Cypress Bioscience's (Nasdaq: CYPB) stock soared 19% on Tuesday after the company rejected a $6-per-share cash bid from Ramius V&O Acquisition, a subsidiary of investment firm Ramius.
In a statement today, Ramius said that it received notice yesterday that its offer had been rejected by Cypress' board, and that the San Diego-based pharmaceutical company is "pursuing an alternative transaction with a third party".
Ramius, which currently owns 9.9% of Cypress, first made a bid for the company in July of $4 per share and increased the offer to $4.25 in September.
After both offers were rejected, Ramius attempted to bypass the board and go directly to Cypress' shareholders, prompting the company to adopt a "poison pill" - a strategy used to thwart hostile takeovers.
In January 2009, Cypress received approval from the U.S. FDA for its Savella drug, a treatment for the pain resulting from stress or muscle injury.
Cypress' development-stage assets include the CYP-1020 drug for treating cognitive impairment in schizophrenia, Staccato nicotine for smokers, and a drug for autism. The company's shares were trading at $5.70 as of 3:38 pm EST on Tuesday.