Related Party Transaction

9 Months Ended

Sep. 30, 2011

Related Party Transaction

Related Party Transaction

9.              Related Party Transaction

During the third fiscal quarter of 2011 we entered a contract research agreement with Prolexys Pharmaceuticals, Inc. under which we are conducting for Prolexys an early stage clinical trial investigating a novel compound as a product candidate for cancer therapeutics.  This contract was filed with the SEC on a Current Report on Form 8-K primarily because of the relationship of the management and ownership of Prolexys with us and our management and significant stockholders, and not because our rights or obligations under the Agreement are otherwise material to us.

Prolexys is 34.4% owned by BIH SA, which owns 8.2% of our outstanding common stock; 32.3% owned by Peter Friedli who is the Chairman of our Board of Directors and direct owner of 30.8% of our common stock; and 14.3% owned by Venturetec, Inc., which holds 12.7% of our common stock. Peter Friedli is the President and a 3% owner of Venturetec, Inc. C. Randal Mills, our President and Chief Executive Officer, and Lode Debrandandere, our Senior Vice President of Therapeutics, both serve on the Board of Directors of Prolexys, but have no other interest therein.

This arrangement is part of our ongoing efforts to expand our portfolio of product candidates, but we do not consider this arrangement to be material to us at this time.