Cypress Bioscience, Inc. (CYPB) reported a net loss of 14 cents per share in the third quarter, 6 cents better than the Zacks Consensus Estimate of a net loss of 20 cents. Although revenues increased significantly from the year-ago period, net loss was higher due to higher operating expenses mainly due to costs associated with the setting up of the company’s commercial organization. Net loss in the year-ago period was 11 cents.   Total revenues came in at $6.1 million in the reported quarter, up significantly from the year-ago revenues of $0.9 million. Third quarter revenues of $6.1 million consisted of $5.2 million in commercial revenues, $0.8 million in revenues under collaborative agreements, and $0.075 million in revenues from the company’s personalized medicine service business.   Commercial revenues of $5.2 million included royalty revenue of $1.3 million, $0.5 million from commercial milestones and $3.4 million in co-promotion reimbursement ...

This morning, Depomed (DEPO) announced it has signed a non-exclusive licensing agreement with Merck (MRK), whereby Merck will have access to the company's technology for extended release metformin. We expect that Merck is seeking to co-formulate Depomed's metformin XR candidate with its DPP-IV agent, Januvia (sitagliptin). Merck already sells a fixed-dose combination sitagliptin-metformin as Janumet. However, Janumet must be taken twice daily because the formulation utilizes an immediate release metformin. Despite the dosing requirement, Janumet posted sales of $155 million in the second quarter 2009. We believe that Merck will look to quickly formulate Januvia with Depomed's metformin-XR product, thus allowing for once daily dosing with an improved side effect profile and tolerability over Janumet. Merck has guided total Januvia/Janumet sales in 2009 to between $2.4 and $2.7 billion. In return, Merck paid Depomed an upfront payment of $10 million in cash. Depomed ...

Yesterday, Forest Labs (FRX) reported fiscal first quarter EPS of 87 cents per share, exceeding both our and the consensus forecast of 82 cents per share.  Total revenues came in $1,008.2 million, up 4.3% from the same period in 2009 and slightly above our forecast of $1,001 million.  Product sales, which came in at $948.2 million, were just above our forecast mainly due to stronger-than-expected sales of Namenda and Savella.  Savella, which was launched recently, was off to a good start with sales coming in at $9.6 million.  Meanwhile, Lexapro sales were slightly lower-than-expected at $565.5 million.  Contract revenues also declined 11.9% to $47.7 million, mainly due to lower Benicar co-promotion income. Net income totaled $262.9 million during the fiscal first quarter, up 8% year-over-year.  Net income exceeded our forecasts by $15 million thanks to lower-than-expected operating costs and a lower tax rate in the ...

For Immediate Release

Chicago, IL - June 29, 2009 - Zacks Equity Research highlights Strayer Education (STRA) as the Bull of the Day and Red Robin Gourmet Burgers (RRGB) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Forest Laboratories, Inc. (FRX), ViroPharma (VPHM) and Pfizer (PFE).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day:

Financial results for the past thirteen quarters at Strayer Education (STRA) have been above expectations, and management's guidance for 2009 portends continued double-digit EPS growth.

The company benefits from positive pricing through annual 5% tuition increases with the 2009 tuition increase having been announced concurrent with the third quarter earnings report.

Despite the stock's valuation being in

...

In January 2009, the U.S. FDA approved Cypress Bioscience's (CYPB) Savella (milnacipran HCl) for the management of fibromyalgia. Following the minor re-workup of a cosmetic formulation change, the product became commercially available on April 28, 2009.In connection with its approval in January 2009, Cypress received a $25.0 million milestone payment and $6.5 million in expense reimbursement for clinical trial costs from partner Forest Labs (FRX). Forest and Cypress are now actively detailing the drug.Forest Labs, with its estimated 1,400 representative primary care sales force, and Cypress, with it estimated 100 representative specialty and hospital sales force, will co-promote the drug. Additionally, the duo will collaborate with patient advocacy groups and will be distributing product and disease state information in physician's offices, pharmacies, and over the Internet.The program will focus on raising awareness of fibromyalgia, educating patients about ...

Cypress Bioscience, Inc. (CYPB) reported financial results for the first quarter 2009 on May 11, 2009. Total revenues for the quarter were $7.9 million, and consisted primarily of collaborative payments from Savella development partner, Forest Laboratories, Inc. (FRX). This was generally in-line with our $8.2 million forecast.Net loss for the quarter was $9.2 million -- and significantly greater than our expectations -- due to approximately $5.0 million in R&D expense associated with a $3.0 million milestone payment to a licensor, Pierre Fabre, upon NDA approval of Savella and a $2.0 million payment in connection with an asset purchase transaction for a technology to diagnose and monitor Lupus. Earnings per share (EPS) for the first quarter equated to ($0.24). Cypress Bio exited the first quarter with $160.4 million in cash.Savella is now commercially available and priced at roughly $1500/year. We see peak sales potential ...

Reiterating Hold Recommendation on Forest LabsForest Laboratories, Inc. (FRX) turned in a very solid fiscal 2008. While 3rd quarter revenue was below our forecast, EPS was significantly better due to stronger operating margins as a result of better-than-expected gross margins and lower R&D and SG&A expenses. Revenue came in about $11 million shy of our expectations due to lower than forecast sales of Lexapro. We expect Lexapro sales to show a modest improvement now with the adolescent indication added to the label.Management's guidance for the full fiscal year remains below results in 2008, but has been revised upwards for the 3rd time. Forest now expects full-year adjusted EPS in the range of $3.35 - $3.45. The guidance reflects lower R&D expenses in the current quarter relative to previous expectations.We expect higher SG&A expenses through the remainder of the year to support the ...

Cypress Biosciences Skyrockets on FDA Approval of SavellaAfter the market closed on Wednesday, Forest Labs (FRX) and Cypress Biosciences (CYPB) announced FDA approval of Savella (milnacipran) for the management of fibromyalgia. Once launched, Savella will enter the multi-billion dollar fibromyalgia market, a painful and debilitating condition affecting over 6 million Americans annually.Last month we initiated coverage of Cypress Bio at $6.04 with a 'Buy' rating and near-term $12 price target. Paramount to our thesis was the expected approval of Savella in early 2009.We view approval of Savella as a transformational event for Cypress Bio. We expect the company to become profitable almost immediately after the launch of the drug; and, highly profitable with net margins approaching the 50% range by 2012.We expect the drug to be priced very competitively relative to other leading fibromyalgia drugs such as Lilly's (...

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, Inc.'s (CYPR) and partner Forest Laboratories, Inc. (FRX) milnacipran product during the first quarter of 2009.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%.We see fair value at $12 per share, or 25x our 2012 EPS estimate of $1.12 per share, discounted back to present day.Read the full analyst report on CYPR Read the full analyst report on FRX "CYPR" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research

Cypress BioScience (Nasdaq: CYPB) 1-Year Chart
Cypress Biosciences (CYPB) is set for two major trading catalysts over the second half of this year in the form of a PDUFA decision date by the FDA on 10/31/08 for milnacipran in the treatment of fibromyalgia (FM) and results from a third Phase 3 trial of the drug for the same indication. Cypress Bio has a partnership deal with specialty pharma company Forest Labs (NYSE: FRX), with the potential for total upfront & milestone payments of $200 – $250 million in addition to ongoing royalties on product sales.

The stock has bounced off its 52-week lows from mid-June when Eli Lilly’s (NYSE: LLY) Cymbalta was approved by the FDA for FM. The two drugs work similar, although Cymbalta is already approved and the FM indication was merely a label expansion for LLY. However, most analysts concluded that milnacipran …