UPDATE 2-Repros Therapeutics runs out of cash, may go bankrupt

* Says doesn't have enough cash to fund ongoing operations

* Failure to raise cash may lead to bankruptcy/liquidation

* Q2 loss/shr $0.59 cents vs est loss/shr $0.46

* Shares fall as much as 36 pct (Adds analyst comments, updates stock movement)

By Esha Dey

BANGALORE, Aug 17 (Reuters) - Repros Therapeutics Inc (RPRX.O) said it does not have enough cash to fund ongoing operations and a failure to raise cash in the immediate short term may result in the filing of bankruptcy and dissolution of the company.

The company, which focuses on developing treatments for male and female reproductive disorders, said it has cut the salary of all its employees by 50 percent to reduce expenses, and also posted a wider-than-expected quarterly loss.

Repros has lately been battling several issues including a clinical hold on its lead drug Proellex on safety reasons and a class-action lawsuit filed by its shareholders alleging that the company issued materially false and misleading press releases on the trial results of Proellex.

Proellex is the company's experimental drug for uterine fibroids. It has another drug, Androxal, that is currently being tested in men with low testosterone levels

"If someone purchases their assets -- Proellex and Androxal -- they might be able to avoid bankruptcy, but (Repros) needs the cash very soon, probably a month at the most," Wedbush PacGrow analyst Kimberly Lee told Reuters.

"They have been wanting to sell the company for years now, and also wanting to partner these drugs, and it hasn't happened yet, so I think there is a slim chance," she added.

Lee thinks Androxal has a better chance at getting snapped up by another drugmaker or being partnered, than Proellex, mainly due to the safety concerns related to Proellex.

Lee, who maintained her "underperform" rating, suspended the fair value estimate on the stock.

CASH CRUNCH

Repros said that as of Aug. 14, it had about $2.7 million in cash and cash equivalents, and the amount of accounts payable and accrued expenses were significantly higher than $7.5 million.

The company also engaged a law firm that specializes in work-out and bankruptcy matters to assist the company in negotiating with its vendors. Several vendors have already stopped working for the company.

Net loss for the second quarter was $8.9 million, or 59 cents a share, compared with a net loss of $6.1 million, or 48 cents a share, for the year-ago period.

Shares of the Woodlands, Texas-based company were down 28 cents at 86 cents in morning trade Monday on Nasdaq. They touched a low of 74 cents earlier. (Editing by Gopakumar Warrier)