UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

JOHN R. BLUM, On Behalf of Case No. C-03-1576-PJH Himself And All Others Similarly Situated, CLASS ACTION

Plaintiff, COMPLAINT FOR VIOLATION OF THE FEDERAL SECURITIES vs. LAWS

SUPERGEN, INC. and JOSEPH RUBINFELD,

Defendants. DEMAND FOR JURY TRIAL

INTRODUCTION

1. This is an action on behalf of purchasers of SuperGen, Inc. ("SuperGen" or the "Company") stock between April 18, 2000 and March 13, 2003. Based in Dublin, California, SuperGen is a pharmaceutical company dedicated to the development and commercialization of products intended to treat life-threatening diseases, particularly cancer and blood cell disorders, as well as other serious conditions such as obesity and diabetes. SuperGen is developing an anti-cancer portfolio of proprietary new drugs and enhanced ExtraTM products, and currently is marketing its initial line of drugs for the treatment of cancer patients, including Nipent. The company also currently is sponsoring Phase II human clinical trials for drugs targeting , obesity and diabetes.

2. During the Class Period, one of the Company's leading drug candidates was Mitozytrex, a proprietary reformulation of the approved anticancer drug , which is used primarily to treat gastric and pancreatic cancers. SuperGen's reformulation is based on technology designed to improve the handling characteristics and safety profile of mitomycin and other anticancer drugs by enhancing the drug's stability in solution form and "shielding" it at the injection site. SuperGen sold millions of shares and notes for $25 million in illegal proceeds so as to provide it with ample monies to fund its operations. However, this all took place prior to revelations concerning the veracity of the Company's statements regarding Mitozytrex. The Federal Food, Drug and Cosmetic Act gives the FDA authority to disseminate information to the public regarding drugs and other products within the FDA's jurisdiction to address imminent health dangers or gross deception. To protect the public health due to the improper statements by the Company, the FDA notified the public that SuperGen's product, Mitozytrex, has not been found by the agency to have benefits that the Company claimed. 3. The true facts which were actually known by each defendant were as follows:

(a) That Mitozytrex caused adverse reactions such as fever, anorexia, nausea and vomiting, together with myelosuppression and hemolytic uremic syndrome;

(b) That Mitozytrex was merely a bioequivalent to the innovator mitomycin. It differed from the innovator formulation only in that the Company's product contained hydroxypropyl-beta-cyclodextrin ("HPCD"). No evidence exists to support the Company's claims that Mitoyztrex is superior to the existing formulations of mitomycin;

(c) That there is no existing evidence that the addition of HPCD yields any clinical advantage over the original formulation of mitomycin;

(d) That SuperGen's "Extra" technology did not shield the drug at the injection site; and

(e) That the so-called "advantages" of the Company's product, including increased solubility, stability and shelf-life, were non-existent.

JURISDICTION AND VENUE

4. The claims asserted arise under §§10(b) and 20(a) of the Securities Exchange Act of 1934 (" 1934 Act") and Rule 1 0b-5. Jurisdiction is conferred by §27 of the 1934 Act. Venue is proper pursuant to §27 of the 1934 Act.

THE PARTIES

5. Plaintiff John R. Blum purchased shares of SuperGen common stock as detailed in the attached Certification, and was damaged thereby.

6. Defendant SuperGen is headquartered at Dublin, California. SuperGen's common stock traded in an efficient market on the NASDAQ.

7. Defendant Joseph Rubinfeld ("Rubinfeld") was the Chairman, President and Chief Executive Officer of SuperGen.

8. Defendant Rubinfeld, by reason of his stock ownership and positions with SuperGen, was a controlling person of SuperGen. SuperGen controlled defendant Rubinfeld and each of its employees. Defendants SuperGen and Rubinfeld are liable under the 1934 Act §20(a).

SCIENTER AND SCHEME ALLEGATIONS

Scheme 9. Each defendant is liable for making false statements or for failing to disclose adverse facts while SuperGen was selling stock and for participating in a scheme which operated as a fraud or deceit on purchasers of SuperGen stock.

Knowledge

10. Rubinfeld was the top executive of SuperGen. He ran SuperGen, dealing with important issues facing SuperGen's business, i.e., its offerings, and the success of Mitozytrex. Moreover, he was quoted in virtually every press release.

11. SuperGen's revenue was dependent upon FDA approval for the use and distribution of its drugs. Likewise, SuperGen's future profitability was completely dependent upon its ability to obtain FDA approval for Mitozytrex. From the very beginning of the Class Period, defendants knew:

(a) That Mitozytrex caused adverse reactions such as fever, anorexia, nausea and vomiting, together with myelosuppression and hemolytic uremic syndrome;

(b) That Mitozytrex was merely a bioequivalent to the innovator mitomycin. It differed from the innovator formulation only in that the Company's product contained HPCD and no evidence exists to support the Company's claims that Mitoyztrex is superior to the existing formulations of mitomycin;

(c) That there is no existing evidence that the addition of HPCD yields any clinical advantage over the original formulation of mitomycin;

(d) That SuperGen's Extra technology did not shield the drug at the injection site; and

(e) That the so-called "advantages" of the Company's product, including increased solubility, stability and shelf-life, were non-existent.

Motive/Opportunity

12. In addition to having actual knowledge of the falsity of their false statements, defendants had the motive and the opportunity to perpetrate the fraudulent scheme and course of business described herein. Because SuperGen needed to conserve its cash to fund ongoing operations, it had to quickly raise money via private placement offerings. This put tremendous pressure on SuperGen's executives to present SuperGen's business in a very favorable light to the investment community to inflate SuperGen stock to higher levels, thereby greatly increasing its value in its offerings. The higher SuperGen's stock price rose, the fewer shares SuperGen would have to issue to complete any offering, making these offerings much less dilutive to SuperGen.

13. During the Class Period, while the defendants were continuing to issue false and misleading statements about SuperGen, and in order to continue funding SuperGen, SuperGen sold millions of shares of its stock and notes for proceeds of $25 million, thereby profiting from the artificial inflation in SuperGen's stock price.

BACKGROUND TO CLASS PERIOD

14. SuperGen and its officers claimed that its MitoExtraTM was a proprietary reformulation of the approved anticancer drug mitomycin, which is used primarily to treat gastric and pancreatic cancers. SuperGen's reformulation is based on technology designed to improve the handling characteristics and safety profile of mitomycin and other anticancer drugs by enhancing the drug's stability in solution form and "shielding" it at the injection site. Mitomycin and many other cytotoxic agents can cause ulceration and local tissue damage.

15. On April 18, 1996, SuperGen issued a press release entitled "SuperGen, Inc. Begins Human Trials of New Anticancer Drug." The press release stated in part:

SuperGen Inc. announced the initiation of human safety and bioequivalency trials of MitoExtra, under a company-sponsored Investigational New Drug application cleared by the U.S. Food and Drug Administration.

The trials will be conducted at the M.D. Anderson Cancer Research Center in Houston.

MitoExtra is a proprietary reformulation of the approved anticancer drug Mitomycin C, which is used primarily to treat gastric and pancreatic cancers. SuperGen's reformulation is based on technology designed to improve the handling characteristics and safety profile of Mitomycin and other anticancer drugs by enhancing the drugs' stability in solution form and "shielding" it at the injection site. Mitomycin and many other cytotoxic agents can cause ulceration and local tissue damage. The current studies will focus on a comparison of MitoExtra's biological availability, activity and distribution with that of the currently available formulation.

"This is an important milestone in an expanding portfolio of 'Supergeneric' products being developed at SuperGen," said Joseph Rubinfeld, Ph.D., the company's Chief Executive Officer. "We will continue to add to the data needed to demonstrate the value we see in our Extra technology for oncologists and patients."

SuperGen previously has filed an application with the FDA to market a generic version of Mitomycin C in finished form.

16. On February 24, 1998, SuperGen issued a press release entitled "FDA Accepts SuperGen's New Drug Application for MitoextraTM." The press release stated in part: SuperGen, Inc., an emerging pharmaceutical company, today announced that the U.S. Food and Drug Administration has accepted for review the company's New Drug Application (NDA) for MitoExtraTM, SuperGen's proprietary version of mitomycin. MitoExtraTM is the lead candidate in the company's line of ExtraTM anti-cancer drugs, in which SuperGen applies its patented "shielding" drug delivery technology to the reformulation of proven and established drugs. ExtraTM technology is designed to improve shelf-life and handling characteristics, as well as diminish localized tissue damage that can occur at the injection site with many anti-cancer drugs.

"The FDA's acceptance of this NDA for review has accelerated the clinical development process for our entire ExtraTM product line," said Dr. Joseph Rubinfeld, SuperGen's Chairman and Chief Executive Officer. "With our new dedicated R&D facility at the SuperGen Pharmaceutical Research Institute and using MitoExtraTM as a template, we believe we can now move toward FDA registration of other Extra TM product candidates."

Rubinfeld said SuperGen has the capability to target virtually any anti-cancer drug for proprietary reformulation. The company's initial development efforts include ExtraTM versions of , , and Nipenta®, in addition to mitomycin.

17. On May 4, 1998 SuperGen issued a press release entitled "SuperGen Obtains FDA Approval to Market Anti-Cancer Drug." The press release stated in part: SuperGen, Inc., a pharmaceutical company, announced that the U.S. Food and Drug Administration (FDA) has approved its application to market mitomycin for injection. Mitomycin, originally developed and marketed by Bristol-Myers Squibb under the tradename Mutamycin®, is approved in the U.S. for the treatment of adenocarcinoma of the stomach and pancreas in combination with other approved chemotherapeutics. SuperGen expects to begin selling the drug by June, 1998.

"This approval once again demonstrates our ability to integrate all our capabilities from start to finish," said Dr. Joseph Rubinfeld, SuperGen's Chief Executive Officer. "It comes on the heels of FDA acceptance for review of SuperGen's New Drug Application for MitoExtraTM, our value-added reformulation of mitomycin, in February and FDA approval of our supplemental New Drug Application (sNDA) for the sale of SuperGen's own-manufactured Nipent® for the treatment of a type of lymphocytic leukemia in December.

"Our demonstrated ability to validate multiple manufacturing sites for a variety of drugs should prove invaluable in our efforts to move forward our MitoExtra marketing application and subsequent filings on other anti-cancer drugs," added Dr. Rubinfeld.

FALSE AND MISLEADING STATEMENTS DURING THE CLASS PERIOD

18. On April 18, 2000, SuperGen issued a press release entitled "SuperGen Wins Patenton ExtraTM Formulation; Proprietary Shielding Technology Creates 'Next Generation' of Established, Widely Used Anticancer Drugs." The press release stated in part: SuperGen Inc. announced today that it has been issued U.S. Patent No. 6,048,845, protecting the company's proprietary ExtraTM technology platform.

Most anticancer drugs are cytotoxic; in addition, most must be administered intravenously. If a vein is missed on injection, the drug can extravasate, or leak, to surrounding tissue, causing ulceration that sometimes requires even plastic surgery to correct. SuperGen's Extra technology is designed to "shield" the drug from the injection site, thus providing the patient protection from tissue ulceration. In preclinical studies, significant ulceration was not observed with an Extra drug, even when it was injected directly into tissue. A New Drug Application is pending approval from the Food and Drug Administration on the first of a series of Extra drugs, Mitomycin Extra.

"This patent is extremely gratifying, from both a personal and professional standpoint, as SuperGen was founded on the concept of our Extra technology," said Dr. Joseph Rubinfeld, chairman and chief executive officer of SuperGen. "The issuance of this patent gives us the opportunity to continue to develop proprietary, improved pharmaceutically acceptable formulations of many existing and successful anticancer drugs, which may be readily commercialized. This additional platform technology is part of our strategy to build SuperGen into a broad-based oncology company.

"In addition to its so-called shielding benefit, Extra offers a second important benefit: The majority of established anticancer drugs are powders, which must be mixed into solution prior to injection, a time-consuming and sometimes hazardous process for the handler," added Dr. Rubinfeld. "After mixing, they have such a short shelf life that expensive drugs are sometimes wasted. The Extra technology is designed to produce a stable, ready-to-inject solution with commercially attractive shelf life at room temperature."

19. On May 9, 2002, SuperGen issued a press release entitled "SuperGen Reports First- Quarter Financial Results." The press release stated in part: SuperGen, Inc. today reported financial results for the first quarter ended March 31, 2002. * * * "Our Phase III of decitabine as treatment for advanced myelodysplastic syndromes is rapidly moving forward," continued Dr. Rubinfeld. "More than 20 sites around the country have already enrolled 40 percent of the patients in the study."

"In total, we currently have over 40 different clinical trials under way in a variety of compounds and indications," said Dr. Rubinfeld. "Our pipeline is quite robust with two drug applications, paclitaxel and MitoExtraTM, currently under active review at the FDA. "

20. On May 23, 2002, SuperGen issued a press release entitled "SuperGen's Amendment to New Drug Application for MitoExtraTM Accepted by FDA." The press release stated in part: SuperGen Inc. today announced that the Food and Drug Administration (FDA) has accepted as complete the company's amendment to its New Drug Application (NDA) for it's proprietary compound MitoExtraTM (mitomycin). Baring any unforeseen delays, the company anticipates a decision from the FDA before the end of the year.

The majority of established anti-cancer drugs are powders, which must be mixed into a solution prior to injection, a time consuming and sometimes risky process for the handler. After mixing, the compounds have such a short shelf life that expensive drug is sometimes wasted (for example, if a hospital shift change causes a delay between mixing and injection). SuperGen's patented ExtraTM technology is designed to produce a stable, ready-to-inject solution with commercially attractive shelf life at room temperature.

Most anti-cancer drugs also are cytotoxic and must be administered intravenously. If a vein is missed on injection, the drug can extravasate to surrounding tissue, causing ulceration that sometimes requires even plastic surgery to correct. The ExtraTM technology is designed to shield the injection site from the drug, thus helping to provide patient protection from tissue ulceration. In pre-clinical studies, ulceration was not observed with an ExtraTM drug, even when it was injected directly into tissue.

Similarly, in a published human clinical study (February 15, 2001 issue of Cancer, vol. 91, pp. 815-21) conducted at M.D. Anderson Cancer Center which compared generic mitomycin and MitoExtra in 25 patients, no ulceration was noted with the Extra formulation. The Principal Investigator of that study was Dr. Richard Pazdur, currently with the Division of Oncology Drug Products, Center for Drug Evaluation and Research, at the Food and Drug Administration.

" We are pleased that the FDA has begun its substantive review of the NDA for MitoExtra, " said Dr. Joseph Rubinfeld, chairman and chief executive officer of SuperGen. "With its ability to extend the shelf-life of existing drugs and reduce the risk of injection-related tissue damage, our patented Extra formulation may give SuperGen a competitive advantage over existing generic agents. Much like our franchise compounds - Nipent®, OrathecinTM and decitabine - which may be effective against a wide variety of cancers, we believe that Extra could be applicable for a large number of generics, including daunorubicin, etoposide, and paclitaxel."

"On a personal note, the Extra technology platform was the basis for the founding of SuperGen, and I am extremely gratified that our first Extra drug is moving closer to regulatory approval," added Dr. Rubinfeld.

21. On July 30, 2002, SuperGen issued a press release entitled "SuperGen Affiliate Files for European Approval of Mitomycin." The press release stated in part: SuperGen Inc. announced today that its European affiliate, EuroGen Pharmaceuticals, Ltd. ("EuroGen"), has filed a Mutual Recognition Application with the Medicines Control Agency of the United Kingdom seeking regulatory approval to market mitomycin in the U.K. and in certain other countries within the European Union. Mitomycin, which SuperGen markets in the United States, is a chemotherapy compound used to treat several types of cancers, including: breast, stomach, non-small cell lung, pancreatic and cervical.

"This filing is part of a broader company strategy to facilitate regulatory approvals of our products in Europe and build value for our pipeline of products, which include paclitaxel, daunorubicin, Mitoextrarm and various other proprietary compounds," said Dr. Joseph Rubinfeld, chairman and chief executive officer of SuperGen. "Our long- term goal is to create a sustainable and profitable business within Europe. EuroGen may also be a vehicle to attract capital investment or perhaps a strategic European partner."

22. On August 7, 2002, SuperGen issued a press release entitled "SuperGen Reports Second-Quarter Financial Results." The press release stated in part: [H]ighlights in the second quarter:

•A clinical study was published in the June issue of Blood, reporting that decitabine significantly elevated the fetal hemoglobin levels in 100 percent of sickle cell patients enrolled.

•A preclinical study at the M.D. Anderson Cancer Center demonstrated that SuperGen's anti-angiogenesis platform selectively destroyed the blood supply to cancer tumors in animals.

•The FDA accepted as complete the company's amendment to its NDA for MitoExtrarm (mitomycin).

•At the 38th Annual Meeting of the American Society of Clinical Oncology (ASCO), positive clinical data was presented on PartajectTM - delivered in patients with neoplastic meningitis and Orathecin in patients with chordomas and stomach cancer.

•Clinical data was presented at the 93rd Annual Meeting of the American Association of Cancer Research (AACR), demonstrating decitabine's ability to alter the process of gene methylation, a crucial component in cancer growth.

23. On September 24, 2002, SuperGen issued a press release entitled "SuperGen Raises $4.5 Million Through Private Placement." The press release stated in part: SuperGen Inc. announced today that it has entered into definitive purchase agreements for the private placement of common stock to several institutional investors. Rodman & Renshaw acted as the exclusive private placement agent to SuperGen. In the placement, SuperGen will issue 1,806,400 shares of common stock at a price of $2.50 per share, together with 4-year warrants to purchase 1,806,400 additional shares of common stock with 1,206,062 of such warrants having an exercised price of $4.00 per share and 603,338 of such warrants having an exercise price of $5.00 per share. The last reported sale price of SuperGen common stock on the NASDAQ National Market on September 23, 2002 was $2.48. SuperGen has agreed to register all of the privately placed shares of common stock, together with the shares issuable upon exercise of the warrants, for resale under the Securities Act of 1933.

The securities to be issued in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration under the Securities Act and applicable state securities laws or an applicable exemption from those registration requirements.

"The ability to sell shares without 'lookback' provisions and without creating debt or additional classes of stock or selling assets, is a positive financial milestone, especially given the current economic climate," said Dr. Joseph Rubinfeld, chairman and chief executive officer of SuperGen. "The potential for raising approximately $8 million from a warrant call, as well as full freedom to access corporate partners, gives SuperGen many options to satisfy its future cash needs."

24. On November 15, 2002, SuperGen issued a press release entitled "FDA Approves New Drug Application to Market Mitozytrex TM (MitoExtraTM)." The press release stated in part: SuperGen Inc. today announced that it has received approval from the U.S. Food and Drug Administration (FDA) to market Mitozytrex (MitoExtra TM), the company's proprietary version of the generic drug mitomycin, for use in the therapy of disseminated adenocarcinoma of the stomach or pancreas in proven combinations with other approved chemotherapeutic agents and as palliative treatment when other modalities have failed. Mitozytrex becomes the first approved drug based on SuperGen's patented "supergenerics" ExtraTM technology platform.

"We are very pleased to have received FDA clearance to market Mitoz ytrex. This approval marks a milestone as it is the first New Drug Application - from beginning to end - that the company has seen through to approval," said Dr. Joseph Rubinfeld, chairman and chief executive officer of SuperGen. "Although much of the external focus is on Nipent® and our late stage investigative compounds OrathecinTM and decitabine, Mitozytrex becomes our fifth marketable product, joining Nipent, mitomycin, daunorubicin and the SurfaceSafe® disposable cleaning system.

"Receiving FDA approval for MitoExtra is extremely gratifying, from both a personal and professional standpoint, as SuperGen was founded on the concept of the Extra technology," added Dr. Rubinfeld. "It is our belief that this could lead to a whole new generation of improved generics, or supergenerics, and we intend to develop the leading anticancer generics into Extra compounds."

Most anticancer drugs are cytotoxic; in addition, most must be administered intravenously. If a vein is missed on injection, the drug can extravasate, or leak, to surrounding tissue, causing ulceration that sometimes requires even plastic surgery to correct. SuperGen's Extra technology is designed to "shield" the drug from the injection site, thus providing the patient protection from tissue ulceration. "In addition to its so-called shielding benefit, the Extras could offer other important advantages over existing generics, such as increased solubility, stability and shelf life," said Dr. Rubinfeld. "With generics becoming more prominent in the marketplace, this approval offers SuperGen a strong toehold in this burgeoning business segment."

25. On February 27, 2003, SuperGen issued a press release entitled "SuperGen Reports 2002 Fourth Quarter and Year-End Financial Results; Quarterly revenues increased 109%, driven by record sales of Nipent®; fourth quarter net loss down 59%; 2002 total revenues up 33%." The press release stated in part: As of December 31, 2002, the company had $39,982,000 in cash, cash equivalents, restricted cash, marketable securities and investments.

"Our clinical development program experienced a tremendous surge in momentum during fiscal 2002," added Dr. Rubinfeld. "On December 30th, we began the process of submitting a rolling New Drug Application for Orathecin as an oral treatment for pancreatic cancer. The first of three data modules, which contained the chemistry, manufacturing and controls information, was submitted to the U.S. Food and Drug Administration (FDA). Earlier this month, the module containing the preclinical data was also submitted. In November 2002, Orathecin received a 'fast-track' designation from the FDA.

"Our Phase III program for decitabine as a treatment for advanced myelodysplastic syndromes (MDS), continued to progress steadily," continued Dr. Rubinfeld. "Less than ten patients are needed to complete enrollment in this program, and we hope to have preliminary data by the end of 2003."

Additional highlights in the 2002 fourth quarter:

* * * • On November 15, 2002, SuperGen received approval from the FDA to market MitozytrexTM (MitoExtra), the company's proprietary version of the generic drug mitomycin, for use in the therapy of disseminated adenocarcinoma of the stomach or pancreas in proven combinations with other approved chemotherapeutic agents and as palliative treatment when other modalities have failed. Mitozytrex became the first approved drug based on SuperGen's patented "supergenerics" Extra technology platform. 26. On February 27, 2003, SuperGen issued a press release entitled "SuperGen Closes Private Placement of $21.25 Million of Convertible Debt." The press release stated in part: SuperGen, Inc. today announced that it has completed a private placement of $21.25 million of senior exchangeable convertible notes and related warrants to a select group of institutional investors. Rodman & Renshaw, Inc. acted as an exclusive placement agent for SuperGen. The notes have a final maturity date of August 26th, 2004 and bear interest at a rate of 4 percent per annum. Interest is payable at SuperGen's option in cash or, subject to certain conditions, in shares of SuperGen common stock.

The notes are convertible at the investors' option at any time into SuperGen common stock at a fixed conversion price of $4.25, approximately a 22 percent premium to the average of the closing prices of SuperGen common stock for the 10 trading days prior to the closing. The notes also are exchangeable at the investors' option at any time into a maximum of 2,634,211 shares of common stock of AVI BioPharma Inc. currently owned by SuperGen at a fixed exchange price of $5.00, approximately a 40 percent premium to the average of the closing prices of AVI BioPharma common stock for the 10 trading days prior to the closing.

27. On March 14, 2003, the FDA, for the first time since 1986, issued a warning to the public in a press release entitled "SuperGen Release Had Misrepresentations, FDA Says." The press release stated in part: FDA WARNS PUBLIC ABOUT MISREPRESENTATIONS IN MARKETING CLAIMS ABOUT DRUG TO TREAT CANCER. * * * The press release, entitled FDA approves SuperGen's New Drug Application to Market Mitozytrex (MitoExtra) and disseminated by SuperGen, Inc., exaggerates the efficacy of Mitozytrex and fails to include the significant risks associated with the use of the drug. Indeed, the press release does not even mention acute adverse reactions that can result from administration ofMitozytrex, which include fever, anorexia, nausea, and vomiting. The press release also fails to disclose that Mitozytrex is associated with more serious adverse events, such as myelosuppression and hemolytic uremic syndrome.

A boxed warning included in the Mitozytrex package insert reads:

"Bone marrow suppression, notably thrombocytopenia and leukopenia, which may contribute to overwhelming infections in an already compromised patient, is the most common and severe of the toxic effects of mitomycin." "Hemolytic Uremic Syndrome (HUS), a serious complication of chemotherapy, consisting primarily of microangiopathic hemolytic anemia, thrombocytopenia, and irreversible renal failure has been reported in mitomycin. The syndrome may occur at any time during systemic therapy with micomycin as a single agent or in combination with other cytotoxic drugs, however, most cases occur at cumulative doses greater than or equal to 60 mg of mitomycin. Blood product transfusion may exacerbate the symptoms associated with this syndrome."

The press release issued by SuperGen also makes unsupported claims that Mitozytrex is a "supergeneric " from the company's Extra technology platform and that the Extra technology is "designed to enhance generic drugs," that is, create "improved generics, or supergenerics. " Mitozytrex is bioequivalent to the innovator mitomycin. It differs from the innovator formulation only in that Mitozytrex contains the excipient hydroxpropyl-beta-cyclodextrin (HPCD). No data submitted by the company provided evidence that Mitozytrex is superior to existing marketed formulations of mitomycin, and there is no evidence that the addition of HPCD yields any clinical advantage over existing formulations of mitomycin.

Despite the absence of any evidence of such a benefit, SuperGen's release states that "SuperGen's Extra technology is designed to 'shield' the drug from the injection site, thus providing the patient protection from tissue ulceration." This statement is unsupported. The adverse events associated with Mitozytrex in the bioequivalence study conducted before approval were consistent with those mentioned in the product labeling for the innovator mitomycin. In addition, the repeat dose study provided no evidence that the safety profile of Mitozytrex is different from the innovator mitomycin. In fact, one patient in this study did experience tissue necrosis at the injection site.

SuperGen, Inc., claims in its press release that the company's Extra technology could offer other important advantages over existing generics, such as "increased solubility, stability and shelf life." The instructions for reconstitution ofMitozytrex and the innovator mitomycin, however, are identical in terms of steps required and time necessary for dissolution. The only difference is that Mitozytrex calls for a slightly smaller amount of sterile water - an inconsequential difference. With regard to stability and shelf life, storage conditions for unreconstituted Mitozytrex and the innovator mitomycin are identical.

Finally, even though FDA rejected the name, "MitoExtra," as the proprietary name for SuperGen's brand of mitomycin for injection, the company presents the name "MitoExtra" as the drug's trade name in the press release. FDA rejected this name because it suggests clinical benefits that have not been substantiated by data. Notwithstanding this rejection, the name "MitoExtra" is used "to market Mitozytrex (MitoExtra)." SuperGen also uses the name "MitoExtra" interchangeably with "Mitozytrex" as the proprietary name. The FDA-approved name for the drug, as it appears in the approved product labeling, is "Mitozytrex (mitomycin for injection)."

FDA believes the characterizations ofMitozytrex (mitomycin for injection) warrant clarification of the record. The company's press release concerned an oncology drug, and FDA has a practice of focusing enforcement resources on misleading information about products intended for life-threatening conditions. Moreover, the company's press release is particularly egregious in that it includes not only misleading statements about the benefits of the company's drug compared to other similar versions, but also statements that are demonstrably false. Under the circumstances, FDA determined it was imperative to correct the record, and to do so in a manner that would reached [sic] as many of the same recipients of the original false and misleading messages.

UNDISCLOSED ADVERSE INFORMATION

28. The public announcements, SEC filings, and statements to media representatives identified herein were each materially false and misleading when issued in that they falsely portrayed SuperGen as a growing, successful, well-managed, law-abiding, well controlled company, and a leader of its industry - and that it had a highly effective drug - Mitozytrex. These public announcements, SEC filings, and statements to media representatives did not make full, complete and timely disclosure of SuperGen's fraudulent illegal practices and failed to correct false and misleading statements made prior to March 14, 2003, in that they failed to disclose the following material adverse information:

(a) That Mitozytrex caused adverse reactions such as fever, anorexia, nausea and vomiting, together with myelosuppression and hemolytic uremic syndrome;

(b) That Mitozytrex was merely a bioequivalent to the innovator mitomycin. It differed from the innovator formulation only in that the Company's product contained HPCD and no evidence exists to support the Company's claims that Mitoyztrex is superior to the existing formulations of mitomycin;

(c) That there is no existing evidence that the addition of HPCD yields any clinical advantage over the original formulation of mitomycin;

(d) That SuperGen's Extra technology did not shield the drug at the injection site; and

(e) That the so-called "advantages" of the Company's product, including increased solubility, stability and shelf-life, were non-existent.

29. SuperGen failed to disclose, as required by the rules and regulations promulgated by the SEC, including, inter alia, Item 303 of Regulation S-K, 17 C.F.R. §229.303, et seq., the existence of "known trends or any known demand, commitments, events or uncertainties" at SuperGen that would "result in or that are reasonably likely" to have a material impact on the Company's net sales, revenues, income from operations or liquidity.

30. The undisclosed adverse information set forth in ¶28, is the type of information which, because of SEC regulations, regulations of the national stock exchanges and customary business practice, is expected by investors and securities analysts to be disclosed and is known by corporate officials and their legal and financial advisors to be the type of information which is expected to be and must be disclosed. For example, under Item 303 of Regulation S-K, promulgated by the SEC under the 1934 Act, there is a duty to: "Describe any known trends or uncertainties that have had or that the registrant reasonably expects will have a material favorable or unfavorable impact on net sales on revenues or income from continuing operations." 17 C.F.R. §229.303 (a)(3)(ii).

31. As a result of these false and misleading statements, SuperGen stock traded at artificially inflated prices throughout the Class Period. Plaintiff purchased the stock of SuperGen, relying upon the integrity of the marketplace and in ignorance of the adverse, undisclosed information which was known to defendants, and has been damaged thereby. Had plaintiff and the members of the Class known the true facts, they would not have taken such action or suffered such damage. As a direct and proximate result of defendants' conduct, plaintiff and the Class have suffered substantial damages.

CLASS ACTION ALLEGATIONS

32. This is a class action on behalf of purchasers of SuperGen stock between April 18, 2000 and March 13, 2003 (the "Class"). Class members are so numerous that joinder of them is impracticable.

33. Common questions of law and fact predominate and include whether defendants: (i) violated the 1934 Act; (ii) omitted and/or misrepresented material facts; (iii) knew or recklessly disregarded that their statements were false; (iv) artificially inflated SuperGen's stock price; and (v) the extent of and appropriate measure of damages.

34. Plaintiff's claims are typical of those of the Class. Prosecution of individual actions would create a risk of inconsistent adjudications. Plaintiff will adequately protect the interests of the Class. A class action is superior to other available methods for the fair and efficient adjudication of this controversy.

CLAIM FOR RELIEF

35. Defendants violated § 10(b) and Rule 10b-5 by:

(a) Employing devices, schemes and artifices to defraud;

(b) Making untrue statements of material facts and omitting to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; and

(c) Engaging in acts, practices and a course of business that operated as a fraud or deceit upon the Class in connection with their purchases of SuperGen stock.

36. Class members were damaged. In reliance on the integrity of the market, they paid artificially inflated prices for SuperGen stock.

PRAYER

WHEREFORE, plaintiff prays for judgment as follows: declaring this action to be a proper class action; awarding damages, including interest; and such other equitable/injunctive relief as the Court may deem proper.

JURY DEMAND

Plaintiff demands a trial by jury. DATED: April 14, 2003 MILBERG WEISS BERSHAD HYNES & LERACH LLP PATRICK J. COUGHLIN

PATRICK J. COUGHLIN

100 Pine Street, Suite 2600 San Francisco, CA 94111 Telephone: 415/288-4545 415/288-4534 (fax)

MILBERG WEISS BERSHAD HYNES & LERACH LLP WILLIAM S. LERACH DARREN J. ROBBINS 401 B Street, Suite 1700 San Diego, CA 92101 Telephone: 619/231-1058 619/231-7423 (fax)

LAW OFFICES OF ALFRED G. YATES, JR. ALFRED G. YATES, JR. 519 Allegheny Building 429 Forbes Avenue Pittsburgh, PA 15219 Telephone: 412/391-5164 412/471-1033 (fax)

Attorneys for Plaintiff

CERTIFICATION OF INTERESTED ENTITIES OR PERSONS

Pursuant to Civil L.R. 3-16, the undersigned certifies that as of this date, other than the named parties, there is no such interest to report.

ATTORNEY OF RECORD FOR PLAINTIFF JOHN R. BLUM