Cortex Pharmaceuticals, IRVINE

Nature of Business: Develops products for the treatment and diagnosis of age-related degenerative diseases and disorders of the brain.

Total Employees: 20

In Orange County: 20

Stock Listing in The Times: On NASDAQ as “Cortex”

Ticker Symbol: “CORX”

Friday’s Stock Close: $2.56

One-Week Change: Up $.031

Analyst Review: “You really can’t focus on revenues when looking at Cortex. Biotech companies go through a multi-year process of developing a family of drugs they feel have a large viable market. Cortex’s first program focuses on calpain inhibitors, an area in which Cortex is the acknowledged leader. Calpain inhibitors are a class of drugs that could reduce the severity of complications to stroke patients. Cortex is also launching a program to develop drugs to treat Alzheimer’s--that’s an estimated $6 billion market opportunity for which there is currently no effective treatment. Cortex recently made a deal with Alkermes Inc. that could be worth up to $26 million. Alkermes provides capital and expertise inguiding Cortex’s product through the FDA approval process. In return, Alkermes will manufacture and sell the product, and Cortex will get royalties. It’s extremely important that these little companies have partners. In the near term, Cortex will need more corporate partner agreements if the stock is going to make an immediate move. But barring announcements to fund one of their other programs, such as the Alzheimer’s, you want to wait and see if the stock hits $5. Sometimes it’s better to wait for a company’s potential to become more apparent, even if you have to pay a little higher price for the stock.”

--Kenneth Pounds, analyst, Nutmeg Securities Ltd., Westport, Conn.

SALES VS. PROFITS

Fiscal year ending June 30 June 30 June 30 3 Qtrs. 3 Qtrs. 1989 1990 1991 1991 1992 Revenue (IN THOUSANDS) $96.2 $322.9 $189.6 $164.5 $572.8 Profit (Loss) (IN MILLIONS) ($1.2) ($2.2) ($2.6) ($1.8) ($1.9)

Corporate Outlook: “Our recent agreement with Alkermes changes our financial position dramatically. The agreement finances our research of calpain-inhibitors--a family of drugs that would limit brain damage following a stroke. Currently there are no available treatments to limit the effects of a stroke, but it has been estimated that the drug would address a $1.1 billion market in the United States. We should begin human clinical testing of calpain inhibitors in 1993.”

--D. Scott Hagen, chief financial officer

RETURN ON STOCKHOLDER INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

Fiscal year ending June 30 June 30 June 30 3 Qtrs. 1989 1990 1991 1991 52-Week High N/A $0.97 $2.38 $1.56 52-Week Low N/A $0.75 $0.34 $0.34 Book Value Per Share N/A $0.19 $0.15 $0.56 Price Per Share N/A $0.94 $1.19 $1.13 Net Earnings (Loss) Per Share ($0.12) ($0.17) ($0.20) ($0.13) Price-to-Earnings Ratio N/A N/A N/A N/A Avg. Return on Investor Equity N/A N/A N/A N/A

Fiscal year ending 3 Qtrs. 1992 52-Week High $4.88 52-Week Low $0.75 Book Value Per Share $0.14 Price Per Share $2.50 Net Earnings (Loss) Per Share ($0.14) Price-to-Earnings Ratio N/A Avg. Return on Investor Equity N/A

* Cortex Pharmaceuticals sold 3.3 million shares in its initial public offering in July, 1989; net proceeds: $5.2 million.

Source: Cortex Pharmaceuticals Inc.

For more information call or write, Cortex Pharmaceuticals Inc.: 15241 Barranca Parkway, Irvine, Calif. 92718. (714) 727-3157