IMPORTANT NEWS RELEASE
Contact:
David W. Nassif
Vice President and Chief Financial Officer
(619) 929-9500

CYPROS PHARMACEUTICAL ACQUIRES ETHAMOLIN INJECTION;  PRODUCT
IS EXPECTED TO DOUBLE FISCAL 1997 SALES

CARLSBAD, CA (November 5, 1996)__Cypros Pharmaceutical
Corporation (NASDAQ: CYPR) announced today that it has
acquired the rights to Ethamolin Injection from Schwarz
Pharma, Inc. ("Schwarz") in an asset purchase for $3.2
million in staged payments.  Simultaneously, the Company
also entered into a threeyear agreement with Schering-Plough
Corporation for the manufacture of Ethamolin in finished
form. This acquisition continues the Cypros business
strategy to build a hospital sales force and near term
profitability around a critical mass of acquired products
that serves the same market as its own development-stage
products.

Ethamolin is an injectable drug approved by the U.S. Food
and Drug Administration for the treatment of varices that
bleed into the esophagus and stomach, an often fatal event.
This is common in patients with severe liver disease and
comprises 15-20% of all gastrointestinal hemorrhages.
Ethamolin is the only approved agent for this medical
condition.  Ethamolin is well established but underutilized
due to an absence of promotion efforts over the last few
years.  Since it is Cypros's third acute care drug on the
market, the Company will be devoting significant sales force
time and marketing effort to expanding the sales of
Ethamolin in the hospital setting.

In commenting on the announcement, Paul J. Marangos, Chief
Executive Officer, said, "Ethamolin should immediately
double the Company's revenues from product sales and
facilitate our sales force expansion.  This new addition to
our portfolio of marketed products will bring Cypros one
step closer to reaching its goal of profitability.
Additional acquisitions and late stage product development
opportunities are being evaluated to expand our nearterm
product portfolio and complement our internal clinical
programs."

Cypros Pharmaceutical develops cytoprotective drugs and
markets acute-care, hospital-based products.  The Company
has two clinical development programs and several drugs in
pre-clinical research.  Six Phase II trials are currently in
progress, which include four for CPC-111 (acute
complications of angioplasty, coronary artery bypass
grafting surgery, congestive heart failure and sickle cell
anemia crises), and two for CPC-211 (stroke and head
injury).  The Company also markets two intravenous agents
(Inulin and Glofil) used to assess kidney function.

This news release contains forward looking statements which
involve risks and uncertainties. Such statements are subject
to certain factors which may cause the Company's plans to
differ. Factors that may cause such differences include, but
are not limited to, the  risks discussed in the Company's
Form 10-K for the fiscal year ended July 31, 1996 and the
Risk Factors section of the Company's Registration Statement
No. 33-80645.