Cypress Bioscience takes bigger loss as costs rise

Cypress Bioscience says 3rd-quarter loss grew due to costs connected to launch of Savella

• On 2:47 pm EST, Monday November 9, 2009

SAN DIEGO (AP) -- Cypress Bioscience Inc. posted a larger third-quarter loss Monday due to the costs involved with launching its fibromyalgia drug Savella, which was approved earlier this year.

Cypress recorded a loss of $5.5 million, or 14 cents per share, compared with a loss of $4.1 million, or 11 cents per share, in the same quarter a year earlier. Revenue rose to $6.1 million from $979,000. Most of that came from royalty revenue or sales force reimbursement on sales of Savella, which is marketed by Forest Laboratories.

Thomson Reuters says analysts expected a loss of 21 cents per share and revenue of $5.7 million.

Cypress said its administrative expenses more than doubled to $9.9 million from $4.1 million.

Cypress reported no commercial revenue a year ago. All its revenue came from collaborative agreements.

In afternoon trading, shares of Cypress fell 78 cents, or 11.5 percent, to $6. The stock has ranged from $4.98 to $10.10 over the past year.