Cypros Pharmaceutical reports third-quarter and nine-month results.

CARLSBAD, Calif.--(BUSINESS WIRE)--June 9, 1995--Cypros Pharmaceutical Corp. (NASDAQ:CYPR), a development-stage pharmaceutical company, reported results for its third quarter and nine months ended April 30, 1995.

According to the announcement made by Paul J. Marangos, the company's chairman and chief executive officer, the loss for the quarter was $897,202, or 8 cents per share, compared with a loss of $474,128, or 6 cents per share, for the prior-year period.

For the nine months, the loss was $2,359,677, or 25 cents per share, compared with a loss of $1,660,449, or 23 cents per share, for the comparable period of the prior year. All of the per-share amounts reflect the 2:5:1 stock split that became effective on May 8.

In commenting on the results, he added: "The results reflect the substantial expenditures incurred during the third quarter and the last nine months for personnel, clinical research organization and clinical site costs as the various clinical trials of CPC-111 and CPC-211 began and our research programs geared up.

"The increased operating activities also brought concomitant increases in general and administrative expenses, principally personnel and financial advisory costs. Now that three Phase II trials of CPC-111 are under way simultaneously and at least one more will start in the fourth quarter, along with one or more Phase II trials of CPC-211, the company's expenditures for the fourth quarter and the rest of calendar year 1995 will continue to increase, especially in the clinical and regulatory area."

At April 30, 1995, the company had cash, cash equivalents and short-term investments of more than $13.8 million. David W. Nassif, chief financial officer, commented: "The April 30 numbers fully reflect the very successful Class A Warrant Program which ended during the quarter.

"The company is adequately capitalized to pursue its business plan for the next two years, depending on the timing of clinical trials, the funding priorities it gives its research programs, the results of clinical trials and research programs, and other factors.

"However, additional capital may be needed to implement the program we began recently to acquire products with existing sales. The results for the quarter and the nine-month period also reflect income of $267,826 and $501,412, respectively, from our SBIR grant and interest on our investments, substantial increases over the $51,059 and $132,406, respectively, reported for the prior-year periods."

Cypros is a Carlsbad-based company developing small-molecule drugs that facilitate a process called anaerobic glycolsis, which is the body's ability to generate metabolic energy under ischemic (low blood flow) conditions.

The company has two lead product candidates: CPC-111 (currently in Phase II trials for adult respiratory distress syndrome, cardiac surgery and decompensating heart failure) and CPC-211, which successfully completed a Phase I trial in January 1995. -0-

                       Cypros Pharmaceutical Corp.
                      (A development-stage company)
                        Statements of Operations
                              (Unaudited)

                          Three Months Ended        Nine Months Ended
                               April 30,                April 30,
                           1995       1994          1995        1994

Expenses:
  Research and
   development         $ 189,527  $ 122,275     $ 545,014    $ 428,013
  Clinical testing and
   regulatory            416,065    186,039     1,153,310      694,244
  General and
   administrative        559,436    216,873     1,162,765      670,598

                       1,165,028    525,187     2,861,089    1,792,855

Research grant income     66,423        ---       156,806          ---
Interest income, net     201,403     51,059       344,606      132,406
Net loss               $(897,202) $(474,128)  $(2,359,677) $(1,660,449)

Net loss per share      (8 cents)  (6 cents)    (25 cents)   (23 cents)

Shares used in
  computing net
   loss per share     11,173,980  7,783,650     9,366,410    7,139,833

-0-

                                           Nov. 2, 1990
                                           (inception)
                                             through
                                          April 30, 1995

Expenses:
  Research and development                $  1,881,510
  Clinical testing and
   regulatory                                2,641,966
  General and administrative                 2,978,490
                                             7,501,966

Research grant income                          256,806
Interest income, net                           606,060
Net loss                                  $ (6,639,100)

CONTACT: Cypros Pharmaceutical Corp., Carlsbad

David W. Nassif, 619/929-9500