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SuperGen Reports 2008 Second Quarter Financial Results
Date:8/4/2008

an operation is anticipated to reduce operating expenses in future periods up to $1 million annually. Stock-based compensation expense, which is included in operating expenses, was $670,000 for the 2008 second quarter, compared with $1.1 million for the same prior year period.

The gain on sale of products for the 2008 second quarter was $560,000 compared with $25.8 million for the same prior year period. The gain on sale of products for the 2008 second quarter represents the receipt of an annual payment in the amount of $400,000 paid by Mayne Pharma (acquired by Hospira, Inc. in February 2007) related to the sale of Nipent(R) (pentostatin for injection) and the reversal of a residual product returns reserve for Nipent no longer required due to the expiration of the contractual return period in the amount of $160,000. The gain on sale of products for the same prior year period related primarily to the sale of Nipent and SurfaceSafe(R) representing the initial recognition of the deferred gain on sale of products to Mayne Pharma and also the recognition of gains on the sale of other products to Intas Pharmaceuticals.

Loss from operations for the 2008 second quarter was $2.3 million compared with income from operations of $10.9 million for the same prior year period. The Company reported a net loss for the 2008 second quarter of $4.9 million, or $0.08 per share, compared with net income of $11.1 million, or $0.19 per share, for the same prior year period. The net loss for the 2008 second quarter includes a non-operating charge of $3.1 million that reflects an other than temporary decline in value in the Company's equity investment in AVI BioPharma. There was no similar non-operating charge in the same prior year period.

Total revenues for the six months ended June 30, 2008 were $16.3 million, compared with $9.0 million for the same prior year period. Total revenues for the six months ended June 30, 2008 consisted of $16.3 million in royalty revenue,
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SOURCE SuperGen, Inc.
Copyright©2008 PR Newswire.
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