SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549
                                  -------------

                                    FORM 8-K

                                 CURRENT REPORT
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934



      Date of Report (Date of earliest event reported): September 17, 1998



                                  CORTECH, INC.
               (Exact name of registrant as specified in charter)



                           Delaware 0-22018 84-0894091
                        (State or other jurisdiction 
                            (Commission File Number)
                        (IRS Employer of incorporation)
                               Identification No.)



                6850 N. Broadway, Suite G, Denver, Colorado 80221
                         (Address of principal executive
                               offices) (Zip Code)



        Registrant's telephone number, including area code (303) 650-1200

                                 Not Applicable
          (Former name or former address, if changed since last report)








Item 5.  Other Events.

On September 17, 1998, the  Registrant  issued a press release  announcing  that
four  nominees of Asset Value Fund Limited  Partnership  had been elected to the
Registrant's board of directors.  In addition,  the Registrant  announced that a
proposal  to effect a  ten-for-one  reverse  stock  split had been  approved  by
shareholders and that implementation of the split would be considered by the new
Board of Directors. In addition, shareholders approved a stockholder proposal to
increase  the size of the Board of  Directors  from five to  seven,  defeated  a
proposal to empower  the Board of  Directors  to set the size of the Board,  and
approved the appointment of Arthur Andersen as the Company's auditors. The press
release  is  attached  hereto as  Exhibit  99.1 and  incorporated  herein in its
entirety by this reference.


Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

(c)  Exhibits

Item       Exhibit

99.1        Press Release issued by the Registrant on September 17, 1998.




                                    * * * * *







                                    SIGNATURE


Pursuant to the  requirements  of the  Securities  and Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


                             CORTECH, INC.
                             (Registrant)


September 18, 1998

                             /s/Diarmuid Boran 
                             ------------------
                             Diarmuid Boran,
                             Chief Operating Officer and Acting Chief Financial
                             Officer










  Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACT:
          Diarmuid F. Boran                                 Janice Troha
        Chief Operating Officer                    Vice President - Development
             Cortech, Inc.                                  Cortech, Inc.
           (303) 657-7010                                  (303) 657-7140


                   CORTECH ANNOUNCES RESULTS OF PROXY CONTEST

DENVER,  Colo.  -  September  17,  1998  --  Cortech,   Inc.  (OTCBB:  CRTQ),  a
Denver-based  biopharmaceutical  company,  today  announced  that the  Company's
stockholders,  at the Company's  annual  meeting,  elected Paul O. Koether,  61,
James L.  Bicksler,  60,  John W.  Galuchie,  45,  and Mark W.  Jaindl,  38,  as
directors of the Company.  The four new directors  were nominated by Asset Value
Fund  Limited  Partnership  in  opposition  to the  nominees  of  the  Company's
management.  Asset Value's slate received  approximately 50.2% of the votes cast
while the slate  nominated by the Company's  management  received  approximately
49.8% of the votes cast.  Approximately 80.2% of the Company's shareholders cast
ballots in the election of directors.  The four Asset Value  nominees join three
current board members whose terms expire in 1999 or 2000.

In addition, Cortech announced that its proposed ten-for-one reverse stock split
was approved by approximately  76.5% of the Company's  outstanding  stock at the
annual  meeting  (with  approximately  3.3% opposed and 20.2%  abstaining or not
voting). The implementation of the reverse stock split will be considered by the
new  Board  of  Directors  and a  further  announcement  will be made  prior  to
effecting the split.

On  other  matters  voted  on  at  Cortech's   annual  meeting,   the  Company's
stockholders  approved  Asset Value's  proposal to expand the Board of Directors
from five to seven by a margin of 61% to 39%, and rejected management's proposal
to empower  the Board of  Directors  to set the size of the board by a margin of
42% to 38% (with 20% abstaining or not voting). Management's proposal to confirm
the  appointment  of Arthur  Andersen as the Company's  auditors was approved by
approximately 98.8% of the stockholders voting.

Bert Fingerhut,  Cortech's Chairman and Acting Chief Executive  Officer,  stated
that  "Although the proxy contest was closely  contested and fought  vigorously,
the Company's  directors  must now come together and seek to accomplish the best
result for the Company and its stockholders. I welcome Mr. Koether and the other
new members of the Board and look forward to the opportunity to work with them."

Paul  Koether,  Asset  Value's  manager and Chaiman of Kent  Financial  Services
(NASDAQ:  KENT) said "The new Board will look to cut  expenses,  stabilize  cash
flow and evaluate an array of  alternatives  in an effort to maximize  value for
all stockholders."

Cortech is a  biopharmaceutical  company whose research and development  efforts
have focused primarily on bradykinin antagonists and protease inhibitors.  These
efforts  have  produced  a  technology   portfolio   which  may  have  potential
therapeutic  application across a broad range of medical  conditions.  Cortech's
strategy is to seek  collaborative  partners to conduct and fund future research
and  development on the  components of its  portfolio,  although there can be no
assurance that any particular agreement will be completed.  All on-site research
and development  activities have been  discontinued in an effort to preserve the
company's  financial  resources.  Cortech is, however,  funding focused research
activities  through   collaborative   arrangements  with  academic  and  medical
institutions.

This press release  contains  forward-looking  statements that involve risks and
uncertainties  and  actual  results  may  differ  materially.  These  statements
concern,  among other things, the future prospects for the Company's technology,
compounds  based  upon that  technology  and the  ability  to create  and obtain
funding for further development.  Statements  concerning the Company's prospects
are subject to risks and uncertainties that could cause actual results to differ
from current projections.  These risk factors,  which include the risks inherent
in drug discovery and  development,  are identified in Cortech's  reports to the
Securities and Exchange Commission filed on forms 10-K and 10-Q.



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