RespireRx Pharmaceuticals Inc (RSPI)

[gfp927z]

Jerry, Forget what Stoll says, what Tran did, etc. In the end all that's going to matter are - 1) the RD results, and 2) Cortex's ability to raise money based on those results. The financial clock is ticking fast on Cortex, that's the limiting factor here. As things stand, Cortex can't go back to the normal PIPE route of financing without committing corporate suicide via massive dilution.

For arguments sake, let's assume the RD data is good. How much upfront money will Cortex be able to raise via an RD partnership? Let say $10 mil (although that may be generous). That buys Cortex 10 more months of existence. Looking at what else can be monetized, we have the high impacts. Let's say the tox studies go well in 2008, what can we reasonably expect in upfronts/R+D support in a high impact deal? Let's say $10 mil again, plus $6 mil/year - enough for another 10 months of existence, plus an additional 6 months/year operating capital.

See the problem? In order to keep the doors open, Cortex is forced to give up all it's assets for peanuts, and we quickly burn through those peanuts and are back to square one. And the above scenario assumes good clinical/preclinical results in both RD and the high impacts. Even in that best possible scenario, Cortex is still left with little remaining to do in-house and a long lag time to get what is remaining into the clinic.

Anyway, the failure of CX-717/ADHD has put Cortex in an extremely tough bind, since we were relying almost completely on it to provide the funding going forward.