SAN DIEGO, Calif., May 12, 1999 (PRIMEZONE) -- The following is being issued by RichMark Capital, a member of the National Association of Securities Dealers, CRD number 43162.
RichMark Capital Corporation, an Investment Banking firm headquartered in Grapevine, Tex., with an office in San Diego, Calif., today issued a Buy Recommendation on Cypros Pharmaceutical Corporation (AMEX:CYP) and initiated coverage on the Company. Cypros Pharmaceutical Corp., headquartered in Carlsbad, Calif., is a leader in the development and marketing of small molecule therapeutic drugs that protect cells from ischemic injury in conditions such as stroke or heart attack.
In the report, RichMark says Cypros has been granted expedited development status by the U.S. Food and Drug Administration for its late stage drugs, Cordox(tm), having entered Phase III clinical trials, and Ceresine(tm), having finished Phase II.
"Cypros Pharmaceutical Corporation has structured itself to operate under a dual strategy, in which the cash flow generation of its specialty pharmaceutical business is targeted towards helping to support the cash burn of its new drug development," the RichMark report says. It stresses that "in the process of selling its current specialty pharmaceutical products into the hospital market, the Company is laying the foundation of a customer base for its future drugs under development and in clinical trials."
"Our investment thesis holds that Cypros' evaluation should approximate those of its peers, other late stage drug development companies," Richmark says.
The 19-page research report, by research analyst Lynn Trepp, is a Buy rating for Aggressive Growth investors, with an 18-month price objective of $9.00.
Copies of the report are available from RichMark Capital Corporation in the San Diego office at (619) 551-7740.