slips to half of its workforce, cutting executive salaries as well as research work and scrambling to raise money from a new round of deals.
Cortex has four clinical and preclinical programs for new drugs that are targeted at ADHD, sleep apnea and respiratory depression. In order to reduce its burn rate, the company will focus on two key programs, CX717 and CX1739, "which it believes will have the greatest opportunity for creation of shareholder value." Work on early, non-clinical stage programs is being significantly reduced.
"Given the current state of the capital markets, we will continue to evaluate all options for raising cash, including licensing, partnering, and other strategic options. Cortex is currently working diligently to secure several out-licensing and partnering opportunities, which if and when completed, will provide a significant infusion of capital," said Mark Varney, the president and CEO.
- check out Cortex's release