Cortex first-quarter net income increases to $0.08 per share

Cortex Pharmaceuticals, Inc. (OTCBB (CORX)) reported net income of approximately $5,596,000, or $0.08 per share for the quarter ended March 31, 2010 compared with a net loss of $3,168,000, or $0.07 per share for the corresponding prior year period, with the difference reflecting revenues from the Company's March 2010 transaction with Biovail Laboratories International SRL (Biovail).

As announced, in March 2010 Cortex sold its rights to CX717 and certain other AMPAKINE compounds to Biovail as a potential treatment for respiratory depression and vaso-occlusive crises associated with sickle cell disease. The transaction with Biovail includes a purchase price of up to $10,000,000 and milestone payments of up to $15,000,000 based upon defined clinical development of the subject AMPAKINE compounds.

The Company received $9,000,000 of the $10,000,000 purchase price from Biovail upon execution of the asset purchase agreement and will receive an additional $1,000,000 upon the later of the completion of the specified transfer plan or September 25, 2010.

As a result of the Biovail transaction, Cortex retains its rights to the majority of its AMPAKINE compounds for indications that have historically been a focus of the Company's portfolio, including the treatment of neurodegenerative diseases and psychiatric disorders.

The Company's operating expenses for the quarter ended March 31, 2010 reflect costs related to the completed transaction with Biovail, nearly offset by savings from the reduction in force that the Company implemented in mid-March 2009 and the timing of clinical development expenses for AMPAKINE CX1739.

Cortex continues to conduct its proof-of-concept Phase IIa clinical study with CX1739 in patients with moderate-to-severe sleep apnea. Earlier financial constraints limited the timing of the study and related patient enrollment. The Company now anticipates receiving top-line results from this study by late summer 2010 and is preparing to initiate a Phase IIa trial with CX1739 in adults with ADHD in the next few months.

SOURCE Cortex Pharmaceuticals, Inc.