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

compared with $8.4 million for the same prior year period. Royalty revenue is earned pursuant to the license agreement entered into with MGI PHARMA. The Company recognizes royalty revenue on a cash basis when it is received. There was no net product revenue for the six months ended June 30, 2008, compared with $621,000 for the same prior year period. The decrease in net product revenue during 2008 is due to the sale of the Company's worldwide rights for Nipent to Mayne Pharma in a prior period.

Excluding gain on sale of products, total costs and operating expenses for the six months ended June 30, 2008 were $22.0 million, compared with $28.5 million for the same prior year period. The primary reason for the decrease in total costs and operating expenses for the six months ended June 30, 2008 were lower acquired in-process research and development costs and a reduction in stock-based compensation expense offset in part by higher research and development costs related to increased product development activities including ongoing clinical operations and accrual of estimated severance costs related to the anticipated closure of our European operation later this year. Stock-based compensation expense, which is included in operating expenses, was $1.4 million for the six months ended June 30, 2008, compared with $2.3 million for the same prior year period.

The gain on sale of products for the six months ended June 30, 2008 was $1.6 million compared with $25.8 million for the same prior year period. The gain on sale of products for the six months ended June 30, 2008 represents the receipt of multiple payments totaling $1.4 million paid by Mayne Pharma that related to the sale of Nipent and SurfaceSafe 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 N
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SOURCE SuperGen, Inc.
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