It seems SuperGen Inc. decided to change its course.

Just weeks after disclosing plans to withdraw a proposed stock offering, the cancer drug development company raised $34 million through a stock-and-warrant sale.

SuperGen entered definitive agreements with new and existing institutional investors for the private placement of about 4.9 million common shares priced at $7 apiece, a markdown from the previous day's closing bid on the stock, as well as warrants for nearly another 730,000 shares. Those shares carry a $10 exercise price for the unnamed investors.

Late last month, Dublin, Calif.-based SuperGen said it was informing the SEC of its intent to pull out of a planned offering of 9.5 million common shares. The company did not return calls seeking comment.

The financing's per-share price reflected a 9 percent discount to Thursday's $7.70 closing price. On Friday, its stock (NASDAQ:SUPG) dropped 72 cents to close at $6.98.

Within the next 30 days, SuperGen will file a registration statement with the SEC for the stock's resale. New York-based Rodman & Renshaw Inc. is the transaction's placement agent.

The company, which had about 36 million shares outstanding prior to the offering, said the added funds allow it to progress its development and commercialization efforts related to Orathecin (rubitecan), Dacogen (decitabine) and Nipent (pentostatin for injection).

The latter product is approved as a single-agent treatment for patients with hairy-cell leukemia and remains under study for a number of hematological malignancies.

Orathecin is being reviewed, SuperGen having filed the final section of a rolling new drug application about six weeks ago. The fast-track product is for pancreatic cancer patients who are refractory or resistant to current therapies. It also is being studied in other tumor types, including breast, lung, gastric, hepatocellular, colorectal, ovarian and prostate. (See BioWorld Today, Jan. 28, 2004.)

Dacogen remains in clinical development for myelodysplastic syndromes.

SuperGen reported an $18.8 million net loss for the fourth quarter ended Dec. 31, at which time it had reserves of about $40 million in cash, cash equivalents, marketable securities, restricted cash and investments.