Cortex Pharmaceuticals Inc., a small Irvine drug maker with roots in research from the University of California, Irvine, said Thursday that it cut half its workforce as part of a restructuring.
Cortex, which makes drugs to treat psychiatric and nerve system disorders, said it cut 14 staffers because of the slow economy and “continuing uncertainty in the capital markets.”
The company had 27 workers prior to the announcement.
Cortex also said that it’s cut executive salaries and reduced its research efforts in early stage, non-clinical drug programs.
The company said it was going to evaluate options for raising cash, including licensing and seeking partnerships.
Shares of Cortex fell as much as 19% in midday New York trading on the American Stock Exchange before rebounding with a market value of $12.4 million.
The company was started in the 1990s around work done by Gary Lynch, a neurosciences researcher at UC Irvine.
Early on, Cortex had high hopes for its compounds, called ampakines, to treat memory disorders and other conditions.
