-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QhvvRMAYeoLfquSubVOcTMWGFlqo2EnzKy/iBUx/DFndhhagw5Y8ORWM3mZhVOya zWUvSyagQYeGG62gTwsz6w== 0000922423-99-000804.txt : 19990623 0000922423-99-000804.hdr.sgml : 19990623 ACCESSION NUMBER: 0000922423-99-000804 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19990621 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: CYPRESS BIOSCIENCE INC CENTRAL INDEX KEY: 0000716054 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] IRS NUMBER: 222389839 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: SEC FILE NUMBER: 005-35589 FILM NUMBER: 99649459 BUSINESS ADDRESS: STREET 1: 4350 EXECUTIVE DRIVE,SUITE 325 CITY: SAN DIEGO STATE: CA ZIP: 92121 BUSINESS PHONE: 2062989400 MAIL ADDRESS: STREET 1: 401 QUEEN ANNE AVE NORTH CITY: SEATTLE STATE: WA ZIP: 98109 FORMER COMPANY: FORMER CONFORMED NAME: IMRE CORP DATE OF NAME CHANGE: 19920703 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: ARIES FINANCIAL SERVICES INC CENTRAL INDEX KEY: 0001007000 STANDARD INDUSTRIAL CLASSIFICATION: [] FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 375 PARK AVENUE STREET 2: SUITE 1501 CITY: NEW YORK STATE: NY ZIP: 10152 BUSINESS PHONE: 2128324379 SC 13D/A 1 CYPRESS BIOSCIENCE, INC. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D (Amendment No.3) Under the Securities Exchange Act of 1934 Cypress Bioscience, Inc. --------------------------------- (Name of Issuer) Common Stock, par value $.02 per share -------------------------------------- (Title of Class of Securities) 2 232674 101 ---------------------------- (CUSIP Number) Paramount Capital Asset Management, Inc. c/o Lindsay A. Rosenwald, M.D. 787 Seventh Avenue New York, NY 10019 (212) 554-4300 with a copy to: Michael S. Weiss Paramount Capital Asset Management, Inc. 787 Seventh Avenue New York, NY 10019 (212) 554-4372 ------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) April 15, 1999 ----------------------------- (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following:[ ] - ---------------------- CUSIP No. 2 232674 101 13D - ---------------------- - -------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Paramount Capital Asset Management, Inc. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[ ] (b)[ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO (see Item 3 below) - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES None -------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY 11,994,002 /1/ -------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING None -------------------------------------------- PERSON 10 SHARED DISPOSITIVE POWER WITH 11,994,002 /1/ - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11,994,002 /1/ - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 26.2% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- - -------------- /1/ Includes 33,600 shares of Common Stock of the Issuer owned by Aries Domestic Fund II, L.P., a Delaware limited partnership. Paramount Capital Asset Management, Inc. serves as the general partner of the Aries Domestic Fund II, L.P. and has voting and dispositive power of such shares. 2 - ---------------------- CUSIP No. 2 232674 101 13D - ---------------------- - -------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Aries Domestic Fund, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[ ] (b)[ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO (see Item 3 below) - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES None -------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY 3,512,163 -------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING None -------------------------------------------- PERSON 10 SHARED DISPOSITIVE POWER WITH 3,512,163 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,512,163 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.6% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- 3 - ---------------------- CUSIP No. 2 232674 101 13D - ---------------------- - -------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON The Aries Master Fund - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[ ] (b)[ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO (see Item 3 below) - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES None -------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY 8,448,239 -------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING None -------------------------------------------- PERSON 10 SHARED DISPOSITIVE POWER WITH 8,448,239 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,448,239 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 18.4% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO (see Item 2) - -------------------------------------------------------------------------------- 4 - ---------------------- CUSIP No. 2 232674 101 13D - ---------------------- - -------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Lindsay A. Rosenwald, M.D. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[ ] (b)[ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO (see Item 3 below) - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES None -------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY 11,994,002 /2/ -------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING None -------------------------------------------- PERSON 10 SHARED DISPOSITIVE POWER WITH 11,994,002 /2/ - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11,994,002 /2/ - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 26.2% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- - -------------------- /2/ Includes 33,600 shares of Common Stock of the Issuer owned by Aries Domestic Fund II, L.P., a Delaware limited partnership. Dr. Rosenwald is the Chairman of Paramount Capital Asset Management, Inc., which serves as the general partner of the Aries Domestic Fund II, L.P. As such, Dr. Rosenwald may be deemed to have voting and dispositive power of such shares. 5 Item 1. Security and Issuer. ------------------- (a) Common Stock, $0.02 par value ("Shares") Cypress Bioscience, Inc. (the "Issuer") 4350 Executive Drive, Suite 325 San Diego, CA 92121 (619) 452-2323 Item 2. Identity and Background. ----------------------- Names of Persons Filing: (a) This statement is filed on behalf of Paramount Capital Asset Management, Inc. ("Paramount Capital"), Aries Domestic Fund, L.P. ("Aries Domestic"), Aries Master Fund, a Cayman Island exempted company ("Aries Fund") and Lindsay A. Rosenwald, M.D. ("Dr. Rosenwald" and collectively, "Reporting Parties"). See attached Exhibit A which is a copy of their agreement in writing to file this statement on behalf of each of them. (b) Paramount Capital's, Aries Domestic's and Dr. Rosenwald's business address is 787 Seventh Avenue, 48th Floor, New York, New York, 10019. The business address for Aries Fund is c/o MeesPierson (Cayman) Limited, P.O. Box 2003, British American Centre, Phase 3, Dr. Roy's Drive, George Town, Grand Cayman. (c) Dr. Rosenwald is an investment banker, venture capitalist, fund manager and sole shareholder of Paramount Capital, /3/ a Subchapter S corporation incorporated in Delaware. Paramount Capital is the General Partner of Aries Domestic, /4/ a limited partnership incorporated in Delaware. Paramount Capital is the Investment Manager to Aries Fund, /5/ a Cayman Islands exempted company. (d) Dr. Rosenwald, Paramount Capital, Aries Domestic and Aries Fund and their respective officers, directors, general partners, investment managers, or trustees have not, during the five years prior to the date hereof, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). (e) Dr. Rosenwald, Paramount Capital, Aries Domestic and Aries Fund and their respective officers, directors, general partners, investment managers, or trustees have not been, during the five years prior to the date hereof, parties to a civil proceeding of a judicial or administrative body of competent jurisdiction, as a result of which such person was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, Federal or State securities laws or finding any violation with respect to such laws. (f) Dr. Rosenwald is a citizen of the United States. Item 3. Source and Amount of Funds or Other Consideration. ------------------------------------------------- Since the date of Amendment No. 2 to Schedule 13D ("Amendment No. 2") which was filed on March 9, 1999, Aries Domestic used its general funds to make certain open market acquisitions of the securities of the Issuer and the Aries Fund used its general funds to make certain open market acquisitions of the securities of the Issuer as more fully set forth in - --------------------------- /3/ Please see attached Exhibit B indicating the executive officers and directors of Paramount Capital and providing information called for by Items 2-6 of this statement as to said officers and directors. Exhibit B is herein incorporated by reference. /4/ Please see attached Exhibit C indicating the general partner of Aries Domestic and the general partner's executive officers and directors and providing information called for by Items 2-6 of this statement as to said general partners, officers and directors. Exhibit C is herein incorporated by reference. /5/ Please see attached Exhibit D indicating the investment manager of the Aries Fund and the investment manager's executive officers and directors and providing information called for by Items 2-6 of this statement as to said investment manager and officers and directors. Exhibit D is herein incorporated by reference. 6 Item 5. Aries Domestic Fund II, L.P., a Delaware limited partnership for which Paramount Capital serves as general partner also used its general funds to make certain open market acquisitions of the securities of the Issuer as more fully set forth in Item 5. Further, on April 15, 1999, the Issuer caused 173,333 shares of Series A Preferred Stock held by Aries Domestic and 493,334 shares of Series A Preferred Stock held by the Aries Fund to be converted into shares of Common Stock. On the same date, Aries Domestic exercised warrants to purchase 37,500 shares of Common Stock at an exercise price equal to $1.00 per share and the Aries Fund exercised warrants to purchase 87,500 shares of Common Stock at an exercise price equal to $1.00 per share. Item 4. Purpose of Transaction. ----------------------- The Reporting Parties acquired shares of Common Stock of the Issuer as an investment in the Issuer. Although the Reporting Parties have not formulated any definitive plans, they may from time to time acquire, or dispose of, Common Stock and/or other securities of the Issuer if and when they deem it appropriate. The Reporting Parties may formulate other purposes, plans or proposals relating to any of such securities of the Issuer to the extent deemed advisable in light of market conditions, investment policies and other factors. Except as indicated in this Schedule 13D, the Reporting Parties currently have no plans or proposals that relate to or would result in any of the matters described in subparagraphs (a) through (j) of Item 4 of Schedule 13D. Item 5. Interest in Securities of the Issuer. ------------------------------------ (a) As of June 15, 1999, Dr. Rosenwald and Paramount Capital, through acquisition of the shares by the Aries Fund and Aries Domestic, beneficially owned 11,994,002 shares or 26.2% of the Issuer's securities and Aries Domes tic and the Aries Fund beneficially owned as follows: Amount Owned ------------ Aries Domestic 3,512,163 Shares Aries Fund 8,448,239 Shares (b) Dr. Rosenwald and Paramount Capital share the power to vote or to direct the vote, to dispose or to direct the disposition of those shares owned by each of Aries Domestic and Aries Fund. (c) The following purchases were made by Aries Domestic in the open market since the filing of Amendment No. 2: Date Amount Price Per Share ---- ------ --------------- 03/10/1999 6000 $3.250 03/11/1999 6,000 $3.360 03/12/1999 6,000 $3.500 03/15/1999 4,800 $3.580 03/16/1999 4,500 $3.990 03/17/1999 1,500 $5.060 03/17/1999 15,000 $3.820 03/17/1999 9,000 $4.040 03/18/1999 12,000 $3.820 03/19/1999 13,500 $3.940 03/22/1999 3,000 $3.700 03/23/1999 3,000 $3.450 03/23/1999 3,000 $3.450 03/24/1999 3,000 $3.410 03/24/1999 6,000 $3.320 03/25/1999 3,000 $3.340 03/25/1999 6,000 $3.420 03/26/1999 15,000 $3.680 03/29/1999 9,000 $3.870 03/30/1999 12,000 $3.830 7 03/31/1999 24,000 $3.780 04/05/1999 9,000 $3.610 04/06/1999 9,000 $3.500 04/07/1999 9,000 $3.470 04/08/1999 9,000 $3.550 04/09/1999 15,000 $3.560 04/12/1999 6,000 $3.530 04/13/1999 9,000 $3.500 04/14/1999 6,000 $3.460 04/15/1999 6,000 $3.550 04/16/1999 4,500 $3.690 04/16/1999 9,000 $3.670 04/19/1999 4,500 $3.560 04/20/1999 7,000 $3.380 04/21/1999 4,500 $3.420 04/22/1999 1,500 $3.450 04/22/1999 3,600 $3.440 04/23/1999 6,000 $3.590 04/23/1999 1,500 $3.540 04/26/1999 3,000 $3.630 04/27/1999 3,000 $3.900 04/27/1999 1,500 $3.990 04/28/1999 3,000 $3.840 04/28/1999 7,500 $3.770 04/29/1999 1,500 $3.860 04/30/1999 3,000 $3.780 04/30/1999 3,000 $3.810 04/30/1999 10,500 $3.840 05/04/1999 1,490 $3.810 05/06/1999 2,970 $3.920 05/10/1999 1,480 $4.000 05/11/1999 1,480 $3.870 05/11/1999 1,480 $4.000 05/12/1999 2,970 $3.830 05/13/1999 1,480 $3.840 05/14/1999 14,850 $3.840 05/17/1999 1,480 $3.840 05/18/1999 2,970 $3.780 05/18/1999 1,480 $3.880 05/19/1999 2,700 $3.690 05/20/1999 1,485 $3.790 05/21/1999 7,420 $3.680 05/24/1999 2,970 $3.600 05/24/1999 2,970 $3.560 05/25/1999 1,480 $3.590 05/25/1999 2,970 $3.580 05/26/1999 2,970 $3.440 05/26/1999 4,450 $3.440 05/27/1999 2,970 $3.430 05/27/1999 10,400 $3.510 8 05/28/1999 2,970 $3.590 05/28/1999 5,940 $3.540 05/28/1999 2,970 $3.590 06/01/1999 1,480 $3.430 06/02/1999 5,940 $3.200 06/02/1999 5,080 $3.160 06/03/1999 5,940 $3.380 06/03/1999 4,460 $3.346 06/04/1999 1,490 $3.406 06/04/1999 5,940 $3.430 06/04/1999 5,940 $3.480 06/07/1999 5,970 $3.422 06/07/1999 1,485 $3.435 06/08/1999 1,770 $3.375 06/09/1999 2,970 $3.500 06/09/1999 1,490 $3.469 06/10/1999 4,460 $3.367 06/10/1999 4,460 $3.393 06/11/1999 4,460 $3.426 06/11/1999 5,940 $3.456 06/11/1999 2,970 $3.438 06/14/1999 4,450 $3.310 06/14/1999 2,970 $3.377 06/15/1999 2,970 $3.188 The following purchases were made by the Aries Fund in the open market since the filing of Amendment No. 2: Date Amount Price Per Share ---- ------ --------------- 03/10/1999 14000 $3.248 03/11/1999 14,000 $3.359 03/12/1999 14,000 $3.500 03/15/1999 11,200 $3.583 03/16/1999 10,500 $3.993 03/17/1999 3,500 $5.063 03/17/1999 35,000 $3.815 03/17/1999 21,000 $4.042 03/18/1999 28,000 $3.823 03/19/1999 31,500 $3.935 03/22/1999 7,000 $3.703 03/23/1999 7,000 $3.454 03/23/1999 7,000 $3.454 03/24/1999 7,000 $3.406 03/24/1999 14,000 $3.317 03/25/1999 7,000 $3.344 03/25/1999 14,000 $3.424 03/26/1999 35,000 $3.678 03/29/1999 21,000 $3.868 03/30/1999 28,000 $3.828 03/30/1999 56,000 $3.778 04/05/1999 21,000 $3.613 9 04/06/1999 21,000 $3.500 04/07/1999 21,000 $3.473 04/08/1999 21,000 $3.548 04/09/1999 35,000 $3.559 04/12/1999 14,000 $3.533 04/13/1999 11,000 $3.503 04/14/1999 14,000 $3.457 04/15/1999 14,000 $3.547 04/16/1999 10,500 $3.692 04/16/1999 21,000 $3.667 04/19/1999 10,500 $3.560 04/20/1999 7,000 $3.378 04/21/1999 10,000 $3.424 04/22/1999 3,500 $3.447 04/22/1999 8,400 $3.438 04/23/1999 14,000 $3.589 04/23/1999 3,500 $3.543 04/26/1999 7,000 $3.626 04/27/1999 7,000 $3.904 04/27/1999 3,500 $3.985 04/28/1999 7,000 $3.835 04/28/1999 17,500 $3.770 04/29/1999 3,500 $3.856 04/30/1999 7,000 $3.781 04/30/1999 7,000 $3.813 04/30/1999 24,500 $3.840 05/04/1999 3,500 $3.810 05/06/1999 7,000 $3.920 05/07/1999 15,000 $3.975 05/07/1999 20,000 $3.971 05/10/1999 3,500 $3.998 05/11/1999 3,500 $3.873 05/11/1999 3,500 $4.000 05/12/1999 7,000 $3.826 05/13/1999 3,500 $3.841 05/14/1999 35,000 $3.835 05/17/1999 3,500 $3.844 05/18/1999 7,000 $3.779 05/18/1999 3,500 $3.875 05/19/1999 7,000 $3.693 05/20/1999 3,500 $3.791 05/21/1999 17,500 $3.677 05/24/1999 7,000 $3.597 05/24/1999 7,000 $3.563 05/25/1999 3,500 $3.589 05/25/1999 7,000 $3.580 05/26/1999 7,000 $3.444 05/26/1999 10,500 $3.440 05/26/1999 3,000 $3.440 05/27/1999 7,000 $3.426 10 05/27/1999 24,500 $3.505 05/28/1999 7,000 $3.590 05/28/1999 14,000 $3.535 05/28/1999 7,000 $3.590 06/01/1999 3,500 $3.430 06/02/1999 14,000 $3.200 06/02/1999 11,970 $3.160 06/03/1999 14,000 $3.380 06/03/1999 10,500 $3.346 06/04/1999 3,500 $3.406 06/04/1999 14,000 $3.430 06/04/1999 14,000 $3.480 06/07/1999 7,000 $3.422 06/07/1999 3,500 $3.435 06/08/1999 4,200 $3.375 06/09/1999 7,000 $3.500 06/09/1999 3,500 $3.469 06/10/1999 10,500 $3.367 06/10/1999 10,500 $3.393 06/11/1999 10,500 $3.426 06/11/1999 14,000 $3.456 06/11/1999 7,000 $3.438 06/14/1999 10,500 $3.310 06/14/1999 7,000 $3.377 06/15/1999 7,000 $3.188 The following purchases were made by the Aries Domestic Fund II, L.P. in the open market since the filing of Amendment No. 2: Date Amount Price Per Share ---- ------ --------------- 05/03/1999 31600 $3.94 05/04/1999 10 $3.81 05/06/1999 30 $3.92 05/10/1999 20 $4.00 05/11/1999 20 $3.87 05/11/1999 20 $4.00 05/12/1999 30 $3.83 05/13/1999 20 $3.84 05/14/1999 150 $3.84 05/17/1999 20 $3.84 05/18/1999 30 $3.78 05/18/1999 20 $3.88 05/19/1999 300 $3.69 05/20/1999 15 $3.79 05/21/1999 80 $3.68 05/24/1999 30 $3.60 05/24/1999 30 $3.56 05/25/1999 20 $3.59 05/25/1999 30 $3.58 05/26/1999 30 $3.44 11 05/26/1999 50 $3.44 05/27/1999 30 $3.43 05/27/1999 100 $3.51 05/28/1999 60 $3.59 05/28/1999 30 $3.54 05/28/1999 30 $3.59 06/01/1999 20 $3.430 06/02/1999 60 $3.200 06/02/1999 50 $3.160 06/03/1999 60 $3.380 06/03/1999 40 $3.346 06/04/1999 10 $3.406 06/04/1999 60 $3.430 06/04/1999 60 $3.480 06/07/1999 30 $3.422 06/07/1999 15 $3.435 06/08/1999 30 $3.375 06/09/1999 30 $3.500 06/09/1999 10 $3.469 06/10/1999 40 $3.367 06/10/1999 40 $3.393 06/11/1999 40 $3.426 06/11/1999 60 $3.456 06/11/1999 30 $3.438 06/14/1999 50 $3.310 06/14/1999 30 $3.377 06/15/1999 30 $3.188 Other than as set forth herein the Reporting Parties have not engaged in any transactions in the Common Stock of the Issu er since the last filing. (d) & (e) Not applicable. Item 6. Contracts, Arrangements, Understandings or Relationships with respect to Securities of the Issuer ------------------------------------------------------------------------ Paramount Capital is the investment manager of the Aries Fund and the General Partner of Aries Domestic and in such capacities has the authority to make certain investment decisions on behalf of such entities, including decisions relating to the securities of the Issuer. In connection with its investment management duties, Paramount Capital receives certain management fees and performance allocations from the Aries Fund and Aries Domestic. Dr. Rosenwald is the sole shareholder of Paramount Capital. Except as indicated in this 13D and exhibits, there is no contract, arrangement, under standing or relationship between the Reporting Parties and any other person, with respect to any securities of the Issuer. Item 7. Material to be Filed as Exhibits: --------------------------------- Exhibit A - Copy of an Agreement between Dr. Rosenwald, Paramount Capital, Aries Domestic and Aries Fund to file this Statement on Schedule 13D on behalf of each of them. Exhibit B - List of executive officers and directors of Paramount Capital and information called for by Items 2-6 of this statement relating to said officers and directors. Exhibit C - List of executive officers and directors of Aries Domestic and information called for by Items 2-6 of this statement relating to said officers and directors. 12 Exhibit D - List of executive officers and directors of Aries Fund and information called for by Items 2-6 of this statement relating to said officers and directors. 13 SIGNATURES ---------- After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. PARAMOUNT CAPITAL ASSET MANAGEMENT, INC. Dated: June 15, 1999 New York, NY By /s/ Lindsay A. Rosenwald, M.D. ------------------------------ Lindsay A. Rosenwald, M.D. Chairman ARIES DOMESTIC FUND By Paramount Capital Asset Management, Inc. General Partner Dated: June 15, 1999 New York, NY By /s/ Lindsay A. Rosenwald, M.D. ------------------------------ Lindsay A. Rosenwald, M.D. Chairman THE ARIES MASTER FUND By Paramount Capital Asset Management, Inc. Investment Manager Dated: June 15, 1999 New York, NY By /s/ Lindsay A. Rosenwald, M.D. ------------------------------ Lindsay A. Rosenwald, M.D. Chairman Dated: June 15, 1999 New York, NY By /s/ Lindsay A. Rosenwald, M.D. ------------------------------ Lindsay A. Rosenwald, M.D. 14 EXHIBIT A AGREEMENT JOINT FILING OF SCHEDULE 13D The undersigned hereby agrees to jointly prepare and file with regulatory authorities a Schedule 13D and any future amendments thereto reporting each of the undersig ned's ownership of securities of Cypress Bioscience, Inc., and hereby affirm that such Schedule 13D is being filed on behalf of each of the undersigned. PARAMOUNT CAPITAL ASSET MANAGEMENT, INC., INC. Dated: June 15, 1999 New York, NY By /s/ Lindsay A. Rosenwald. M.D. ------------------------------- Lindsay A. Rosenwald, M.D. Chairman ARIES DOMESTIC FUND, L.P. By Paramount Capital Asset Management, Inc. General Partner Dated: June 15, 1999 New York, NY By /s/ Lindsay A. Rosenwald M.D. ------------------------------- Lindsay A. Rosenwald, M.D. Chairman THE ARIES MASTER FUND By Paramount Capital Asset Management, Inc. Investment Manager Dated: June 15, 1999 New York, NY By /s/ Lindsay A. Rosenwald, M.D. ------------------------------- Lindsay A. Rosenwald, M.D. Chairman Dated: June 15, 1999 New York, NY By /s/ Lindsay A. Rosenwald, M.D. ------------------------------- Lindsay A. Rosenwald, M.D. 15 EXHIBIT B The name and principal occupation or employment, which in each instance is with Paramount Capital Asset Management, Inc. ("Paramount Capital") located at 787 Seventh Avenue, 48th Floor, New York, New York, 10019, of each executive officer and director of Paramount Capital is as follows: PRINCIPAL OCCUPATION NAME OR EMPLOYMENT ---- ------------- Lindsay A. Rosenwald, M.D. Chairman of the Board of Paramount Capital Asset Management, Inc., Paramount Capital Investments, LLC and Paramount Capital, Inc. Mark C. Rogers, M.D. President of Paramount Capital Asset Management, Inc., Paramount Capital Investments, LLC and Paramount Capital, Inc. Peter Morgan Kash Director of Paramount Capital Asset Management, Inc., Senior Managing Director, Paramount Capital, Inc. Dr. Yuichi Iwaki Director of Paramount Capital Asset Management, Inc., Professor, University of Southern California School of Medicine Item 2. During the five years prior to the date hereof, none of the above persons (to the best of Paramount Capital's knowledge) was convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction, as a result of which such person was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, Federal or State securities laws or finding any violation with respect to such laws. Items 3-6. Please refer to Items 3-6 herein reporting the beneficial ownership. 16 EXHIBIT C The name and principal occupation or employment, which is located at 787 Seventh Avenue, 48th Floor, New York, New York, 10019, of the General Partner of Aries Domestic is as follows: PRINCIPAL OCCUPATION NAME OR EMPLOYMENT ---- ------------- Paramount Capital Asset Management, Inc. General Partner; Investment Manager Exhibit B is hereby incorporated by reference. Item 2. During the five years prior to the date hereof, the above person (to the best of Aries Domestic's knowledge) has not been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction, as a result of which such person was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, Federal or State securities laws or finding any violation with respect to such laws. Items 3-6. Please refer to Items 3-6 herein reporting the beneficial ownership. 17 EXHIBIT D The name and principal occupation or employment, which in each instance is with The Aries Master Fund ("Aries Fund") located at 787 Seventh Avenue, 48th Floor, New York, New York, 10019, of each executive officer and director of Aries Trust is as follows: PRINCIPAL OCCUPATION NAME OR EMPLOYMENT ---- ------------- Paramount Capital Asset Management, Inc. Investment Manager MeesPierson (Cayman) Management Limited Administrator Exhibit B is hereby incorporated by reference. Item 2. During the five years prior to the date hereof, neither of the above persons (to the best of Aries Fund's knowledge) have been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction, as a result of which such person was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, Federal or State securities laws or finding any violation with respect to such laws. Items 3-6. Please refer to Items 3-6 herein reporting the beneficial ownership. 18 -----END PRIVACY-ENHANCED MESSAGE-----