Buy Cypress Bioscience
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
Read the full analyst report on CYPR

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