Cypress Bioscience Completes Financing.SAN DIEGO--(BW HealthWire)--Oct. 10, 1997--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), announced today that it has raised approximately $5 million in a private placement of common stock. The funds from the private placement should provide Cypress with the resources to complete its ongoing Phase III pivotal trial in rheumatoid arthritis, which is projected to complete patient enrollment in mid-1998. The Company plans to file a PMA PMA (papillary-marginal-attached), n a system of epidemiologic scoring of periodontal disease devised by Schour and Massler in which the symbols denote the areas involved in gingival inflammation. PMA Progressive muscular atrophy as early as late 1998. The proceeds from the private placement will also be instrumental in launching a large Phase II trial for Cyplex(TM) platelet alternative (Infusible in·fus·i·ble adj. Suitable for infusion; capable of being infused. in·fus  i·bil Platelet Membranes). A total of approximately 3.4 million shares of common stock were sold at $1.50 per share to a group of investors, the majority of which were already substantial stockholders of the Company's stock. In addition to additional investments by the Company's long-standing investors, a new institutional investor accounted for approximately 20% of the funds raised. As a result of the private placement, the Company currently has approximately 38 million shares of common stock outstanding. This brings the cumulative total of funds raised by the management team of Cypress Bioscience to over $26 million since January 1996. "We are gratified by our investor support which should enable us to fund our pivotal rheumatoid arthritis trial to its completion, hopefully some time in mid-1998," said Jay Kranzler, M.D., Ph.D., CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cypress Bioscience. "The continued support and commitment of our largest investors has been critical to our success thus far by providing us with the resources to successfully execute our business strategy over the last two years," he continued. Cypress develops, manufactures and markets medical devices and therapeutics for the treatment of certain types of immune disorders and is engaged in the development of novel therapeutic agents for the treatment of blood platelet disorders. The Company's leading product, the PROSORBA(R) column, is approved by the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. for sale in the treatment of patients with idiopathic thrombocytopenic purpura Idiopathic Thrombocytopenic Purpura Definition Idiopathic thrombocytopenic purpura, or ITP, is a bleeding disorder caused by an abnormally low level of platelets in the patient's blood. (ITP ITP - Intent to Package ), an immune-mediated bleeding disorder. The Company is currently conducting a multi-center controlled clinical trial controlled clinical trial, n a research strategy that calls for two samples: an experimental sample of patients receiving a pharmaceutical, and a second sample of control patients receiving a placebo. using the PROSORBA column for treatment of rheumatoid arthritis based on encouraging pilot studies completed in 1995. Recently, the Company acquired Cyplex platelet alternative, which is positioned to become an alternative to traditional platelet transfusions, a $1.5 billion market worldwide. -0- Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, risks and uncertainties associated with the sufficiency of the proceeds raised in the private placement to complete the Company's Phase III clinical trial Noun 1. phase III clinical trial - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the in rheumatoid arthritis, the pursuit of regulatory approvals for the PROSORBA column and Cyplex platelet alternative, whether the Company can successfully increase sales of its PROSORBA column, whether Cyplex platelet alternative will ever become a substitute for traditional platelet transfusions, and the effectiveness and marketability of medical products, as well as other risks detailed from time to time in the Company's SEC reports, including its report on Form 10-K for the year ended December 31, 1996. CONTACT: Cypress Bioscience Inc. Susan E. Feiner, 619/452-2323 |
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