Cypress a top small biotech pick, says Zacks

Nasdaq-listed US firm Cypress Biosciences has announced the approval of Savella (milnacipran HCl) for the management of fibromyalgia in January  2009. Along with commercialization partner, Forest Labs, Cypress expects  the product to be commercially available around the middle of the year,  note analysts at Zacks Investment Research.

They say: "we think the approval of Savella is a transformational event  for Cypress. We see profitability in 2010 based on a strong ramp in  sales. By 2013, we think Cypress can generate revenues in excess of  $100.0 million from royalties and expense reimbursement associated with  Savella." They see fair value at $12 per share, or 25 times their 2013  earnings per share estimate of $1.14, discounted back to present day.  "The name is one of our top picks for small-cap biotech," the analysts  state.