Cypros Pharmaceutical reports first-quarter results.

CARLSBAD, Calif.--(BUSINESS WIRE)--Dec. 9, 1994--Cypros Pharmaceutical Corp. (NASDAQ:CYPR), a development-stage biopharmaceutical company, reported results for its first quarter ended Oct. 31, 1994.

According to Paul J. Marangos, president of Cypros, the loss for the quarter was $635,551, or 20 cents per share, compared with a loss of $630,294, or 25 cents per share, for the prior-year period.

In commenting on the results, he added: ``We are pleased to have maintained our level of expenses compared to last year's first quarter while at the same time aggressively pushing forward with our cytoprotective drug development program. During the quarter, we began our Phase I trial of CPC-211, which has since been completed, and prepared for multiple Phase II trials of CPC-111.''

At quarter-end, the company had cash, cash equivalents and short-term investments of more than $5.1 million.

David W. Nassif, the company's chief financial officer, commented: ``While the company has a comfortable level of working capital, our clinical-trial plans will cause the company's rate of spending to increase significantly. Accordingly, subsequent to quarter-end, the company announced the commencement of a special incentive program for its Class A warrant holders, which has resulted in more than $2 million of new capital to date.''

Cypros is a Carlsbad-based company currently developing two small-molecule drugs, CPC-111 and CPC-211, that facilitate anaerobic glycolysis, which is the body's ability to generate metabolic energy under ischemic (low-blood-flow) conditions.

Cypros recently completed the patient dosing on a Phase I trial with its cerebral-ischemia drug, CPC-211, and will begin soon Phase II trials of CPC-111 in a variety of patented indications, including congestive heart failure, cardioplegia and sickle-cell anemia. -0-

                    CYPROS PHARMACEUTICAL CORP.
                   (A development-stage company)
                     Statements of Operations
                           (Unaudited)

                                                              Nov. 2,
                                                               1990
                                                            (inception)
                                       Three months ended     through
                                            Oct. 31,          Oct. 31,
                                        1994        1993        1994
Expenses:
 Research and development          $ 160,820   $ 166,407 $ 1,497,316
 Clinical testing and regulatory     261,680     320,333   1,750,336
 General and administrative          292,134     184,468   2,107,859
                                     714,634     671,208   5,355,511
Research grant income                 25,827          --     125,827
Interest and other income, net        53,256      40,914     314,710
Net loss                           $(635,551)  $(630,294)$(4,914,974)
Net loss per share                 (20 cents)  (25 cents)
Shares used in computing
 net loss per share                3,214,555   2,520,969

CONTACT: Cypros Pharmaceutical Corp., Carlsbad

David W. Nassif, 619/929-9500