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SuperGen Reports 2007 Fourth Quarter and Annual Financial Results
Date:3/3/2008

nse agreement with MGI PHARMA, now an Eisai company, is expected to yield increasing royalty revenues. Our financial position and revenue prospects will be used to fund the development of a rich pipeline that will ultimately enhance overall stockholder value."

2007 Fourth Quarter Results

Total revenues for the 2007 fourth quarter were $7.8 million, compared with $2.9 million for the same prior year period. Royalty revenue for the 2007 fourth quarter was $7.8 million, compared with $2.4 million for the same prior year period. Royalty revenue is earned pursuant to the license agreement entered into with MGI PHARMA during 2004, which granted MGI PHARMA exclusive rights to the development, manufacture, commercialization and distribution of Dacogen(R) (decitabine) for Injection. The Company recognizes royalty revenue on a cash basis when it is received. There was no net product revenue for the 2007 fourth quarter compared with net product revenue of $467,000 for the same prior year period. The decrease in net product revenue during the 2007 fourth quarter was primarily due to the sale of the Company's worldwide rights for Nipent and Surface Safe to Mayne Pharma (acquired by Hospira, Inc. in February 2007).

Excluding the gain on sale of products, total costs and operating expenses for the 2007 fourth quarter were $9.4 million, compared with $10.6 million for the same prior year period. The primary reasons for the decrease in total costs and operating expenses for the 2007 fourth quarter were reductions in cost of product revenue and sales and marketing expenses resulting from the sale of the Company's worldwide rights for Nipent and Surface Safe to Mayne Pharma, offset in part by higher research and development costs related to product development activities and an increase in the non-cash charge for stock-based compensation expense. Included in the gain on sale of products for the 2007 fourth quarter was the receipt of additional milestones earned on
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SOURCE SuperGen Inc.
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