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<b><font style="font-family: 'Times New Roman', Times">5.  </font></b>
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<b><font style="font-family: 'Times New Roman', Times">PREPAID
EXPENSES</font></b>
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As of December 31, 2010 and 2009, there was
$17.7 million and $19.0 million, respectively, of
prepaid costs associated with the purchase of the antigen used
in the manufacture of PROVENGE, which Diosynth RTP, Inc.
(“Diosynth”) is obligated to manufacture.
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In addition, as of December 31, 2010 and 2009, there was
$7.3 million and $3.6 million, respectively, included
in prepaid expenses and other current assets and other assets on
our consolidated balance sheets related to prepaid costs
associated with agreements to provide second source suppliers
for materials used in the manufacture of PROVENGE.
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