SuperGen to Get $20M Dacogen Milestone

SuperGen to Receive $20 Million Milestone Payment From MGI Pharma Following Dacogen Launch

DUBLIN, Calif. -- Drug maker SuperGen Inc. said Friday that its partner MGI Pharma Inc. launched the blood cell disease treatment Dacogen earlier in the week, triggering a $20 million milestone payment.

Under the exclusive worldwide licensing agreement, SuperGen will also receive a 20 percent royalty on Dacogen that can expand to a maximum royalty shares of 30 percent. SuperGen booked $30.2 million in revenue in 2005.

The Food and Drug Administration approved Dacogen in May for the treatment of myelodysplastic syndromes, a group of diseases characterized by poorly functioning and immature blood cells.

Shares of SuperGen rose 23 cents, or 5.4 percent, to $4.50 in premarket activity.