Cypress Bioscience Inc. said Friday it will sell its diagnostics business to Exagen Diagnostics Inc. in a deal that could be worth more than $8 million.
Cypress said it will receive $4 million for the business in two payments that will be made two years apart. It could also get as much as $4 million in milestone payments, and royalty payments of up to 10 percent on sales of some products. Exagen will get all the assets of the business and assume the leases for Cypress' laboratory operations, which are based in San Diego. All Cypress laboratory employees will be offered jobs with Exagen, Cypress said.
The company decided to sell the business earlier this year, and said the sale is not related to its search for strategic alternatives. Investment manager and shareholder Ramius Capital LLC has been trying to buy Cypress since July, but Cypress has said its offers were too low. Ramius offered $4 per share per share in July, and raised its offer to $4.25 per share in September. Ramius has taken its second offer directly to Cypress shareholders, but Cypress has adopted a "poison pill" measure intended to block a hostile buyout.
Ramius owns 9.9 percent of Cypress stock, and its new bid values the company at about $164 million. Its bid for Cypress shares is scheduled to close on Wednesday.
Cypress shares rose 6 cents to $3.95 Friday.
**Published in AP Press
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