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To: changedmyname who wrote (85682)	7/21/1999 10:37:00 AM
From: VeloSpeed	Respond to of 119973

marketwatch.newsalert.com MGI PHARMA Revenues Grow Nearly Fifty Percent in the 1999 Second Quarter and First Half Earnings Reach $1.3 Million in First Half of 1999 MINNEAPOLIS, July 21 /PRNewswire/ -- MGI PHARMA, INC. (Nasdaq: MOGN), a pharmaceutical company, today reported a 46-percent increase in revenues (which include product sales, promotion, licensing and interest income) to $6.3 million in the 1999 second quarter from $4.3 million in the 1998 second quarter. Net earnings for the 1999 second quarter totaled $611,190, or four cents per diluted share, compared to a net loss of $70,875, or zero cents per share, for the year-ago quarter. All revenue categories produced increases in the 1999 second quarter. Product sales grew 46 percent, fueled by a 56-percent increase in U.S. sales of Salagen(R) tablets (pilocarpine hydrochloride). Product sales totaled $4.8 million for the quarter, up from $3.3 million in 1998, while U.S. sales of Salagen tablets totaled $4.6 million in the second quarter, compared to $3.0 million in second quarter of 1998. Licensing income increased 50 percent in the 1999 second quarter due primarily to higher royalties, and promotion income increased 100 percent reflecting the impact of the new relationship with Connetics Corporation (Nasdaq: CNCT) announced at the end of the 1999 first quarter. Interest and other income also improved slightly, reflecting the company's improving cash flow. For the first six months of 1999, MGI PHARMA's revenues increased 48 percent to $12.0 million from $8.1 million in 1998. Net earnings for the 1999 six-month period were $1.3 million, or eight cents per diluted share, compared to a net loss of $167,922, or one cent per share, for the same period in 1998. Revenue increases in the first half of 1999 were driven primarily by a 57-percent increase in product sales and a 45-percent increase in licensing income. Product sales for the first six months of 1999 totaled $9.3 million, including $8.9 million of U.S. sales of Salagen tablets, comparing favorably to the first six months of 1998 when product sales totaled $5.9 million and U.S. sales of Salagen tablets totaled $5.5 million. Licensing income for the first half of 1999 totaled $1.9 million, compared to $1.3 million reported in the 1998 first half. MGI PHARMA's cash and investment position at the end of the 1999 second quarter was $17.9 million, with total assets of $22.8 million. The company has no long-term debt. Charles N. Blitzer, MGI's president and chief executive officer, said, "The last several quarters have been an exciting time for MGI PHARMA. We continue to deliver strong revenue gains and are maintaining our profitability, which we intend to leverage for future growth opportunities. Our most recent promotional relationships with Connetics and Pharmacia & Upjohn (NYSE: PNU) for three rheumatology products should help us maintain momentum as we add more critical mass to our base business." Update on MGI 114 During the 1999 second quarter, MGI PHARMA continued to advance the development of MGI 114, a promising anti-cancer drug. MGI PHARMA is sponsoring three Phase 2 human clinical studies (one each in pancreatic, ovarian and prostate cancer) and the National Cancer Institute (NCI) has several additional Phase 2 trials under way. All of these studies are actively enrolling and treating patients. In May, MGI PHARMA expanded its ovarian cancer study with MGI 114 after a 67-percent reduction in tumor mass was confirmed in one patient. This followed the December 1998 expansion of MGI PHARMA's prostate study after meeting the pre-established requirements for demonstration of anti-cancer activity. In May, additional data from the prostate study was presented at the American Society of Clinical Oncology (ASCO) annual meeting that showed further evidence of anti-tumor activity, including the reduction of soft tissue disease in two patients. Commenting on MGI 114, Blitzer stated: "We remain pleased with the progress of MGI 114 and excited about its future potential to treat a variety of cancers. We are moving as aggressively as possible with our clinical development efforts on this agent, and continuing preclinical evaluation of related analogs from the broader family of acylfulvenes." In addition to the Phase 2 studies, there are three Phase 1 human studies currently underway with MGI 114. The NCI is actively treating pediatric cancer patients and adult leukemia patients in Phase 1 safety studies, and MGI PHARMA is conducting a combination Phase 1 human safety study with Camptosar(R) (irinotecan), an approved cancer drug for colon and rectal cancers. MGI PHARMA is a pharmaceutical company that acquires, develops and markets differentiated specialty pharmaceutical and medical products for therapeutic markets of unmet needs. MGI PHARMA's current product portfolio is comprised of products that address specific needs in the fields of cancer and rheumatology. The company plans to expand its scope as the business grows. MGI PHARMA focuses its efforts solely in the United States and creates partnerships with other pharmaceutical or biotechnology companies for its products in international markets.