SuperGen’s Pain May Be Celgene’s Gain (SUPG, CELG)
SuperGen (NASDAQ: SUPG) is feeling some pain today after the company reported that its Dacogen missed its primary endpoints of showing a statistically significant advantage on median survival compared to standard care. Supergen said response rates were similar to those in other Dacogen clinical trials. Dacogen is partnered with Eisai and treats bone-marrow disease MDS, The results of this trial conducted by the European Organization for Research and Treatment of Cancer has SUPG down 13% to $1.78 in thin volume pre-market trading.
Interestingly enough, this is being tallied up as a win for Celgene Corporation (NASDAQ: CELG). Its MDS treatment is Vidaza and this is now going to be counted as less competition. Celgene is up over 3% pre-market at $65.95 (9:14 AM EST) on more than 418,000 shares in pre-market trading.
As a reminder, one-time gains at large caps from smaller company woes are frequently forgotten about. For a size comparison, the market cap for SuperGen was close to $118 million and the market cap for Celgene is over $27 Billion.
Jon Ogg
July 1, 2008