CORRECTING and REPLACING MGI PHARMA Reports Fourth Quarter and Full Year 2005 Financial Results

The corrected release reads:

MGI PHARMA REPORTS FOURTH QUARTER AND FULL YEAR 2005 FINANCIALRESULTS

-- 2005 Revenue Increases 43% Year-Over-Year to $279.4 Million--

-- 2005 Aloxi(R) Injection Sales Total $248.5 Million--

-- 2006 Total Revenue Projected to Increase to $370-$385 Million--

-- Five Pivotal Programs Supported By 2006 R&D Investment--

MGI PHARMA, INC. (NASDAQ:MOGN), an oncology- and acutecare-focused biopharmaceutical company, today announced that totalrevenue for 2005 increased 43% to $279.4 million, including Aloxi(R)(palonosetron hydrochloride) injection sales of $248.5 million. GAAPnet loss for 2005 was $132.4 million, or $1.81 per diluted share. Asdescribed below under "Reconciliation of GAAP to Pro Forma Earnings,"pro-forma net income for 2005, which excludes amortization of acquiredproduct intangible assets and acquired in-process research anddevelopment expenses, was $28.1 million, or $0.37 per diluted share.At December 31, 2005, MGI PHARMA's cash and marketable debtinvestments totaled $104.2 million.

"We significantly expanded our commercial and R&D opportunitiesand accelerated our expansion into acute care in 2005 while achievingour target for pro forma operating income. With five pivotal programsongoing and two currently marketed products, we believe we haveassembled a portfolio capable of generating significant revenue andearnings growth," said Lonnie Moulder, President and CEO of MGIPHARMA. "In 2006, our growth plans for Aloxi injection includedeploying an expanded acute care sales team to increase our focus onthe hospital segment of the market and a targeted direct-to-consumeradvertising campaign. We will be ready to launch Dacogen(TM) injectionupon approval for the treatment of MDS, and are on track to submit theNDA for Saforis(TM) oral suspension early in the second quarter."

Fourth Quarter Results

Total revenues for the fourth quarter of 2005 were $81.1 millioncompared to $65.3 million in the fourth quarter of 2004. Product salesincreased to $79.8 million in the fourth quarter of 2005 from $64.5million in the fourth quarter of 2004. During the fourth quarter of2005, U.S. sales of Aloxi injection totaled $67.0 million compared to$56.0 million in the fourth quarter of 2004. Sales of Gliadel(R) Wafer(polifeprosan 20 with carmustine implant) were $8.5 million for thefourth quarter of 2005.

Total costs and expenses increased to $254.1 million in the fourthquarter of 2005 from $66.9 million in the fourth quarter of 2004.Fourth quarter 2005 acquired in-process research and developmentexpense related to the acquisition of Guilford Pharmaceuticals totaled$156.9 million. Selling, general and administrative expenses increasedto $36.6 million for the fourth quarter of 2005 from $19.4 million forthe same period in 2004, primarily due to higher headcount followingthe acquisition, investment in the Aloxi brand, and pre-launchexpenses related to Dacogen (decitabine) injection. Research anddevelopment expenses in the fourth quarter of 2005 were $31.4 million,compared to $26.6 million in the fourth quarter of 2004, whichincluded milestone payments for the filing of regulatory applicationsfor Dacogen injection totaling $12.5 million. The year-over-yearincrease in baseline R&D expenses is primarily due to expenses relatedto our late stage clinical development programs for Dacogen injection.The Company reported a GAAP net loss of $169.6 million, or $2.19 perdiluted share, in the 2005 fourth quarter compared to a net loss of$1.8 million, or $0.03 per share, in the 2004 fourth quarter. Asdescribed below under "Reconciliation of GAAP to Pro Forma Earnings,"pro-forma net loss for the 2005 fourth quarter was $10.8 million, or$0.14 per diluted share, compared to a pro forma net income of $11.2million, or $0.15 per diluted share, in the 2004 fourth quarter.

Annual 2005 Results

Total revenues increased to $279.4 million for 2005 compared to$195.7 million in 2004. Aloxi injection sales increased 56% year overyear to $248.5 million. Selling, general and administrative expensesof $89.0 million for 2005 increased from $73.8 million in 2004primarily due to higher headcount following the acquisition ofGuilford Pharmaceuticals, pre-launch expenses related to Dacogeninjection, and investment in the Aloxi brand. Research and developmentexpenses in 2005 increased to $70.9 million from $62.6 million in2004. Research and development expenses for 2004 included $16.7million in initial Dacogen injection license expense, in addition tomilestone payments for the filing of regulatory applications forDacogen injection totaling $12.5 million, and a $2.5 million milestonepayment for successful achievement of an end of phase 2 milestone forAloxi injection in PONV. The year-over-year increase in baseline R&Dexpenses is primarily due to expenses related to our late stageclinical development programs for Dacogen injection.

For the year ended December 31, 2005, MGI PHARMA's GAAP net loss,including $156.9 million of acquired in-process research anddevelopment expense related to the Guilford transaction, was $132.4million, or $1.81 per diluted share, compared to a net loss of $85.7million, or $1.23 per diluted share, for the year ended December 31,2004. Pro-forma net income and EPS for 2005 were $28.1 million and$0.37 per diluted share, respectively, compared to a 2004 pro formanet income of $31.3 million, or $0.42 per share.

Reconciliation of GAAP to Pro Forma Earnings: GAAP refers togenerally accepted accounting principles in the U.S. MGI PHARMA'spro-forma earnings per diluted share and pro-forma net income excludeamortization of product acquisition intangible assets, acquiredin-process research and development expenses, and license initiationand product candidate development milestone payments, and reflects atax rate that we believe would approximate our actual tax rate for theperiod. Prior pro forma 2005 financial results assumed a tax rate of35% without any adjustments. We are reporting pro forma results inaddition to, and not as a substitute for, financial measurescalculated in accordance with GAAP. The Company provides these proforma numbers to facilitate a comparison of our business from periodto period and to allow investors to analyze our business results. Weencourage investors to carefully consider our results under GAAP, aswell as our pro forma disclosures and the reconciliation between thesepresentations to more fully understand our business. Reconciliationsbetween GAAP results and pro forma results are presented at the end ofthis news release.

Recent Highlights

Aloxi(R) Injection: The former Guilford acute care sales team hasbeen trained and is now actively promoting Aloxi injection tohospital-based oncologists. A scale-up of this team is expected to becompleted in the first quarter. The Company anticipates a three-foldincrease in hospital-focused sales force activity in support of Aloxiinjection and an impact on sales growth beginning in the secondquarter of 2006. Preparations are also underway for a targeteddirect-to-consumer advertising campaign, which is planned to roll outduring the second quarter.

Dacogen(TM) Injection: MGI PHARMA responded to the Dacogeninjection Approvable Letter during the fourth quarter of 2005, and theFDA accepted this response with a Prescription Drug User Fee Act(PDUFA) goal date of May 15, 2006. MGI PHARMA expects to be preparedto commercialize this product within several weeks of FDA approval.Dacogen injection is being evaluated in a broad clinical developmentprogram consisting of more than 20 clinical trials, including phase 2and 3 studies in elderly patients with acute myeloid leukemia (AML), aphase 2 trial of an alternate dosing regimen in patients withmyelodysplastic syndromes (MDS), and a phase 3 EORTC-sponsored trialin patients with MDS.

Saforis(TM) Oral Suspension: A meeting was held with the FDA todiscuss the Saforis(TM) oral suspension NDA submission during thefourth quarter of 2005. Following this meeting, MGI PHARMA remains ontrack to submit this NDA early in the second quarter of 2006.

Aquavan(R) Injection: Following analysis of data from a phase 2dose-ranging study of Aquavan(R) (fospropofol disodium) Injection, adose was selected to advance into a pivotal program. This program,which will consist of two pivotal phase 3 trials and one safety study,will begin during the first quarter of 2006.

2006 Corporate Objectives:

This section and the "2006 Financial Outlook" section whichfollows it provide forward-looking information about MGI PHARMA'soutlook for 2006 based upon our current operations. The disclosurenotice paragraph regarding forward-looking statements at the end ofthis news release is especially applicable to these sections.

In 2006, MGI PHARMA is focused on building upon the commercial andR&D progress made in 2005 by executing on key initiatives to advanceour development pipeline and grow product sales.

-- Advance the Dacogen injection pivotal AML program

-- Initiate the Aquavan Injection pivotal program in 1Q06

-- Submit the Saforis oral suspension NDA in early 2Q06

-- Dacogen injection 2Q06 PDUFA goal date

-- Complete 1st ZYC101a pivotal trial 4Q06

-- Complete Aloxi injection PONV pivotal program 4Q06

-- Complete Aloxi oral capsule pivotal program 4Q06

-- Establish ex-U.S. commercialization paths for product candidates

2006 Proforma Financial Outlook

For the year ending December 31, 2006, the Company expects:

-- Total revenue to be in the range of $370 to $385 million, including:

-- Aloxi injection sales of $285 to $300 million;

-- Gliadel Wafer sales of $40 million; and

-- Dacogen injection sales of $25 million, if approved by the FDA during the second quarter;

-- Gross profit to be in the range of $245 to $258 million, excluding $8 million of amortization of product acquisition intangible assets;

-- SG&A expenses of $140 million;

-- Net R&D expenses of $88 million, excluding product candidate development milestone payments of approximately $2 million and expenses incurred for Symphony Neuro Development Company, a non-majority owned consolidated entity acquired in connection with the Guilford acquisition, a majority of which are reversed as minority interest prior to computing pre-tax income; and

-- Pro forma operating income from continuing operations to be in the range of $17 to $30 million.

Based on the market reaction to reimbursement program changes inearly 2005, MGI PHARMA anticipates that similar dynamics may impactthe first quarter of 2006, thereby reducing the likelihood of asequential increase in Aloxi injection sales from the fourth quarterof 2005 to the first quarter of 2006. The Company expects strongsequential growth in sales of Aloxi injection for the second throughfourth quarters of 2006.

This guidance excludes the impact of FASB 123R, which is expectedto be in the range of $8 to $10 million for the full year 2006.

Conference Call & Webcast Information

MGI PHARMA will broadcast its quarterly investor conference calllive over the Internet today, Wednesday, February 8, 2006 at 5:00 p.m.Eastern Time. The Company's executive management team will review 2005fourth quarter financial results, discuss operations, and provideguidance on MGI PHARMA's business outlook. All interested parties arewelcome to access the webcast via the Company's Web site atwww.mgipharma.com. The audio webcast will be archived on the Company'sWeb site for one week.

About MGI PHARMA

MGI PHARMA, INC. is an oncology- and acute care-focusedbiopharmaceutical company that acquires, researches, develops andcommercializes proprietary products that address the unmet needs ofpatients. MGI PHARMA markets Aloxi(R) (palonosetron hydrochloride)injection and Gliadel(R) Wafer (polifeprosan 20 with carmustineimplant) in the United States. The Company directly markets itsproducts in the U.S. and collaborates with partners to reachinternational markets. For more information about MGI PHARMA, pleasevisit www.mgipharma.com.

This news release contains certain "forward-looking" statementswithin the meaning of the Private Securities Litigation Reform Act of1995. These statements are typically preceded by words such as"believes," "expects," "anticipates," "intends," "will," "may,""should," or similar expressions. These forward-looking statements arenot guarantees of MGI PHARMA's future performance and involve a numberof risks and uncertainties that may cause actual results to differmaterially from the results discussed in these statements. Factorsthat might cause MGI PHARMA's results to differ materially from thoseexpressed or implied by such forward-looking statements include, butare not limited to, the ability of MGI PHARMA's product candidates tobe proven safe and effective in humans, to receive marketingauthorization from regulatory authorities, and to ultimately competesuccessfully with other therapies; continued sales of MGI PHARMA'smarketed products; development or acquisition of additional products;reliance on contract manufacturing; changes in strategic alliances;continued access to capital; ability of MGI PHARMA to successfullycomplete the integration of Guilford with its existing operations; therisk that the perceived advantages of the Guilford transaction may notbe achieved; and other risks and uncertainties detailed from time totime in MGI PHARMA's filings with the Securities and ExchangeCommission including its most recently filed Form 10-Q or 10-K. MGIPHARMA undertakes no duty to update any of these forward-lookingstatements.

MGI PHARMA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(In thousands, except per share data)

Three Months Ended Year Ended
December 31, December 31,
------------------- --------------------
2005 2004 2005 2004
--------- ------- --------- --------

Revenues:
Sales $ 79,841 $64,488 $ 273,992 $192,089
Licensing & Other 1,267 821 5,370 3,578
--------- ------- --------- --------
81,108 65,309 279,362 195,667
--------- ------- --------- --------

Costs and Expenses:
Cost of sales 29,103 20,870 97,370 60,847
Selling, general and
administrative 36,637 19,378 88,953 73,802
Research and development 31,434 26,624 70,891 62,625
Acquired in-process
research and development 156,900 23 156,900 83,117
--------- ------- --------- --------
254,074 66,895 414,114 280,391
--------- ------- --------- --------

Operating loss (172,966) (1,586) (134,752) (84,724)

Interest income 1,028 1,391 6,095 5,330
Interest expense (2,001) (1,769) (7,264) (5,989)
Other income 1,148 - 1,148 -
--------- ------- --------- --------

Loss before minority interest
and income tax (172,791) (1,964) (134,773) (85,383)

Minority interest 2,786 - 2,786 -
--------- ------- --------- --------

Loss before income tax (170,005) (1,964) (131,987) (85,383)

Provision (benefit) for
income tax (429) (120) 423 340
--------- ------- --------- --------

Net loss $(169,576) $(1,844) $(132,410) $(85,723)
========= ======= ========= ========

Net loss per common share
Basic $ (2.19) $ (0.03) $ (1.81) $ (1.23)
Diluted $ (2.19) $ (0.03) $ (1.81) $ (1.23)

Weighted average number of
common shares outstanding
Basic 77,319 70,939 73,123 69,897
Diluted 77,319 70,939 73,123 69,897
------------------------------


Consolidated Balance Sheets
Data
(unaudited)
(In thousands)

As of As of
December 31, December 31,
------------ --------------
2005 2004
------------ --------------

Cash and marketable debt securities,
unrestricted $ 104,203 $ 238,857
Total assets $ 471,127 $ 435,876
Total stockholders' equity $ 109,026 $ 114,510



MGI PHARMA, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET (LOSS) TO PRO FORMA NET INCOME
(LOSS) - UNAUDITED
(In thousands, except per share data)

Three Months Ended Year Ended
December 31, December 31,
------------------- --------------------
2005 2004 2005 2004
--------- ------- --------- --------

GAAP net loss $(169,576) $(1,844) $(132,410) $(85,723)

Adjustments:

Amortization of intangibles 1,917 341 3,540 1,366

Acquired in-process
research and development (A) 156,900 23 156,900 83,117

License payments (B) - 12,706 50 32,504
--------- ------- --------- --------

Subtotal of Adjustments 158,817 13,070 160,490 116,987

Pro forma net income/(loss)
before income tax (10,759) 11,226 28,080 31,264

Adjustment for income tax (C) - - - -
--------- ------- --------- --------

Pro forma net income/(loss) $ (10,759) $11,226 $ 28,080 $ 31,264
========= ======= ========= ========

(A) Represents in-process research and development for the acquisition
of Guilford for the year ended December 31, 2005 and for the
acquistions of Aesgen and Zycos for the year ended December 31,
2004.

(B) Reflects license initiation and product development candidate
milestones.

(C) No adjustment from GAAP for income tax provision or benefit. Prior
presentations of pro forma financial results assumed an effective
tax rate of 35%.



MGI PHARMA, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET LOSS PER COMMON SHARE TO PRO FORMA NET
INCOME (LOSS) PER COMMON SHARE - UNAUDITED
(In thousands, except per share data)

Three Months Year Ended
Ended December 31, December 31,
----------------- -----------------
2005 2004 2005 2004
------- ------- ------- -------

EPS (diluted) - GAAP $ (2.19) $ (0.03) $ (1.81) $ (1.23)

Adjustments:

Amortization of intangibles 0.02 0.01 0.04 0.02

Acquired in-process research
and development (A) 2.03 0.00 2.14 1.19

License payments (B) - 0.17 - 0.47
------- ------- ------- -------

Subtotal of Adjustments 2.05 0.18 2.18 1.67

Pro forma net income per common
share, diluted before income taxes (0.14) 0.15 0.37 0.42

Provision (benefit) for income
taxes (C) - - - -
------- ------- ------- -------

EPS (diluted) - Pro Forma $ (0.14) $ 0.15 $ 0.37 $ 0.42
======= ======= ======= =======

Weighted average number of
common shares outstanding
Basic 77,319 70,939 73,123 69,897
Diluted 77,319 75,691 76,852 74,879

(A) Represents in-process research and development for the acquisition
of Guilford for the year ended December 31, 2005 and for the
acquistions of Aesgen and Zycos for the year ended December 31,
2004.

(B) Reflects license initiation and product development candidate
milestones.

(C) No adjustment from GAAP for income tax provision or benefit. Prior
presentations of pro forma financial results assumed an effective
tax rate of 35%.