Ramius Makes Unsolicited Bid for Cypress Bioscience
Summary
Ramius Makes Unsolicited Bid for Cypress Bioscience Xconomy San Diego — An activist investment fund managed by Ramius, a New York multi-fund hedge fund, pounced on Cypress Bioscience (NASDAQ: CYPB) today, offering to pay almost $160 million in cash to acquire the San Diego biotech.The company specializes in developing drugs for unmet medical needs in pain management, physical medicine, and rehabilitation, including such challenging disorders as fibromyalgia and rheumatoid arthritis.Cypress also provides personalized medicine services, including a test that aids in the diagnosis and progress of rheumatoid arthritis.—Ramius is prepared to enter into immediate discussions with the board to structure a transaction that maximizes value for all shareholders —Ramius says it its willing to consider a structure that would allow Cypress to continue the development of the recently acquired BL-1020 drug candidate, if management can fund the required financing for the Phase IIb trial themselves or from a third party financing source.—Ramius demands that the Cypress board “cease and desist” from approving any additional acquisitions given the company’s “poor judgment” in making previous, “highly speculative” deals.