SuperGen Inc. has received clearance from the Food and Drug Administration to begin clinical trials of an anticancer compound, triggering a $5.2 million milestone payment from SuperGen.

With the approval of the new-drug application, Dublin-based SuperGen (NASDAQ: SUPG) will pay a $5.2 million milestone payment to the former stockholders of Montigen Pharmaceuticals Inc., with the consisting of $2.8 million in cash and approximately $2.4 million in equity, representing approximately 1.5 million shares of SuperGen common stock.

The study will evaluate the safety and tolerability of SGI-1776, an orally administered, small-molecule anticancer compound.

The first clinical trial program will enroll patients with solid tumors, with specific emphasis on hormone refractory prostate cancer and refractory non-Hodgkin's lymphomas.

Source: Business Times