Cypress Biosciences (CYPB)

Cypress Biosciences (<a href=&quot;javascript:void(0)&quot; onclick=&quot;quotepop(&#39;cypb&#39;)&quot;>CYPB</a>) - With a data from a third positive phase III trial in fibromyalgia released in early December 2008, we are feeling confident that the FDA will approval Cypress Bioscience&#39;s and partner Forest Labs&#39; milnacipran product during the first quarter of 2009. <p> Approval of milnacipran will be a transformational event for Cypress. The company should become almost immediately profitable based on royalties from Forest Labs. By 2013 we see total revenues exceeding $110 million, with net margins above 50%. <p> We see fair value at $12 per share, or 25x our 2012 EPS estimate of $1.12 per share, discounted back to present day.

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