Cypress Bioscience Announces Second Quarter 2009 Financial Results

SAN DIEGO, CA--(Marketwire - August 10, 2009) - Cypress Bioscience, Inc. CYPB today announced financial results for the second quarter of 2009. The Company reported total revenue of $5.8 million for the quarter ended June 30, 2009, which includes commercial revenue of $4.8 million and revenues under collaborative agreement of $0.9 million. For the quarter ended June 30, 2009, the Company reported a net loss of $8.6 million or $0.23 per share compared to a net loss of $4.0 million or $0.11 per share for the same period in 2008. At June 30, 2009, the Company had cash, cash equivalents and investments totaling $151.3 million.

"The launch of Savella in April 2009 represents the culmination of our efforts to bring to market a valuable new treatment for patients suffering from fibromyalgia, which is a chronic and often debilitating condition," said Jay Kranzler, Chairman and CEO of Cypress Bioscience.

The Company reported revenues of $5.8 million and $13.7 million for the quarter and six months ended June 30, 2009, respectively, compared to $1.0 million and $15.2 million for the same periods in 2008. During the quarter ended June 30, 2009, the Company recognized commercial revenues of $4.8 million, which includes royalty revenue of $1.4 million and sales force reimbursement of $2.9 million, in connection with the launch of Savella.

Total operating expenses for the quarter and six months ended June 30, 2009 were $14.9 million and $32.6 million, respectively, compared to $6.2 million and $25.0 million for the same periods in 2008. The increase in operating expenses in 2009 primarily reflects costs associated with building and supporting our commercial organization.

About Cypress Bioscience, Inc.

Cypress Bioscience, Inc. provides therapeutics and personalized medicine services, facilitating improved and individualized patient care. Cypress addresses the evolving needs of specialist physicians and their patients by identifying unmet medical needs in the areas of pain, rheumatology, and physical medicine and rehabilitation, including challenging disorders such as fibromyalgia and rheumatoid arthritis. This approach to improving patient care creates a unique partnership with physicians. Current products include Savella™ (milnacipran HCl) and the Avise PG(SM) and Avise MCV(SM) therapeutic monitoring, diagnostic and prognostic tests for rheumatoid arthritis.

For more information about Cypress, please visit the Company's web site at www.cypressbio.com.

This press release, as well as Cypress' SEC filings and website at http://www.cypressbio.com, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements related to the marketing of Savella™ for the management of fibromyalgia, the expected benefits of the personalized medicine services, and the expected competitive and commercial advantages of offering these services to rheumatologists. Actual results could vary materially from those described as a result of a number of factors, including the risks involved with Cypress' ability to create a successful sales force and execute its marketing strategy, risks around market acceptance of Savella™ and our personalized medicine services and whether they will facilitate improved diagnostic, prognostic and therapeutic decision making for rheumatologists, risks involved with the development and commercialization of Cypress' product candidates and personalized medicine services, and other risks and uncertainties described in Cypress' most recent Annual Report on Form 10-K, most recent Quarterly Report on Form 10-Q and any subsequent SEC filings. You are urged to consider statements that include the words "may," "will," "would," "could," "should," "believes," "potential," "expects," "plans," "anticipates," "intends," or the negative of those words or other comparable words to be uncertain and forward-looking. The statements in this press release speak only as the date hereof, and Cypress undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

CYPRESS BIOSCIENCE, INC. Condensed Consolidated Financial Data (In thousands except per share data) Statement of Operations Data: Quarter ended Six months ended June 30, June 30, 2009 2008 2009 2008 --------- --------- --------- --------- (unaudited) (unaudited) Revenues: Revenues under collaborative agreement $ 930 $ 1,015 $ 8,323 $ 15,231 Commercial revenues 4,819 - 5,282 - Revenues from personalized medicine 56 - 59 - --------- --------- --------- --------- Total revenues 5,805 1,015 13,664 15,231 Operating expenses: Cost of personalized medicine services 499 - 858 - Research and development 2,048 3,009 9,286 5,679 General and administrative 12,357 3,166 22,414 6,704 In-process research and development - - - 12,590 --------- --------- --------- --------- Total operating expenses 14,904 6,175 32,558 24,973 --------- --------- --------- --------- Interest income 490 1,169 1,125 2,870 --------- --------- --------- --------- Net loss $ (8,609) $ (3,991) $ (17,769) $ (6,872) ========= ========= ========= ========= Net loss per share - basic and diluted $ (0.23) $ (0.11) $ (0.47) $ (0.18) ========= ========= ========= ========= Shares used in computing net loss per share - basic and diluted 38,060 37,642 38,021 37,583 ========= ========= ========= ========= Balance Sheet Data: June 30, December 31, 2009 2008 ------------ ------------ (unaudited) Assets Cash, cash equivalents and short-term investments $ 151,295 $ 145,495 Other current assets 8,998 1,214 Goodwill 23,029 26,466 Other non-current assets 2,124 1,418 ------------ ------------ Total assets $ 185,446 $ 174,593 ============ ============ Liabilities and Stockholders' Equity Current liabilities $ 12,015 $ 7,958 Long-term liabilities 26,508 6,720 Stockholders' equity 146,923 159,915 ------------ ------------ Total liabilities and stockholders' equity $ 185,446 $ 174,593 ============ ============