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SuperGen Reports 2008 Third Quarter Financial Results
Date:11/4/2008

enues for the nine months ended September 30, 2008 consisted of $26.5 million in royalty revenue compared with $14.5 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 nine months ended September 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 calendar year.

Excluding gain on sale of products, total costs and operating expenses for the nine months ended September 30, 2008 were $33.4 million compared with $37.7 million for the same prior year period. The primary reason for the decrease in total costs and operating expenses for the nine months ended June 30, 2008 were lower acquired in-process research and development costs, a reduction in ongoing general and administrative costs related to winding down our European operations and lower stock-based compensation expense offset in part by higher research and development costs related to increased product development activities including ongoing clinical operations and payment of severance costs in the amount of $420,000 related to the closure of our European operation. Stock-based compensation expense, which is included in operating expenses, was $2.1 million for the nine months ended September 30, 2008 compared with $3.2 million for the same prior year period. The gain on sale of products for the nine months ended September 30, 2008 was $1.6 million compared with $27.7 million for the same prior year period.

Loss from operations for the nine months ended September 30, 2008 was $5.3 million compared with income from operations of $5.1 million for the same prior year period. The Company reported a net loss for the nine months ended September 30, 2008 of $6.5 mill
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SOURCE SuperGen, Inc.
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