Cypress Bioscience goes on a spending spree, gaining rights to autism product and Staccato nicotine technology

US central nervous system drug developer Cypress Bioscience (Nasdaq: CYPB) yesterday revealed two licensing deals to further strengthen its portfolio - one with Marian Biotech for an autism product and the other with Alexza Pharmaceutical for technology to help people wanting to stop smoking. The news pushed Marian's (Nasdaq: MRNAD) share price 7.4% higher to $3.41, while Alexza (Nasdaq: ALXA) edged up 0.7% to $2.81 and Cypress fell 3.8% to $3.58.

In the first deal, Cypress has acquired patent rights and technology related to a novel, intranasal formulation of carbetocin, a potential breakthrough treatment for the core symptoms of autism. The therapy, which was developed by Marina Biotech, expected to further strengthen Cypress' CNS pipeline.

Under the terms of the agreement, Cypress will make an upfront payment to Marina of $750,000. Subject to certain late-stage clinical and regulatory milestones, including approval in the USA, it may make up to $27 million in additional payments. Cypress will also fund all continuing development activities and pay single-digit royalties to Marina based on commercial sales, if any.