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Biotech / Medical : MGI Pharma MOGN New patents, anti cancer -- Ignore unavailable to you. Want to Upgrade?

To: tuck who wrote (1611)	10/26/2005 4:16:48 PM
From: Icebrg	Read Replies (1) \| Respond to of 1826

Tuck, Sorry, I have no idea whatsoever. Generally speaking Europe should be a very difficult "market" to penetrate. Even if there is one central authority for approval a successful company must set up separate salesforces, if not two, in each individual country (due to different languages, cultures, customs, treatment preferences, regulators etc. etc.). This is clearly something neither MGI or Supergen will be able to do on their own. The eventual success of Dacogen will depend more on with whom they partner than on the timeline for approval. I generally tend to disregard European sales possibilities for companies, who don't have the sales force to match the requirements here. And those who have are to large to be of interest to me. Integrilin is a good example of a superior drug with very limited sales in Europe. I too believe this is an overreaction. Maybe someone looked for a reason to sell and now they got one. With or without merit. I believe the main questionmark overhanging MGI is that they are now spending the money they are making on Aloxi on further drug development. No harvest times yet, with other words. This may have been a disappointment for investors, who thought they would see a profitable company emerging out of the ashes of Irofulven. One the other hand, the sky or a place relatively close to it will be the limit, if they manage to get a couple of drugs through, all the way to approval. Erik

To: tuck who wrote (1611)	10/26/2005 4:37:36 PM
From: FiloF	Respond to of 1826

What I have seen is what I am sure you already know and what another YMB poster responded -- Supergen gets 20-30% of worldwide revenue. (see final sentence below -- excerpt from MOGN 10-k; not sure what the middle sentence means, though). "We expect to make additional milestone payments totaling $32.5 million upon achievement of the following milestones: (1) $20 million upon first commercial sale of Dacogen injection in the United States, and (2) $12.5 million for regulatory and commercialization milestones in Europe and Japan. Subject to certain limitations, we will also pay SuperGen 50 percent of certain revenue payable as a result of our sublicensing rights to market, sell or distribute Dacogen injection, to the extent such revenues are in excess of the milestone payments. In addition, SuperGen will receive a royalty on worldwide net sales of licensed product starting at 20 percent and escalating to a maximum of 30 percent. We also committed to fund at least $15 million of further Dacogen injection development costs by September 1, 2007, of which $7.6 million was incurred in 2004."