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&lt;p style="MARGIN: 0in 0in 0pt"&gt;&lt;b&gt;&lt;font style="FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman" size="2"&gt;18.&amp;nbsp; SUBSEQUENT EVENTS&lt;/font&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt"&gt;&lt;b&gt;&lt;font style="FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman" size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt"&gt;&lt;b&gt;&lt;font style="FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman" size="2"&gt;BioAssets Development Corporation&lt;/font&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt"&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman" size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman" size="2"&gt;In October 2010, we exercised the option to acquire privately-held BioAssets Development Corporation (&amp;#147;BDC&amp;#148;). Upon the closing of the merger, we will purchase all of the outstanding capital stock of BDC for $12.5 million, subject to net working capital and debt adjustments set forth in the merger agreement.&amp;nbsp;&amp;nbsp; For more information on BDC, please see Note 2.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="MARGIN: 0in 0in 0pt"&gt;&lt;b&gt;&lt;font style="FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman" size="2"&gt;ChemGenex Pharmaceuticals Limited&lt;/font&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt"&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman" size="2"&gt;&amp;nbsp;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"&gt;&lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman" size="2"&gt;In October, 2010, we signed a convertible note subscription agreement with ChemGenex Pharmaceuticals Limited, an Australian-based oncology focused biopharmaceutical company (&amp;#147;ChemGenex&amp;#148;).&amp;nbsp; Under the terms of the agreement, we will provide up to A$15 million to ChemGenex in return for a note that is convertible at A$0.50 per share.&amp;nbsp; This funding will support ChemGenex operations, including clinical activities to complete a planned New Drug Application submission to the U.S. Food and Drug Administration for omacetaxine for the treatment of chronic myelogenous leukemia (CML) patients who have failed two or more tyrosine kinase inhibitor (TKIs).&amp;nbsp; Separately, we also entered into option agreements with two of ChemGenex&amp;#146;s major shareholders, Stragen International N.V. and Merck Sant&amp;#233; S.A.S.&amp;nbsp; Under those option agreements, we have the right to acquire up to 19.9 percent of ChemGenex&amp;#146;s outstanding shares at A$0.70 per share. &amp;nbsp;We have the right to exercise the&amp;nbsp;options before the later of March 31, 2011, and ten business days after receipt of certain clinical trial data and related analyses from ChemGenex (the &amp;#147;Exercise Period&amp;#148;).&amp;nbsp; We have the right to&amp;nbsp;convert the notes to ChemGenex shares at any time, subject to&amp;nbsp;ChemGenex shareholder approval (to be sought by December 31, 2010) for conversion during the Exercise Period or if the options are exercised.&lt;/font&gt;&lt;/p&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/table&gt;
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&amp;nbsp;
BioAssets Development Corporation
&amp;nbsp;
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