UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13G/A

Under the Securities Exchange Act of 1934

(Amendment No. 1)*

CYPRESS BIOSCIENCE, INC.

(Name of Issuer)

COMMON STOCK, PAR VALUE $0.001 PER SHARE

(Title of Class of Securities)

232674507

(CUSIP Number)

January 31, 2007

(Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

¨ Rule 13d-1(b)

x Rule 13d-1(c)

¨ Rule 13d-1(d)

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

CUSIP No. 232674507 Page 2 of 16 Pages

1.	Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only).             Visium Balanced Fund, LP
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a)  ¨ (b)  ¨
3.	SEC Use Only
4.	Citizenship or Place of Organization             Delaware

NUMBER OF   SHARES   BENEFICIALLY   OWNED BY   EACH   REPORTING   PERSON   WITH:	5.    Sole Voting Power         None
	6.    Shared Voting Power         104,365 (See Item 4)
	7.    Sole Dispositive Power         None
	8.    Shared Dispositive Power         104,365 (See Item 4)

9.	Aggregate Amount Beneficially Owned by Each Reporting Person             104,365 (See Item 4)
10.	Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)             Not Applicable	¨
11.	Percent of Class Represented by Amount in Row (9)             .32%
12.	Type of Reporting Person (See Instructions)             OO

CUSIP No. 232674507 Page 3 of 16 Pages

1.	Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only).             Visium Long Bias Fund, LP
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a)  ¨ (b)  ¨
3.	SEC Use Only
4.	Citizenship or Place of Organization             Delaware

NUMBER OF   SHARES   BENEFICIALLY   OWNED BY   EACH   REPORTING   PERSON   WITH:	5.    Sole Voting Power         None
	6.    Shared Voting Power         53,689 (See Item 4)
	7.    Sole Dispositive Power         None
	8.    Shared Dispositive Power         53,689 (See Item 4)

9.	Aggregate Amount Beneficially Owned by Each Reporting Person             53,689 (See Item 4)
10.	Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)             Not Applicable	¨
11.	Percent of Class Represented by Amount in Row (9)             .17%
12.	Type of Reporting Person (See Instructions)             OO

CUSIP No. 232674507 Page 4 of 16 Pages

1.	Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only).             Visium Balanced Offshore Fund, Ltd.
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a)  ¨ (b)  ¨
3.	SEC Use Only
4.	Citizenship or Place of Organization             Cayman Islands

NUMBER OF   SHARES   BENEFICIALLY   OWNED BY   EACH   REPORTING   PERSON   WITH:	5.    Sole Voting Power         None
	6.    Shared Voting Power         450,660 (See Item 4)
	7.    Sole Dispositive Power         None
	8.    Shared Dispositive Power         450,660 (See Item 4)

9.	Aggregate Amount Beneficially Owned by Each Reporting Person             450,660 (See Item 4)
10.	Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)             Not Applicable	¨
11.	Percent of Class Represented by Amount in Row (9)             1.40%
12.	Type of Reporting Person (See Instructions)             CO

CUSIP No. 232674507 Page 5 of 16 Pages

1.	Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only).             Visium Long Bias Offshore Fund, Ltd.
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a)  ¨ (b)  ¨
3.	SEC Use Only
4.	Citizenship or Place of Organization             Cayman Islands

NUMBER OF   SHARES   BENEFICIALLY   OWNED BY   EACH   REPORTING   PERSON   WITH:	5.    Sole Voting Power         None
	6.    Shared Voting Power         370,638 (See Item 4)
	7.    Sole Dispositive Power         None
	8.    Shared Dispositive Power         370,638 (See Item 4)

9.	Aggregate Amount Beneficially Owned by Each Reporting Person             370,638 (See Item 4)
10.	Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)             Not Applicable	¨
11.	Percent of Class Represented by Amount in Row (9)             1.15%
12.	Type of Reporting Person (See Instructions)             CO

CUSIP No. 232674507 Page 6 of 16 Pages

1.	Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only).             Visium Capital Management, LLC
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a)  ¨ (b)  ¨
3.	SEC Use Only
4.	Citizenship or Place of Organization             Delaware

NUMBER OF   SHARES   BENEFICIALLY   OWNED BY   EACH   REPORTING   PERSON   WITH:	5.    Sole Voting Power         None
	6.    Shared Voting Power         158,054 (See Item 4)
	7.    Sole Dispositive Power         None
	8.    Shared Dispositive Power         158,054 (See Item 4)

9.	Aggregate Amount Beneficially Owned by Each Reporting Person             158,054 (See Item 4)
10.	Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)             Not Applicable	¨
11.	Percent of Class Represented by Amount in Row (9)             .49%
12.	Type of Reporting Person (See Instructions)             OO

CUSIP No. 232674507 Page 7 of 16 Pages

1.	Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only).             Visium Asset Management, LLC
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a)  ¨ (b)  ¨
3.	SEC Use Only
4.	Citizenship or Place of Organization             Delaware

NUMBER OF   SHARES   BENEFICIALLY   OWNED BY   EACH   REPORTING   PERSON   WITH:	5.    Sole Voting Power         1,001,792 (See Item 4)
	6.    Shared Voting Power         None
	7.    Sole Dispositive Power         1,001,792 (See Item 4)
	8.    Shared Dispositive Power         None

9.	Aggregate Amount Beneficially Owned by Each Reporting Person             1,001,792 (See Item 4)
10.	Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)             Not Applicable	¨
11.	Percent of Class Represented by Amount in Row (9)             3.12%
12.	Type of Reporting Person (See Instructions)             OO

CUSIP No. 232674507 Page 8 of 16 Pages

1.	Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only).             Jacob Gottlieb
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a)  ¨ (b)  ¨
3.	SEC Use Only
4.	Citizenship or Place of Organization             United States

NUMBER OF   SHARES   BENEFICIALLY   OWNED BY   EACH   REPORTING   PERSON   WITH:	5.    Sole Voting Power         1,001,792 (See Item 4)
	6.    Shared Voting Power         None (See Item 4)
	7.    Sole Dispositive Power         1,001,792 (See Item 4)
	8.    Shared Dispositive Power         None (See Item 4)

9.	Aggregate Amount Beneficially Owned by Each Reporting Person             1,001,792 (See Item 4)
10.	Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)             Not Applicable	¨
11.	Percent of Class Represented by Amount in Row (9)             3.12%
12.	Type of Reporting Person (See Instructions)             IN

CUSIP No. 232674507 Page 9 of 16 Pages

Item 1 (a) Name of Issuer:

Cypress Bioscience, Inc. (the “Company”)

(b) Address of Issuer’s Principal Executive Offices:

4350 Executive Drive, Suite 325

San Diego, CA 92121

Item 2 (a) – (c) This statement is filed on behalf of the following:

(1) Visium Balanced Fund, LP, a Delaware limited partnership (“VBF”), with its principal business office at c/o Visum Asset Management, LLC, 950 Third Avenue, New York, NY 10022.

(6) Visium Long Bias Fund, LP, a Delaware limited partnership (“VLBF”), with its principal business office at c/o Visum Asset Management, LLC, 950 Third Avenue, New York, NY 10022.

(7) Visium Balanced Fund Offshore, Ltd., a Cayman Islands corporation (“VBFO”), with its principal business office at c/o Morgan Stanley Fund Services (Cayman) Limited, P.O. Box 2681GT, Century yard, 4^th Floor, Cricket Square, Hutchins Drive, Grand Cayman, Cayman Islands, British West Indies.

(8) Visium Long Bias Fund Offshore, Ltd., a Cayman Islands corporation (“VLBFO”), with its principal business office at c/o Morgan Stanley Fund Services (Cayman) Limited, P.O. Box 2681GT, Century yard, 4^th Floor, Cricket Square, Hutchins Drive, Grand Cayman, Cayman Islands, British West Indies.

(9) Visium Asset Management, LLC, a Delaware limited liability company (“VAM”), with its principal business office at Visum Asset Management, LLC, 950 Third Avenue, New York, NY 10022. VAM is the investment advisor to each of VBF, VLBF, VBFO and VLBFO.

(10) Visium Capital Management, LLC, a Delaware limited liability company (“VCM”), with its principal business office c/o Visum Asset Management, LLC, 950 Third Avenue, New York, NY 10022. VCM is the General Partner of VBF an VLBF.

CUSIP No. 232674507 Page 10 of 16 Pages

(d) Title of Class of Securities:

      Common Stock, Par Value $0.001 Per Share

(e) CUSIP Number:

      232674507

Item 3 If this statement is filed pursuant to Rule 13d-1(b), or 13d-2(b) or (c), check whether the person filing is a:

Not Applicable

VBF

(a) Amount Beneficially Owned:

      104,365 shares

(b) Percent of Class:

      .32%

(c) Number of Shares as to which person has:

(i) sole power to vote or to direct vote:

     None

(ii) shared power to vote or to direct vote:

     104,365 shares

(iii) sole power to dispose or direct disposition of:

     None

CUSIP No. 232674507 Page 11 of 16 Pages

(iv) shared power to dispose or to direct disposition of:

        104,365 shares

VLBF

(a) Amount Beneficially Owned:

        53,689 shares

(b) Percent of Class:

        .17%

(c) Number of Shares as to which person has:

(i) sole power to vote or to direct vote:

        None

(ii) shared power to vote or to direct vote:

        53,689 shares

(iii) sole power to dispose or direct disposition of:

        None

(iv) shared power to dispose or to direct disposition of:

        53,689 shares

VBFO

(a) Amount Beneficially Owned:

        450,660 shares

(b) Percent of Class:

        1.40%

CUSIP No. 232674507 Page 12 of 16 Pages

(c) Number of Shares as to which person has:

(i) sole power to vote or to direct vote:

        None

(ii) shared power to vote or to direct vote:

        450,660 shares

(iii) sole power to dispose or direct disposition of:

        None

(iv) shared power to dispose or to direct disposition of:

        450,660 shares

VLBFO

(a) Amount Beneficially Owned:

370,628 shares

(b) Percent of Class:

1.15%

(c) Number of Shares as to which person has:

(i) sole power to vote or to direct vote:

        None

(ii) shared power to vote or to direct vote:

        370,628 shares

(iii) sole power to dispose or direct disposition of:

        None

CUSIP No. 232674507 Page 13 of 16 Pages

(iv) shared power to dispose or to direct disposition of:

        370,628 shares

VAM

(a) Amount Beneficially Owned:

By virtue of its position as investment advisor to each of VBF, VLBF, VBFO and VLBFO, VAM may be deemed to beneficially own the 1,001,792 shares of the Company’s Common Stock beneficially owned by VBF, VLBF, VBFO and VLBFO.

(b) Percent of Class:

     3.12%

(c) Number of Shares as to which person has:

(i) sole power to vote or to direct vote:

        1,001,792 shares

(ii) shared power to vote or to direct vote:

        None

(iii) sole power to dispose or direct disposition of:

        1,001,792 shares

(iv) shared power to dispose or to direct disposition of:

        None

VCM

(a) Amount Beneficially Owned:

By virtue of its position as General Partner to each of VBF and VLBF, VCM may be deemed to beneficially own the 158,054 shares of the Company’s Common Stock beneficially owned by VBF and VLBF.

CUSIP No. 232674507 Page 14 of 16 Pages

(b) Percent of Class:

     .49%

(c) Number of Shares as to which person has:

(i) sole power to vote or to direct vote:

        None

(ii) shared power to vote or to direct vote:

        158,054 shares

(iii) sole power to dispose or direct disposition of:

        None

(iv) shared power to dispose or to direct disposition of:

        158,054 shares

Jacob Gottlieb

(a) Amount Beneficially Owned:

By virtue of his position as the principal of VAM and the sole managing member of VCM, Mr. Gottlieb may be deemed to beneficially own the 1,001,792 shares of the Company’s Common Stock beneficially owned by VAM.

(b) Percent of Class:

     3.12%

(c) Number of Shares as to which person has:

(i) sole power to vote or to direct vote:

        1,001,792 shares

(ii) shared power to vote or to direct vote:

CUSIP No. 232674507 Page 15 of 16 Pages

        None

(iii) sole power to dispose or direct disposition of:

        1,001,792 shares

(iv) shared power to dispose or to direct disposition of:

        None

Item 5 Ownership of Five Percent or Less of a Class:

Applicable

Item 6 Ownership of More than Five Percent on Behalf of Another Person:

Not Applicable

Item 7 Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company:

Not Applicable

Item 8 Identification and Classification of Members of the Group:

Not Applicable

Item 9 Notice of Dissolution of Group:

Not Applicable

Item 10 Certification:

By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.

CUSIP No. 232674507 Page 16 of 16 Pages

SIGNATURE

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.

Date: February 12, 2007

VISIUM ASSET MANAGEMENT, LLC		VISIUM LONG BIAS FUND, LP
By:	/s/ Mark Gottlieb	By:	/s/ Mark Gottlieb
	Mark Gottlieb Authorized Signatory		Mark Gottlieb Authorized Signatory
VISIUM BALANCED FUND, LP		VISIUM BALANCED OFFSHORE FUND, LTD.
By:	/s/ Mark Gottlieb	By:	/s/ Mark Gottlieb
	Mark Gottlieb Authorized Signatory		Mark Gottlieb Authorized Signatory
VISIUM CAPITAL MANAGEMENT, LLC		VISIUM LONG BIAS OFFSHORE FUND, LTD.
By:	/s/ Mark Gottlieb	By:	/s/ Mark Gottlieb
	Mark Gottlieb Authorized Signatory		Mark Gottlieb Authorized Signatory
JACOB GOTTLIEB
By:	/s/ Mark Gottlieb
	Mark Gottlieb Authorized Representative and Chief Compliance Officer