Royalty Revenue Increases 67% from Same Prior Year Period
DUBLIN, Calif., Nov. 4 /PRNewswire-FirstCall/ -- SuperGen, Inc. (Nasdaq: SUPG), a pharmaceutical company dedicated to the discovery and development of novel cancer therapies, today announced financial results for the third quarter and nine months ended September 30, 2008.
Total revenues for the 2008 third quarter were $10.2 million compared with $6.1 million for the same prior year period. Total revenues for the 2008 third quarter and same prior year period consist entirely of royalty revenue. Royalty revenue is earned pursuant to the license agreement entered into with MGI PHARMA (acquired by Eisai Co., Ltd. in January 2008) during 2004, which granted the licensee 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.
Excluding gain on sale of products, total costs and operating expenses
for the 2008 third quarter were $11.4 million, compared with $9.2 million
for the same prior year period. The primary reason for the increase in
total costs and operating expenses for the 2008 third quarter were higher
research and development costs related to increased product development
activities including ongoing clinical operations and the payment of
additional severance costs in the amount of $98,000 related to the closure
of our European operations offset in part by a reduction in general and
administrative expenses related to the cessation of our European operations
and lower stock-based compensation expense. The closure of the European
operations was effective October 1, 2008 and is anticipated will reduce
|SOURCE SuperGen, Inc.|
Copyright©2008 PR Newswire.
All rights reserved