SANTA ANA, Calif., Aug. 5, 1999 (PRIMEZONE) -- The following is being issued by Donner Corporation International, a member of the National Association of Securities Dealers, CRD number 37702.
Donner Corp. International, an Investment Banking firm headquartered in Santa Ana, Calif., today reiterated its Strong Buy Recommendation on Cypros Pharmaceutical Corporation (AMEX:CYP), San Diego, Ca. Donner said the decision is based on the announcement today that Cypros has signed a definitive merger agreement with RiboGene, Inc., of Hayward, Ca., (AMEX:RBO).
"We believe the merger will allow the new company to fully capitalize on current product development and marketing opportunities," Donner said. "RiboGene brings a strong balance sheet to the merger, which will help both companies bring their phase III products through clinical trials to the launch stage. The merger creates a company with a portfolio of near-term value drivers. This is unusual in the biotechnology industry and in our view deserves investor appeal."
The Donner report said the merged companies are dedicated to continuing to promote the four products currently marketed in the U.S. and a fifth product marketed through partners in Italy. "We view this as a positive. Combined with the companies' stated goals to consolidate parts of their businesses, including the headquarters and workforce, we believe that the new, more efficient company will be better able to aggressively move its business strategy forward."
"We are pleased that the two companies have significant collaborative relationships with leading companies, including ArQule, Inc., Roberts Pharmaceutical, Pharmacopeia and Nurtamax," Donner said.
Copies of the Donner report on Cypros are available at 1-800-324-6050.
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(The information contained herein is based on sources believed to be reliable but is not guaranteed by this company and is not comprehensive. It is not to be construed as an offer or the solicitation of an offer to sell or buy securities mentioned herein. The Company, its members, affiliates and employees may have long or short positions, which could be substantial, in securities discussed or recommended and may purchase, sell, or trade these securities from time to time in the open market or otherwise. In addition, this Company may from time to time perform investment banking, corporate finance, provide services for, and solicit investment banking, corporate finance, or other business from the issuers of such securities.)