Ramius increases unsolicited offer for Cypress Biosciences to $5.50 a share

Shares in USA-based biotech firm Cypress Biosciences (Nasdaq: CYPB) leapt 20% to $4.88 on Friday after investment advisor Ramius V&O Acquisition, which already owns 9.9% of the company, raised its earlier unsolicited bid from the original $4 a share, later upped to $4.25 in a tender offer which expired on December 10, and now to $5.50, valuing the company at some $212 million (The Pharma Letter July 20)

Cypress, which - as this story went on line - acknowledged receipt of the increased offer but said no more as to a decision, reported total revenues of $8 million for the third quarter of 2010, and a net loss of $40.1 million, or $1.04 per share for that period, but said that, at end September, it held cash, equivalents and investments totalling $96.3 million.
In a letter to the Cypress board, Ramius said the offer is conditioned on Cypress commencing exclusive negotiations with Ramius no later than Friday, December 10, 2010 and entering into a definitive merger agreement by no later than Sunday, December 12, 2010. This offer was first communicated to Cypress' financial advisors on December 9, 2010.

Ramius said it believes that the $5.50 offer will enable the board to bring its exploration of all strategic alternatives to a prompt conclusion with a transaction that provides stockholders with a high degree of certainty that they will receive immediate full and fair value for their shares.