Rodman and Renshaw Upgrades SuperGen (SUPG) to Market Perform

July 2, 2008 9:32 AM EDT

Rodman and Renshaw upgrades SuperGen (NASDAQ: SUPG) from Market Perform to Market Outperform with a $3 price target.

The firm said, "SuperGen's partner Eisai reported results from the Dacogen EORTC study. The trial failed to show a statistically significant effect on survival for Dacogen vs. best supportive care. While this is likely to result in a near-term marketing disadvantage to SuperGen and Eisai in the myelodysplastic syndrome (MDS) indication vs. Vidaza, which is marketed by Celgene, we note Short Interest 6.1 that the results finally removes a significant overhang from SuperGen shares. SuperGen currently trades near its last reported cash position. We do not believe that the negative outcome of the EORTC study spells the end of Dacogen as a viable commercial opportunity, and expect Dacogen sales to remain flat or modestly decline for the remainder of the year. We maintain our expectation of ~$33MM in royalty revenue to SuperGen for 2008."

SuperGen is a pharmaceutical company engaging in the discovery, development, and commercialization of therapies to treat patients with cancer.

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