Cypress Bioscience Inc. (CYPB) shares jumped over 12% to $6.47 on heavy volume in late morning trading Wednesday. The maker of drugs for nervous system disorders agreed to be bought by Ramius V&O Acquisition LLC and Royalty Pharma for $6.50 a share in cash, or $255 million total.
Ramius said the buyout price represents a 160% premium over CYPB’s last closing pps before Ramius disclosed its intentions of buying the biotech company in mid-July.
More than 12 million CYPB shares have already changed hands, compared to a daily average of around 560,000.
Over the past 12 months Cypress shares have traded between $2.06 and its Dec. 23, 2009, 52-week high of $6.28. CYPB shares are now trading with a negative P/E to Growth Ratio of 0.30 and EPS of -1.36.
Cypress gained $0.70, or 12.26 percent, to $6.75 at 1:23 p.m. EST in Nasdaq composite trading.