Good News for CYPB
FS Van Kasper Initiating Coverage on Cypress Bioscience, Inc. with a Strong Buy Rating.
San Francisco, California
8/3/99
San Francisco, California – Alan H. Auerbach, Biotechnology analyst at FS Van Kasper, has initiated
coverage on Cypress Bioscience, Inc. (NASD: CYPB, $2 5/8) with a Strong Buy Rating.
Investment Conclusion: We are initiating coverage of Cypress Bioscience with a Strong Buy rating
and a 12-month price target of $6 per share, based on applying a 25 times multiple to our FY 2001
earnings estimate of $0.29 per share and discounting back at a 15-20% rate.
We believe that the Company's recently approved medical device, the Prosorba column, has the
potential to carve out a niche for itself in the refractory rheumatoid arthritis market.
We anticipate that the Company's stock price will be driven largely by two factors: 1) increased
awareness of the Prosorba column in the rheumatoid arthritis market; and 2) Prosorba revenues and the
Company's progress toward profitability.
Cypress Bioscience develops and markets medical devices and therapeutics for the treatment of certain
types of immune system disorders and is engaged in the development of novel therapeutic agents for the
treatment of blood platelet disorders. The Company's first product, the Prosorba column, is a medical
device that treats a patient's defective immune system so that it can more effectively respond to certain
diseases. While the product was initially approved for an immune-mediated bleeding disorder known as
idiopathic thrombocytopenic purpura ("ITP"), Cypress recently received approval to sell the Prosorba
column for use in rheumatoid arthritis. We believe that the device has considerable potential for
commercial success, especially in patients with severe rheumatoid arthritis.
First Security Van Kasper makes a market in the shares of Cypress Bioscience, Inc.
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