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Stock of biotech Cypress Bioscience plummeted 37.79% today (June 21) after the company announced a deal to purchase rights to market a potential schizophrenia drug that is currently in mid-stage development. Cypress will pay Israel-based BioLineRx $30 million upfront for the rights. Additional clinical and regulatory milestone payments could reach $160 million, according to Yahoo! Finance. And Cypress could also make $175 million in payments to cover sales milestones and approvals for expanded use of the drug, according to Yahoo! Finance. Cypress stock closed at $2.70, its lowest level in about seven years. Analysts said the market probably disliked Cypress shoveling out this kind of money for a potentially risky venture.
Stock of biotech Cypress Bioscience plummeted 37.79% today (June 21) after the company announced a deal to purchase rights to market a potential schizophrenia drug that is currently in mid-stage development. Cypress will pay Israel-based BioLineRx $30 million upfront for the rights. Additional clinical and regulatory milestone payments could reach $160 million, according to Yahoo! Finance. And Cypress could also make $175 million in payments to cover sales milestones and approvals for expanded use of the drug, according to Yahoo! Finance. Cypress stock closed at $2.70, its lowest level in about seven years. Analysts said the market probably disliked Cypress shoveling out this kind of money for a potentially risky venture.