(Source: MARKETWIRE)Cypress Bioscience, Inc. (NASDAQ: CYPB) today announced financial results for the third quarter of 2009. The Company reported total revenue of $6.1 million for the quarter ended September 30, 2009, which includes commercial revenue of $5.2 million and revenues under collaborative agreement of $0.8 million. For the quarter ended September 30, 2009, the Company reported a net loss of $5.5 million or $0.14 per share compared to a net loss of $4.1 million or $0.11 per share for the same period in 2008. At September 30, 2009, the Company had cash, cash equivalents and investments totaling $144.8 million.

The Company reported revenues of $6.1 million and $19.7 million for the quarter and nine months ended September 30, 2009, respectively, compared to $1.0 million and $16.2 million for the same periods in 2008. During the quarter ended September 30, 2009, the Company recognized commercial revenues of $5.2 million, which includes royalty revenue of $1.3 million and sales force reimbursement of $3.4 million, in connection with the launch of Savella. The sales force reimbursement of $3.4 million recognized during the third quarter reflects a downward adjustment of $0.5 millon related to the second quarter.

Total operating expenses for the quarter and nine months ended September 30, 2009 were $11.8 million and $44.3 million, respectively, compared to $6.1 million and $31.1 million for the same periods in 2008. The increase in operating expenses in 2009 primarily reflects costs associated with building and supporting our commercial organization.

About Cypress Bioscience, Inc.

Cypress Bioscience, Inc. provides therapeutics and personalized medicine services, facilitating improved and individualized patient care. Cypress addresses the evolving needs of specialist physicians and their patients by identifying unmet medical needs in the areas of pain, rheumatology, and physical medicine and rehabilitation, including challenging disorders such as fibromyalgia and rheumatoid arthritis. This approach to improving patient care creates a unique partnership with physicians. Current products include Savella(TM) (milnacipran HCl) and the Avise PG(SM) and Avise MCV(SM) therapeutic monitoring, diagnostic and prognostic tests for rheumatoid arthritis.

For more information about Cypress, please visit the Company's web site at www.cypressbio.com.

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.