Cypress Bioscience, Inc. (CYPB) reported a net loss of $0.94 per share in the third quarter, significantly higher than the Zacks Consensus Estimate and the year-ago loss of $0.12. Despite an increase in revenues, higher operating expenses led to the wider loss in the reported quarter.
Following the release of third quarter results, 2010 loss estimates for the company have increased significantly. We now expect the company to post a loss of $1.24, significantly higher than our previous loss estimate of $0.59 per share. Our loss estimate for 2011 has gone up by 3 cents to $0.15 per share.
While we expect the company’s restructuring initiative to help reduce operating costs, we remain concerned about the early-stage nature of the company’s pipeline and its dependence on Savella for growth. We are downgrading the stock to Underperform with a price target of $3.75.
CYPRESS BIOSCI (CYPB): Free Stock Analysis Report
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