Quark Pharmaceuticals, Inc. is a clinical-stage pharmaceutical company engaged in discovering and developing novel therapeutic RNAi drug candidates. Quark has a fully integrated drug development platform that spans therapeutic target identification to drug development. Quark’s RNAi technology includes novel siRNA structures and chemistry that the Company believes provide Quark with freedom to operate in the siRNA intellectual property arena, as well as the ability to deliver siRNA locally and systemically to organs including the eye, ear, kidney, lung, spinal cord and others.

Quark’s lead product, PF-4523655 (RTP801i-14), completing Phase I/IIa clinical trials, is a synthetic, chemically modified, siRNA molecule designed to inhibit the expression of Quark’s proprietary target gene RTP801. PF-4523655 is licensed to Pfizer on an exclusive worldwide basis. Quark expects its partner, Pfizer, to continue to progress PF-4523655 through Phase II clinical trials for the treatment of diabetic macular edema (DME) and age-related macular degeneration (AMD). Quark’s current clinical pipeline includes also AKIi-5, developed by Quark for the prevention of acute kidney injury (AKI) following major cardiac surgery. AKIi-5, administered systemically by intravenous injection is evaluated in a multicenter Phase I/IIa clinical trial. Based on publicly available information, Quark believes this was the first siRNA delivered systemically in a human clinical trial. The US FDA has recently approved to us an IND for DGFi that is being developed for prevention and treatment of delayed graft function in kidney transplant patients.

In addition to the clinical drug candidates, Quark has a broad preclinical stage pipeline that is based on novel RNAi structure developed by Quark’s scientists and which, we believe, afford us freedom to operate in the RNAi intellectual property space. Our drugs target serious unmet medical needs in organs and cells where we have developed or are currently developing methods to deliver our siRNA drugs, systemic or local, non invasive or locally invasive. In September 2006 we signed a major license and collaboration agreement with Pfizer for our siRNA drug candidates inhibiting the proprietary target gene RTP801 for all indications. This agreement comes after several collaboration agreements we signed in previous years, primarily with Japanese pharmaceutical companies, among which are Mitsubishi Pharmaceutical, Sankyo, Astellas, Shionogi and Taisho as well as Astra Zeneca and Applied Biosystems. In most of these agreements, we have co-promotion rights in the USA and Europe to the products our partners develop, in addition to royalties and milestone payments.

We have a strong intellectual property position on the composition of matter of our drug candidates, delivery methodologies and target genes that we have discovered as well as on our basic target discovery platform, the BiFAR platform. We own or control a portfolio of patents and patent applications to protect our technologies and products comprised of over 30 granted U.S. and European patents and approximately 280 patent applications in the U.S. and elsewhere.

We cherish our collaborations with academia and leading experts in the scientific and medical communities. In each disease area we engaged the opinion leaders in the US to advise on the medical endpoints and consult or carry out the POC in clinically relevant animal studies. Their first-hand experience with our potential new drugs is of immense value and critical for us in our decision-making process for selection of a drug candidate for formal preclinical development and in assisting us in our dialog with potential partners.

Quark is a privately held company incorporated in California and employs approximately 100 people. Our headquarters are located at 6501 Dumbarton Circle, Fremont, CA 94555, USA, with offices and research and development facilities at 2990 Wilderness Place, in Boulder Colorado 80301 and at QBI Enterprises Ltd. in Israel. QBI Enterprises Ltd. is a wholly owned subsidiary of Quark Pharmaceuticals, Inc.