rubitecan. Maybe this does not strictly qualify as immediate failure, but does indeed smell strongly of it.
SuperGen and Abbott Mutually Conclude Their Alliance
'Abbott has helped us in our transition from a small company into a larger company during a critical time in our development, and for that we are very grateful. SuperGen has nearly $103 million of cash and marketable securities and equities on hand, and three novel oncology products with major potential in late-stage development.' Dr. Joseph Rubinfeld
DUBLIN, Calif., March 4 /PRNewswire-FirstCall/ -- SuperGen Inc. (Nasdaq: SUPG - news) announced today that its alliance with Abbott Laboratories (NYSE: ABT - news), announced in December 1999 for SuperGen's oral cancer drug rubitecan, has been mutually concluded, effective immediately.
``SuperGen's repurchase of rights through this settlement creates a unique opportunity for us to control our own destiny in that we now solely govern our own growing product pipeline, both domestically and internationally,'' said Joseph Rubinfeld, Ph.D., chairman and chief executive officer of SuperGen. ``We now can proceed, unencumbered, to pursue other business relationships worldwide for rubitecan and many other drugs in our pipeline that we believe will maximize shareholder value. Under the now-terminated agreement, Abbott had the exclusive right of first-look at all our products. Abbott could have taken up to 180 days to look at everything we have or will have in our pipeline. This has impeded our business activities with other potential partners. Now we have the freedom to exploit business opportunities as we see fit.''
As a result of the termination of the alliance with Abbott, Abbott is no longer SuperGen's marketing partner. SuperGen regains 100 percent of the marketing rights of rubitecan worldwide. Abbott no longer has the right or obligation to purchase shares of SuperGen stock at market prices upon achievement of milestones in a remaining aggregate amount equal to $52.5 million, no longer has the right to exercise its option to purchase up to 49 percent of SuperGen, and no longer has the right of first refusal to acquire SuperGen. SuperGen no longer has the right to receive cash payments (up to $57 million) on achievement of milestones and Abbott will forfeit the 50 percent profit split of future product revenue. The distribution agreement relating to Nipent remains in effect. |
