Total revenues for the 2009 second quarter were $6.0 million, compared with $8.1 million for the same prior year period. Total revenues for the 2009 second quarter and same prior year period consisted entirely of royalty revenue. The decline in royalty revenue is primarily due to lower quarterly product sales reported by Eisai resulting from certain third party wholesalers adjusting their near-term inventory purchases. 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 MGI PHARMA exclusive rights to the development, manufacture, commercialization and distribution of Dacogen® (decitabine) for Injection. The Company recognizes royalty revenue when it is received.

SuperGen President & CEO, Dr. James S. J. Manuso, commented, "during the second quarter we continued to manage our cash conservatively, and we ended the quarter with $91.1 million in unrestricted cash, cash equivalents and current and non-current marketable securities. We remain debt-free, we will not access the public markets during 2009, and we project a basic non-GAAP cash burn in a range from $250,000 to $1.75 million for 2009. Our two clinical-stage drugs, MP-470, and SGI-1776, are advancing in Phase 1b and Phase I, respectively, and, on July 21, we hired a new Chief Medical Officer, Mohammad Azab, M.D., M.Sc., MBA, to lead our clinical and regulatory efforts."

Excluding gain on sale of products, total operating expenses for the 2009 second quarter were $8.7 million, compared with $11.0 million for the same prior year period. The primary reasons for the decrease in operating expenses for the 2009 second quarter were lower research and development costs due to changes in the timing of costs incurred for product development activities and a reduction in general and administrative expenses due to lower general corporate expenses and the elimination of costs resulting from the cessation of our European operations in the prior year. Stock-based compensation expense, which is included in operating expenses, was $505,000 for the 2009 second quarter compared with $670,000 for the same prior year period.

There was no gain on sale of products in the 2009 second quarter. The reported gain on sale of products for the 2008 second quarter was $560,000 and primarily relates to the receipt of an additional milestone payment resulting from the sale in a prior year of the worldwide rights for Nipent® (pentostatin for injection) to Mayne Pharma (acquired by Hospira, Inc. in February 2007).

Loss from operations for the 2009 second quarter was $2.7 million compared with a loss from operations of $2.3 million for the same prior year period. The Company reported a net loss for the 2009 second quarter of $2.4 million, or $0.04 per basic and diluted share, compared with a net loss of $4.9 million, or $0.08 per basic and diluted share, for the same prior year period. The net loss for the 2008 second quarter includes a non-operating charge of $3.1 million that reflects an other than temporary decline in value in the Company's equity investment in AVI BioPharma. There was no similar non-operating charge in the 2009 second quarter.

Total revenues for the six months ended June 30, 2009 were $18.9 million, compared with $16.3 million for the same prior year period. Total revenues for the six months ended June 30, 2009 and 2008 consisted entirely of royalty revenue. Royalty revenue is earned pursuant to the license agreement entered into with MGI PHARMA. The Company recognizes royalty revenue when it is received.

Excluding gain on sale of products, total operating expenses for the six months ended June 30, 2009 were $18.3 million, compared with $22.0 million for the same prior year period. The primary reasons for the decrease in operating expenses for the six months ended June 30, 2009 were lower research and development costs due to a shift in the timing of costs incurred for product development activities and a reduction in general and administrative expenses due to lower general corporate expenses and the elimination of costs resulting from the cessation of our European operations in the prior year. Stock-based compensation expense, which is included in operating expenses, was $1.1 million for the six months ended June 30, 2009, compared with $1.4 million for the same prior year period.

The reported gain on sale of products for the six months ended June 30, 2009 was $500,000 compared to $1.6 million for the same prior year period. The gain on sale of products for both periods primarily relate to the receipt of additional payments resulting from the sale of the worldwide rights for Nipent to Mayne Pharma (acquired by Hospira, Inc. in February 2007) in a prior year.

Income from operations for the six months ended June 30, 2009 was $1.1 million compared with a loss from operations of $4.2 million for the same prior year period. The Company reported net income for the six months ended June 30, 2009 of $1.6 million, or $0.03 per basic and diluted share, compared with a net loss of $5.9 million, or $0.10 per basic and diluted share, for the same prior year period. The net loss for the six months ended June 30, 2008 included a non-operating charge of $3.1 million that reflects an other than temporary decline in value in the Company's equity investments. There was no similar non-operating charge for the six months ended June 30, 2009.

As of June 30, 2009, the Company had approximately $91.1 million in unrestricted cash, cash equivalents and current and non-current marketable securities compared to $91.8 million at March 31, 2009.

2009 Revised Financial Guidance

The revised annual financial guidance for 2009 is as follows:

Anticipated royalty revenue remains unchanged from our prior guidance and is expected to be in a range from $38 million to $42 million.

Research and development expenses have been revised downward from our prior guidance, to a range from $35 million to $37 million. Research and development expenses continue to be influenced by costs related to current and anticipated clinical trial programs, including MP-470 and SGI-1776, in addition to ongoing product development efforts.

General and administrative expenses have been reduced further from our prior guidance to a range from $9.0 million to $9.5 million.

During 2009, no additional gain on sale of products resulting from the previous sale of our commercial business is anticipated beyond the $500,000 already received during the 2009 first quarter.

The revision to our financial guidance results in a further reduction to the anticipated annual net loss from our prior guidance and is now expected to be in a range from $3.0 million to $4.5 million.

Included in total operating expenses are non-cash stock-based compensation expenses now estimated at $2.75 million. Excluding the non-cash expenses from the estimated net loss for 2009, the adjusted net loss results in a basic non-GAAP cash burn in a range from $250,000 to $1.75 million.

The Company continues to remain debt-free and does not plan to access the capital markets for operational purposes during 2009.