Cypress ends Savella co-promotion, restructures
Cypress Bioscience Inc. (NASDAQ:CYPB) discontinued co-promotion of fibromyalgia drug Savella milnacipran in the U.S. with partner Forest Laboratories Inc. (NYSE:FRX) and announced plans to reduce headcount by 123 (86%) to 20. Cypress, which remains eligible for royalties on Savella, said it "may pursue the opportunity to re-activate the co-promotion right." Cypress will receive a one-time payment of $2 million. Forest reported $53 million in sales of Savella in the fiscal year ending March 31.
Cypress plans to focus on CYP-1020 (formerly BL-1020), a GABA enhanced antipsychotic agent that has completed a Phase IIb trial to treat schizophrenia. Cypress has North American rights to the product from BioLineRx Ltd. (Tel Aviv:BLRX). An additional Phase IIb trial to treat cognitive deficits associated with schizophrenia is planned for 1Q11. ...