Cypress Bioscience Inc. Receives Consent for BioLineRx Ltd. In-License Agreement

SAN DIEGO, CA--(Marketwire - August 10, 2010) - Cypress Bioscience, Inc. (NASDAQ: CYPB), a pharmaceutical company engaged in the development of innovative drugs to treat central nervous system disorders, today announced that it has received written notice of consent and effectiveness from the Office of Chief Scientist of the Ministry of Industry, Trade and Labor of the State of Israel (the "OCS") regarding its previously announced in-license agreement for BioLineRx's novel antipsychotic (BL-1020, now CYP-1020), a potential breakthrough treatment for schizophrenia. The agreement, which was amended to reflect input from the OCS, will enable Cypress to build its strategic focus on R&D. There were no material modifications to the agreement and the financial terms of the transaction remain unchanged.

As a result of the OCS's approval, Cypress has released the upfront payment of $30 million from escrow to BioLineRx.

"We are pleased to move forward with our agreement with BioLineRx, as we believe that the novel antipsychotic CYP-1020 holds great potential to address both the psychotic symptoms and cognitive deficits associated with schizophrenia. This agreement marks an important step forward in Cypress' strategy to build one of the highest quality CNS pipelines in the industry," said Jay D Kranzler, MD, PhD, Chairman and Chief Executive Officer of Cypress Bioscience. "We are now in a position to move forward with the next stage of development for this important asset."

Cypress will launch a clinical trial of CYP-1020 in early 2011 aimed at further demonstrating its potential for improving cognitive deficits associated with schizophrenia. Cypress expects that topline data from the clinical study will be available late in the third quarter of 2012. The next milestone payment will be contingent upon the subsequent initiation of an additional study.

About Cypress Bioscience

Cypress Bioscience is a pharmaceutical company dedicated to the development of innovative drugs targeting large unmet medical needs for patients suffering from a variety of disorders of the central nervous system. Since 1999, Cypress has received multiple FDA approvals, including Prosorba™, a medical device for rheumatoid arthritis, and Savella® (milnacipran HCl), for fibromyalgia. The Company focuses on generating shareholder value by reaching clinical development milestones as quickly and efficiently as possible. Cypress' currently marketed product is Savella. Development-stage assets include CYP-1020 for cognitive impairment in schizophrenia, as well as AVISE-SLE(SM), a lupus diagnostic testing service. AVISE-SLE(SM) is included in the Company's personalized medicine services business, which the Company recently announced it intends to sell or cease operating by the end of the third quarter of 2010. More information on Cypress and its products and development assets is available at http://www.cypressbio.com/.

About BioLineRx

BioLineRx Ltd. is a publicly-traded (TASE: BLRX) biopharmaceutical development company based in Jerusalem, Israel with US offices in Rockville, Maryland. BioLineRx is dedicated to identifying, in-licensing and developing therapeutic candidates for unmet medical needs or that have advantages over currently available therapies. BioLineRx's current development pipeline consists of three clinical stage candidates as well as seven candidates in various pre-clinical development stages spanning a variety of indications including central nervous system diseases, oncology, cardiovascular and autoimmune diseases. One of BioLineRx's lead compounds, BL-1040, has recently been out-licensed to Ikaria Holdings Inc. for a total deal value of $282.5 million. For more information about BioLineRx, please visit www.biolinerx.com.

Forward-Looking Statements
This press release, as well as Cypress' SEC filings and website at http://www.cypressbio.com, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements with respect to CYP-1020 and its potential to treat the psychotic symptoms and cognitive deficits associated with schizophrenia and become a new standard as a first-line antipsychotic, Cypress's ability to successfully develop and commercialize CYP-1020, the ability of Cypress to achieve regulatory, commercial and other milestones under the license agreement and to sell products that cause royalties to be payable under the license agreement, and the timing associated with Cypress' launch of a Phase 2b clinical trial for CYP-1020 and having topline data available from that trial. Actual results could vary materially from those described as a result of a number of factors, including the risks involved with the high uncertainty that characterizes research and development activities in general, particularly those of drug development, including the risks that CYP-1020 may not demonstrate adequate safety and/or efficacy in later clinical trials to continue with its development, may not have adequate intellectual property right protection to support its continued development in the Cypress territory, may be unable to obtain FDA or similar regulatory approval as a drug candidate for any of many reasons relating to the regulatory approval process, or may address a commercial market that is smaller than currently anticipated by Cypress and that does not support its continued development, or that Cypress may otherwise fail to successfully develop and commercialize CYP-1020 in its territory on a timely and cost-effective basis or at all, and other risks and uncertainties described in Cypress' most recent Annual Report on Form 10-K, most recent Quarterly Report on Form 10-Q and any subsequent SEC filings. You are urged to consider statements that include the words "may," "will," "would," "could," "should," "believes," "potential," "expects," "plans," "anticipates," "intends," or the negative of those words or other comparable words to be uncertain and forward-looking.

The statements in this press release speak only as the date hereof, and neither Cypress nor BioLineRx undertakes any obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.


INFORMATION SERVICES CONTACTS:
MacKenzie Partners
Amy Bilbija
650-798-5206
Bob Marese
212-929-5500

MEDIA CONTACTS:
Joele Frank, Wilkinson Brimmer Katcher
Andrew Siegel / Jillian Ginsberg
212-355-4449

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