Here's another bio I like at 2.82 -.14 SUPG: Monday August 12, 8:46 pm Eastern Time
Dow Jones Business News
As Stock Falls, SuperGen Executives Show Higher Cash Position
By Pat Maio, Of DOW JONES NEWSWIRES
LOS ANGELES -(Dow Jones)- SuperGen Inc. (NasdaqNM:SUPG - News) executives, concerned by waning investor interest in its stock as it hit a 52-week low on Monday, said on a conference call that its cash position was better than reported last week. The company currently has about $49 million in cash, or about $11 million more than the amount listed on the balance sheet released last week. After an analyst raised concerns about the company running out of cash early next year, and its stock fell sharply, SuperGen wanted to show it has a more-than-adequate supply of cash to keep the business viable. ADVERTISEMENT
The increased cash level, according to the executives, can be attributed to about $5 million in receivables, investments in AVI Biopharma Inc. (NasdaqNM:AVII - News) and about $3 million in restricted cash. The investment community may have misread last week's balance sheet, executives said.
SuperGen's investment in AVI, a Portland, Ore.-based biopharmaceutical company, has fallen on tough times. AVI's stock closed Monday at $3.54, about $ 1.04 over its year low price set on July 16, and 68% below its $11.04 close on Jan. 2.
"We are still very, very bullish about the company," said Joseph Rubinfeld, chairman and chief executive of SuperGen, on the conference call with investors on late Monday afternoon. "We are not going out of business," he said.
He partially blamed the low valuation of the company's stock price on margin calls, causing a "false liquidation" in the stock, which he said would recover in coming days.
Rubinfeld also said that the company has many avenues to raise money, but he declined on the call to give a clear strategic approach on what path would be followed.
SuperGen is involved in serious negotiations with at least two global partners to help it market pharmaceutical drugs under development.
But it was unclear whether the partner might make some royalty or licensing arrangement with SuperGen, make an equity investment, or a combination of both.
Edward Jacobs, chief financial officer of SuperGen, said on the call that the Dublin, Calif.-based pharmaceutical company had lowered its cash burn rate by about 20% to $12 million in its second quarter.
It plans to slow the burn rate even further. For the current quarter it's a little under $10 million, with the hope of getting it down to about $8 million by the fourth quarter, Jacobs said.
The company is "spending less, and doing more," he said.
The stock ended Monday's 4 p.m. session at a 52-week closing low of $2.96, down 30 cents, or 9.2%.
The call was scheduled after a downgrade in the company's stock by Stephens Inc. analyst Jason Zhang, of Little Rock, Ark., who raised concerns about the company's low cash position.
The company, which generally doesn't hold conference calls when it announces quarterly results, also wanted to give an update on developments in a new cancer fighting drug.
The company expects to complete an analysis of data from its phase III trial of Orathecin in treating pancreatic cancer patients in eight to 10 weeks. The company will then meet with the Food and Drug Administration to discuss registration on a new drug application, Rubinfeld said. A scientific panel of pancreatic experts met in Hawaii this past weekend to review SuperGen's drugs under development. Karl Mettinger, chief medical officer, said on the call that he was optimistic about the input provided.
-Pat Maio, Dow Jones Newswires; 323-658-3776; patrick.maio@dowjones.com
I'm in here also...hit a 52wk low today but I'll guess it has bottomed at least temporarilly anyway...like what was covered on the call, especially the serious discussions with 2 or more global partners...tuna |
