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Biotech / Medical : Supergen (supg) -- Ignore unavailable to you. Want to Upgrade?

To: W Shakespeare who wrote (80)	5/18/1999 5:30:00 PM
From: Biomaven	Respond to of 124

Well they do apparently have an agreement with a mysterious "major international bank:" SuperGen Receives $36 Million In Common Stock Financing Commitment From a Major International Bank Deal Does Not Involve Warrants Or Resets SAN RAMON, CA (November 24, 1998) -- SuperGen, Inc. (Nasdaq: SUPG & SUPGW), a pharmaceutical company, today announced that it has secured a $36 million common stock equity line with a major international bank. Under the terms of the equity line, which does not involve warrants or resets, SuperGen may receive up to $36 million in cash in exchange for SuperGen common stock at upward escalating threshold prices. They've never disclosed the identity of the bank, and at a quick glance I didn't see any mention of this agreement in their 10K/10Q, which seems strange. They did sell some common at a discount in 1998, and they have a $20m shelf registration that is current. (Unusual for a company this size). I regard selling common to institutions at a small discount as fairly benign. I'd prefer if it was offered to all shareholders, but I guess this would drive up the transaction costs. They also seem to have a strong network of investors, like the Oracle connection. Bottom line is that they seem to be able to come up with money at reasonable cost in dilution, avoiding nasty convertibles and expensive partnerships with big pharma. Peter

To: W Shakespeare who wrote (80)	5/18/1999 8:11:00 PM
From: Russian Bear	Read Replies (1) \| Respond to of 124

Yes, I agree. They are going to need more money relatively soon, and lots of it. I have to assume that partnering 9-nc does not fit into Dr. Rubinfeld's empire-building plans. That only leaves public financing of one type or another (unless, of course, they can tap that mystery bank of theirs again.) Peter S. appears to have confidence that they will be able to secure the needed capital on reasonable terms and avoid excessive dilution. (And I hope that you are right, Peter!) But I will feel more comfortable buying in after their cash situation clarifies, even if that luxury costs me rather dearly. The drug itself is quite intriguing: 1. Pancreatic represents a very easy FDA hurdle to clear; 2. Reasonable expectation for broad applications (i.e., off label revenues;) 3. Potential for dramatic synergy with other agents. RB