Cypress Bioscience Inc (CYPB)

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Cypress Bioscience Announces Third Quarter 2010 Financial Results

Tuesday , November 09, 2010 06:30ET


SAN DIEGO, CA -- (Marketwire) -- 11/09/10 -- Cypress Bioscience, Inc. (NASDAQ: CYPB) today announced financial results for the third quarter of 2010. The Company reported total revenue of $8.0 million for the quarter ended September 30, 2010, which includes commercial revenues of $7.2 million and revenues under collaborative agreement of $0.8 million. For the quarter ended September 30, 2010, the Company reported a net loss from continuing operations of $40.1 million or $1.04 per share compared to a net loss from continuing operations of $4.7 million or $0.12 per share for the same period in 2009. In connection with the Company's sale of its personalized medicine services business, the results of the personalized medicine services business are included in discontinued operations for all periods presented. At September 30, 2010, the Company had cash, cash equivalents and investments totaling $96.3 million.

The Company reported revenues of $8.0 million and $24.9 million for the quarter and nine months ended September 30, 2010, respectively, compared to $5.5 million and $19.1 million for the same periods in 2009. The $7.2 million in commercial revenues the Company reported for the quarter ended September 30, 2010 includes royalty revenues of $3.2 million and sales force reimbursement of $3.6 million in connection with the sales of Savella. The sales force reimbursement of $3.6 million recognized during the third quarter of 2010 includes a one-time fee of $2.0 million received from Forest Laboratories in connection with the discontinuation of the Company's rights under its agreement with Forest Laboratories to co-promote Savella. As previously announced, the Company will no longer be selling Savella or receiving sales force reimbursement in connection with sales of Savella; however, the Company will retain all other rights under its agreement with Forest Laboratories, including its royalty on Savella sales generated by Forest Laboratories.

Total operating expenses for the quarter and nine months ended September 30, 2010 were $48.2 million and $70.6 million, respectively, compared to $10.5 million and $39.7 million for the same periods in 2009. The increase in operating expenses for the three and nine months ended September 30, 2010 was primarily due to one-time upfront payments recognized as research and development expenses during the third quarter of 2010 in connection with licensing and asset purchase agreements for new compounds, which target large unmet medical needs for patients suffering from disorders of the central nervous system. Additionally, the Company recorded a restructuring charge in the amount of $3.7 million during the third quarter of 2010 in connection with a reduction in its workforce by approximately 86%.



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