Cypress Bioscience Inc. capitalized quickly on its significant stock gain last week, raising $72.9 million in a public offering of stock.

Cypress, of San Diego, sold 4.7 million shares from an effective shelf registration statement at $15.50 per share. Its shares on May 23 gained $7.92, or 94 percent, to close at $16.37 following positive data from a Phase III trial of milnacipran in fibromyalgia. The stock (NASDAQ:CYPB) fell $1.17 Thursday to close at $15.14.

Cypress and partner Forest Laboratories Inc., of New York, plan to file a new drug application for milnacipran by the end of the year. Following the positive Phase III results, Cypress was entitled to receive reimbursement of certain clinical trial costs as well as its first milestone payment from Forest under their potential $250 million partnership from 2004. Cypress also has a co-promotion option on the product. (See BioWorld Today, May 24, 2007.)

Cypress had not decided whether to exercise that co-promotion option, but said some of the proceeds could go toward that if the product were approved and it exercised that option. It also said it intends to acquire, in-license or invest in complementary products, product candidates, technologies and companies. Following the offering, Cypress had about 37 million shares outstanding. It had about $102.3 million in cash as of March 31, and reported a loss of $1.1 million in the first quarter.

UBS Investment Bank is sole book-running manager for the offering. CIBC World Markets and Jefferies & Co. are co-lead managers. They have an option to purchase up to 705,000 additional shares to cover overallotments.

In other financing news:

• Ception Therapeutics Inc., of Malvern, Pa., raised an additional $14.7 million in its Series C financing round, bringing the round's total to $77 million. The company in January announced the initial $63 million investment. Participants in the add-on funding included existing investors Third Point LLC and Greenlight Capital. Ception is developing products for inflammatory and other diseases through its thermodynamics-based rational drug design platform. (See BioWorld Today, Jan. 31, 2007.)

• Advanced BioHealing Inc., of La Jolla, Calif., raised an additional $4.5 million in a second tranche of its Series C financing, bringing the round's total to about $30 million. The company in February announced the first part of the Series C round, a $25.4 million investment. New money was provided by Safeguard Scientifics Inc. and CDIB BioScience Ventures. Advanced BioHealing last year acquired the Dermagraft, and three months ago reintroduced it to the U.S. market. The product is approved as a treatment for full-thickness diabetic foot ulcers. (See BioWorld Today, March 1, 2007.)

• Jazz Pharmaceuticals Inc., of Palo Alto, Calif., lowered the price range for its proposed initial public offering to $20 to $21 per share, down from an earlier estimated price of $24 to $26 per share. It still intends to offer 6 million shares. Jazz registered earlier this year for an IPO to raise up to $172.5 million. (See BioWorld Today, March 12, 2007.)

• Quest PharmaTech Inc., of Edmonton, Alberta, said it received TSX Venture Exchange approval for the first tranche - C$750,000 (US$700,000) - of a private placement to issue up to 6.67 million common shares at C$0.15 per share, for total gross proceeds of up to C$1 million. A European private equity investor purchased 5 million shares for C$750,000, gaining a 9.7 percent stake in Quest. The company is developing products for cancer and dermatological conditions based on its photodynamic and sonodynamic therapy platform.

• CardioMetabolics Inc., of Edmonton, Alberta, secured C$4.1 million (US$3.8 million) in financing to advance work on drug candidates for treating cardiovascular disease and related metabolic conditions, such as diabetes. The financing was led by Canaccord Capital Corp. The privately held company's technology is focused on the metabolic modulator, dichloroacetate, and related compounds believed to positively impact the metabolism of energy. The lead candidate is being developed to improve outcomes and recovery times for patients undergoing open-heart surgical procedures.

• Sinobiomed Inc., of Shanghai, China, said it recently closed two private placements, one of which was in a series of four tranches. Gross proceeds for 9.29 million units sold were $9.68 million. Each unit consists of one common share and half a warrant. Each whole warrant entitled the holder to purchase one additional share for two years. The company develops genetically engineered recombinant protein drugs and vaccines. Some proceeds, it said, would be used to acquire a pharmaceutical distribution firm in order to enhance its sales and marketing capabilities throughout China.

• HalcyGen Pharmaceuticals Ltd., of Melbourne, Australia, said it is raising A$12.5 million (US$10.3 million) in an initial public offering in Australia. The company is developing "SuperGenerics" versions of two anti-infective drugs it licensed from Mayne Pharma International, of Melbourne. HalcyGen said its products offer the potential for patent protection and premium pricing through improvement of formulation and delivery. The issue of 25 million shares in at A$0.50 each was fully underwritten by Tolhurst Ltd. The deal was expected to close June 19. It would have 76 million shares outstanding.

• Halozyme Therapeutics Inc., of San Diego, completed a previously disclosed $32.1 million private placement of 3.5 million common shares at $9.17 per share, which were purchased by New River Management V LP. The per-share price was a 22-cent premium to the stock's closing price when the deal was made. Halozyme is developing and commercializing recombinant human enzymes for the drug delivery, palliative care, oncology and infertility markets. (See BioWorld Today, April 25, 2007.)