DUBLIN, Calif., April 28 SuperGen Inc.(Nasdaq: SUPG) today reported financial results for the first quarter endedMarch 31, 2008.
Total revenues for the 2008 first quarter were $8.1 million, compared with$4.4 million for the same prior year period. Total revenues for the 2008first quarter consisted of $8.1 million in royalty revenue, compared with$3.8 million for the same prior year period. Royalty revenue is earnedpursuant to the license agreement entered into with MGI PHARMA (acquired byEisai Co., Ltd. in January 2008) during 2004, which granted MGI PHARMAexclusive rights to the development, manufacture, commercialization anddistribution of Dacogen(R) (decitabine) for Injection. The Company recognizesroyalty revenue on a cash basis when it is received from MGI PHARMA. Therewas no net product revenue for the 2008 first quarter, compared with $621,000for the same prior year period. The decrease in net product revenue duringthe 2008 first quarter is due to the sale of the Company's worldwide rightsfor Nipent(R) to Mayne Pharma (acquired by Hospira, Inc. in February 2007) inthe prior year.
Total costs and operating expenses for the 2008 first quarter were$10 million, compared with $8.9 million for the same prior year period. Theprimary reason for the increase in total costs and operating expenses for the2008 first quarter were higher research and development costs related toincreased product development activities, including ongoing clinical trialcosts, partially offset by lower cost of product revenue, a reduction instock-based compensation expense, lower sales and marketing expenses, as wellas a gain on sale of products resulting from the sale of the Company's NorthAmerican rights for Nipent and Surface Safe(R) to Mayne Pharma. The gain onsale of products for the 2008 first quarter of $1 million represents receiptof an indemnification holdback paid by Mayne Pharma to the Company in February2008 after expiration of a contractual holding period. There was no similargain in the same prior year period. Stock-based compensation expense, which isincluded in operating expenses, was $747,000 for the 2008 first quarter,compared with $1.2 million for the same prior year period.
The Company reported a net loss for the 2008 first quarter of$1.1 million, or $0.02 per share, compared with a net loss of $3.3 million, or$0.06 per share, for the same prior year period.
As of March 31, 2008, the Company had approximately $90.8 million incurrent and non-current unrestricted cash, cash equivalents and marketablesecurities.
"We are pleased to end the 2008 first quarter with nearly the same amountof cash, cash equivalents and marketable securities that we had at the end of2007, given that we have considerably advanced the development of MP-470, ourclinical-stage tyrosine kinase (TK) inhibitor and Rad51 suppressor, andSGI-1776 and S-110, two of our pre-clinical stage compounds," said Dr. JamesManuso, SuperGen's President and Chief Executive Officer. "We are on scheduleto begin Phase 1 clinical trials with SGI-1776 before year-end. Dacogenroyalty revenues have continued to largely offset our operating expenses andproductivity has been further enhanced across the discovery and developmentfunctions."
2008 Revised Financial Guidance
The Company expects to report royalty revenue for 2008 in a range from$32 million to $35 million. The Company's royalty revenue is initially basedon the annual end user guidance of approximately $157 million for 2008provided by Eisai Co., Ltd. in their quarterly conference call in earlyFebruary 2008. The Company recognizes royalty revenue on a cash basis when itis received. The Company also expects to record additional milestones thatrelate to the sale of products to Mayne Pharma that are estimated in a rangefrom $1.6 million to $2.6 million. No other cash flows resulting frombusiness developm