Licensing Agreements

Sopherion entered into an exclusive licensing agreement with Zeneus Pharma Ltd for commercialization of Myocet™ in North America. Financial terms of the agreement were not disclosed. Zeneus Pharma currently markets Myocet in the United Kingdom, Austria, France, Germany, Ireland, Italy, Portugal and Spain. The drug therapy was originally discovered and developed by the Liposome Company.

Myocet has been approved by the European and Canadian regulatory agencies for first-line therapy in combination with cyclophosphamide for patients with metastatic breast cancer. Under the terms of the agreement, Sopherion intends to launch Myocet in Canada no later than the third quarter of 2005. In the United States, Sopherion will manage the regulatory process, and pending FDA approval, be responsible for the commercialization of this therapy. To date, several large clinical trials of Myocet have been completed in the United States, Canada and Europe. Company intends to conduct an additional Phase III clinical study prior to filing a New Drug Application.