Ahead of the Bell: Cypress Bioscience
News Desk
... Cypress Bioscience had about $1.2 million in revenue in the first
quarter of 2006. Pfizer is also developing a drug to treat fibromyalgia
syndrome, Walsh said. ...
June 19, 2006, 8:23AM
Ahead of the Bell: Cypress Bioscience
© 2006 The Associated Press
NEW YORK - Shares of Cypress Bioscience Inc., a San Diego-based drug
maker, may see increased trading volume when the market opens Monday
after an analyst said the company might be on the verge of developing a
drug addressing an untapped $1 billion market.
Jefferies & Company Inc. analyst Adam Walsh reiterated his "Buy" rating
and has a price target of $14, versus Friday's closing price of $6.28.
The company is in the second Phase 3 trial for antidepressant
milnacipran, a potential treatment for fibromylagia syndrome, a pain
and fatigue disorder. Walsh said there are no approved drugs to treat
the syndrome, which presents the company a $1 billion market
opportunity all to itself. Cypress Bioscience had about $1.2 million in
revenue in the first quarter of 2006.
Pfizer is also developing a drug to treat fibromyalgia syndrome, Walsh
said.
Walsh said Cypress' trial has a "high likelihood of success" based on
consultations with physicians and a statistician. But the share price
protects investors against the drug's failure, because the company has
nearly half its stock's market value in cash, limiting the extent the
stock could fall were the drug to fail.