The board of directors at Cypress Bioscience has rejected an unsolicited, nonbinding proposal by Ramius to acquire all of the outstanding shares of Cypress common stock not owned by Ramius for $4.00 per share in cash. The board unanimously agreed that the bid grossly undervalues Cypress’ current business and future prospects and consequently is not in the best interests of Cypress’ other stockholders.
Yesterday the company reported two cost-cutting measures that will reportedly save it over $10 million per year. In addition to passing all U.S. marketing rights to its fibromyalgia drug Savella® over to current U.S. co-marketing partner Forest Laboratories, Cypress also confirmed that it aims to either discontinue or sell its personalized medicine services business and slash its workforce by 86%. Cypress’ stock has dropped 37% over the last 52-week period, and currently sits at around $3.54 per share, with a 52-week high of $9.45 and a low point of $2.06. The firm recorded a net deficit of $28.25 million for the year ended December 31, 2009, on total revenues of $27.33 million. Cypress has a current market cap of some $139.3 million.