SuperGen receiving $5 million in Glaxo deal

SuperGen receiving $5 million, future payments in development deal with GlaxoSmithKline

• On 6:45 am EDT, Monday October 26, 2009

DUBLIN, Calif. (AP) -- Drug developer SuperGen Inc. said Monday it will receive an initial payment of $5 million, plus a chance for millions more in future payments, under a deal to develop possible cancer therapies with GlaxoSmithKline.

Under the deal, SuperGen will develop potential cancer therapies through early-stage studies. GlaxoSmithKline will then the right to exercise its option to further develop and potentially sell the drug candidate. SuperGen will receive $5 million, including $3 million through a stock investment. The company said development and sales milestone payments could top $375 million.

Shares of SuperGen closed at $2.38 Friday while shares of Glaxo, which is headquartered in the U.K., closed at $40.24.