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Cypress management to enhance the value of the company’s pipeline assets,” says Royalty Pharma CEO Pablo Legorreta in the same statement. “As the leading investor in biopharmaceutical royalties, we have a long history of working in partnerships with biotech companies and their management teams.”
Cypress acquired the exclusive rights to milnacipran (Savella) for any purpose in the United States and Canada in 2003 from Pierre Fabre, the French specialty drugmaker. Milnacipran was first approved in France for the treatment of depression. Cypress went on later, in January 2009, to win FDA clearance along with Forest Laboratories to start selling the drug for the treatment of fibromyalgia. Cypress announced in August that it was ending its commercial business, including milnacipran, as part of a reorganization. But the company retained its rights to milnacipran.
Daniel Petree, the lead independent director at Cypress, says the board spent more than two months conducting a comprehensive evaluation of the company’s strategic alternatives. “After thorough and extensive analysis with our financial advisors, Cypress’ Board unanimously concluded that this transaction with Ramius and Royalty Pharma provides significant cash value to our stockholders and is in the best interests of our stockholders, customers and employees.”