On September 26, 2006 we entered into an agreement with Pfizer Inc. under which Pfizer acquires an exclusive worldwide license to our novel human gene RTP-801 and to siRNA molecules that modify its expression or function. Founded in 1849, Pfizer is the world’s largest research-based pharmaceutical company taking new approaches to better health. This agreement provides further recognition for our creative approach to discover conceptually new drugs to treat devastating diseases. RTP-801 is involved in the development of pathologic blood vessels, which accelerate the progression of Age-related Macular Degeneration (AMD), thus offering a new approach for a potential treatment of AMD. Pursuant to the agreement Pfizer shall pay to us significant development milestone payments for each indication and royalties from sales and will be responsible for the development of the drug candidates in collaboration with our development team. The second siRNA drug candidate under the Pfizer agreement is another siRNA molecule, RTP801i-1, inhibiting the same target, in development for COPD.

Sanwa Kagaku Kenkyusho Co. Ltd. License Agreement

In December 2004 we entered into an agreement with Sanwa Kagaku Kenkyusho Co. Ltd. for licensing the phase II compound BT16 to Sanwa for the treatment of dyslipidemia. Sanwa, a fully-integrated pharmaceutical company headquartered in Nagoya, Japan, is a division of Suzuken, the second largest pharmaceutical wholesaler in Japan. Sanwa’s established therapeutic and diagnostic products serve the diabetes, cardiovascular and inflammation marketplaces. The license provides Sanwa with exclusive development, manufacturing and marketing rights for the compound in Japan and other Asian countries. According to the agreement, we received an upfront payment and will receive payments at development milestones with additional royalties on sales. BT16 was found to be safe and well tolerated and to have a potential efficacy and clinical activity in suppressing triglyceride levels in animal and human studies. Further studies demonstrated that it also has insulin-sensitizing properties and the possibility of this compound being developed as a metabolic syndrome therapy in the future has been suggested.

Mitsubishi Pharma Corporation Collaboration Agreements

Quark and Mitsubishi Pharmaceutical Corporation of Japan first entered into a collaborative agreement on December 19, 1995 to discover and identify gene targets to develop novel therapeutics for neurodegenerative and ischemic diseases. Quark was successful in discovery of novel, functionally relevant genes. Based on the collaboration’s success, Quark’s relationship with Mitsubishi was expanded in August 1997 and again in July 2000 to include additional research programs. Reflecting the collaboration’s continued success and the achievement of several milestones, Quark and Mitsubishi again extended and broadened the agreement in February 2002 and 2004 to include additional research programs in depression and heart failure. Several of the targets identified by Quark in the earlier programs have progressed to drug discovery and development stage, either at Mitsubishi or within Quark. The first milestone was achieved in 1999 when Mitsubishi decided to start screening for chemical modulators of certain apoptosis gene targets useful in neurodegenerative diseases. A further milestone payment was received by Quark in 2004. The agreement provides exclusive commercialization rights to Mitsubishi in the Far East and QBI has specified marketing rights in all other territories. In September 2001, Mitsubishi made an equity investment in Quark, as part of Quark’s Series F financing.

Sankyo Co. Ltd. Collaboration Agreements

Quark’s collaboration with Sankyo Co. Ltd. is comprised of three separate agreements. The initial collaboration, entered into in September 1998, focused on several aspects of Type II diabetes. A second agreement with Sankyo was entered into in July 1999 and is focused around several aspects (partly proprietary of Sankyo) of autoimmune diseases and has successfully completed its goals. The third agreement, executed in May 2000, focuses on liver fibrosis. It provides for applying Quark’s gene discovery technology platform to identify novel targets suitable for the development of drugs to treat liver fibrosis. In September 2001, Sankyo made an equity investment in Quark, as part of Quark’s Series F financing.

Fujisawa Pharmaceutical Co. Ltd. Collaboration Agreements

In March 1999, Quark and Fujisawa Pharmaceutical Co. Ltd., today Astellas, agreed to collaborate on target discovery to treat stroke via neuron protection and facilitation of post-stroke recovery. Fujisawa funded Quark’s research and development activities and has exclusive rights to the resulting products, with an option granted to Quark to co-market certain products in the US and the European Community. In March 2001, Quark and Fujisawa broadened their research collaboration beyond target gene discovery into drug discovery to treat stroke. The programs were extended in March 2002 and again in March 2003. Under the terms of the agreement, Quark has rights to co-market products in North America and the European Union countries. In 2004 Quark and Fujisawa entered into a further collaboration agreement for target discovery in diabetes. In 2001, Fujisawa made an equity investment in Quark, as part of Quark’s Series F financing.

Taisho Pharmaceutical Co. Ltd. Collaboration Agreement

In September 1999, Quark and Taisho Pharmaceutical Co. Ltd. of Japan entered into a collaborative research and license agreement in the field of kidney diseases. The collaboration’s aims were to identify genes, analyze genes and pathways that cause chronic kidney disease and to develop a therapeutic treatment for kidney fibrosis. Target genes were discovered, and initial small molecule hits have been identified by Quark. Several of the targets identified by Quark have progressed to drug discovery and development stage either at Taisho or within Quark. Under the terms of the agreement, Quark has rights to co-market products in North America and the European Union countries. In September 2001, Taisho made an equity investment in Quark, as part of Quark’s Series F financing.

Shionogi & Co. Ltd. Collaboration Agreement

The research and license agreement with Shionogi commenced in January 2000 aiming to discover genes and proteins, new targets and pathways therapeutically important for treating osteoarthritis. Targets have been identified, and the collaboration has progressed to the drug discovery stage (bioassay construction/HTS). According to the agreement Shionogi has exclusive rights to a limited number of targets it may select for Japan and the Far East and Quark has specified co-marketing rights in all other countries of the world.