IW001 for IPF and PGD

In February 2010, Lung LLC entered into a Development Agreement with ImmuneWorks, Inc. to develop ImmuneWorks’ lead compound, IW001, a purified bovine (derived from cows) Type V Collagen oral solution for the treatment of Idiopathic Pulmonary Fibrosis (IPF), a progressive lung disease characterized by abnormal and excessive deposition of fibrotic tissue in the lung, and Primary Graft Dysfunction (PGD), a type of organ rejection in patients receiving lung transplant. We expect to commence human clinical testing of IW001 in 2010. In addition to funding the development program, we have been granted an option to acquire all of the issued and outstanding capital stock of ImmuneWorks. In November 2009, the FDA granted IW001 orphan drug exclusivity.