Auditors Withdraw ``Going Concern Opinion'' according to Cypress Bioscience Inc.Business Editors and Health/Medical Writers SAN DIEGO--(BW HealthWire)--April 2, 2002 Cypress Bioscience, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CYPB) (NASDAQ:CYPBC) announced today that their auditors, Ernst & Young, have withdrawn the "going concern opinion." Since the company's auditors completed their audit of the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge and issued their report dated Feb. 21, 2002, which contained an explanatory paragraph regarding the company's ability to continue as a going concern, the company, as announced yesterday, has completed an issuance of its common stock and warrants to purchase common stock resulting in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $15.5 million. Therefore, the conditions that raised substantial doubt about whether the company will continue as a going concern no longer exist and the auditors revised their opinion accordingly in their report included in the company's annual report filed on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . About Cypress Bioscience Inc. Cypress is committed to be the innovator and commercial leader in providing products that improve the diagnosis and treatment of patients with fibromyalgia syndrome fibromyalgia syndrome Fibrositis, tension myalgia Psychiatry A condition characterized by muscular pain, fatigue, sleep disorders, anxiety, depression, headaches, IBS–possibly linked to anxiety and panic disorders Management Exercise, benzodiazepines, SSRIs, , or FMS FMS - Flexible Manufacturing System (factory automation). , and related pain and central nervous system disorders Nervous system disorders A satisfactory classification of diseases of the nervous system should include not only the type of reaction (congenital malformation, infection, trauma, neoplasm, vascular diseases, and degenerative, metabolic, toxic, or deficiency . In January 2001, the company began a strategic initiative focusing on FMS. In August 2001, Cypress licensed its first product for clinical development, milnacipran, to treat the widespread pain associated with FMS. For more information about Cypress, visit the company's Web site at www.cypressbio.com. For more information about FMS, visit www.FMSresource.com. This press release, as well as Cypress' SEC filings and Web site at http://www.cypressbio.com, contain forward-looking statements, including statements about the contemplated financing and the continued listing of the company's common stock on the Nasdaq SmallCap Market, within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Actual results could vary materially from those described as a result of a number of factors, including those set forth in Cypress Annual Report on Form 10-K and any subsequent SEC filings. In addition, there is the risk that our securities may be delisted from the Nasdaq SmallCap Market, that we may not be able to successfully develop or market any products for the treatment of FMS under the Pierre Fabre agreement or at all; that our clinical development plan or timeline for milnacipran may be delayed, including our plan to begin treating patients in a Phase II clinical trial Noun 1. phase II clinical trial - a clinical trial on more persons than in phase I; intended to evaluate the efficacy of a treatment for the condition it is intended to treat; possible side effects are monitored phase II in early 2002; that the capital that we raised in the financing will not allow us to execute our business plans into 2003; that we may encounter regulatory or other difficulties in the development of milnacipran for FMS; that milnacipran may not significantly improve the treatment of FMS; that Fresenius may not be able to successfully market the PROSORBA column; and that we may not receive any future royalties under our revised agreement with Fresenius. Cypress undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this press release, except as required by law. |
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