Cypress Reports 4Q Loss On Lower Revenue, Costs

SAN DIEGO (AP) — Drug developer Cypress Bioscience Inc. said Monday it swung to a loss in the second quarter, as revenue from collaborations fell and costs increased.

Cypress lost $7.2 million, or 19 cents per share, compared with profit of $3 million, or 8 cents per share, during the same period a year prior. Revenue plunged to $949,000 from $6.1 million.

Analysts polled by Thomson Reuters expected a loss of 8 cents per share on revenue of $4.4 million.

The lower quarterly revenue occured as expenses jumped 73 percent to $9 million.

Though revenue from collaborations plunged during the quarter, a hefty payment from partner Forest Laboratories earlier in fiscal 2008 helped boost revenue for the entire year.

For the full year, the company lost $18.2 million, or 48 cents per share, compared with profit of $3.5 million, or 10 cents per share, in 2007. Revenue rose to $17.2 million from $13.9 million.

Shares of Cypress Bioscience fell 38 cents, or 4.7 percent, to $7.77 in morning trading. Shares have traded between $4.90 and $10.10 over the past 52 weeks.