CoCensys to Spin Off Research Company

IRVINE — CoCensys Inc.’s board approved a plan to form and spin off a new company, Cytovia Inc., that will focus on development of a patented drug screening technology that uses living cells.

CoCensys said it plans to retain a “substantial” equity stake in Cytovia. CoCensys said it will provide short-term loans for the Cytovia start-up. Longer-term funding is expected to come from venture capital in the first quarter, CoCensys said, and from corporate partnerships with major pharmaceutical companies.

CoCensys named a board member and head of research and drug discovery, Dr. Eckard Weber, as president and chief executive of Cytovia.

CoCensys develops drugs to treat neurological and psychiatric disorders.