Cancer is a group of diseases characterized by the uncontrolled growth and spread of abnormal cells. As cancer progresses, the tumor cells may invade other tissues throughout the body producing additional tumors, called metastases. Cancer growth can cause tissue damage, organ failure and, ultimately, death.

In North America, cancer is expected to strike one in two men and one in three women in their lifetimes and has recently surpassed heart disease as the leading cause of death in the United States. The American Cancer Society estimates that in 2006 approximately 1,399,790 new patients in the United States will be diagnosed with cancer and that there will be approximately 564,830 patient deaths attributable to these cancers.

Typically, cancer treatment is given sequentially and can include surgery, radiation therapy, chemotherapy and hormone therapy. Although a particular therapy may initially be effective, tumor cells often react to therapeutic treatment by increasing the production of proteins that afford them a survival advantage, which enable them to become resistant to therapy, multiply and spread to additional organs. As a result, many patients progress rapidly through all available therapies and ultimately die.

These product candidates are designed to selectively inhibit the production of proteins that are associated with treatment resistance and that are over-produced in response to a variety of cancer treatments.

The development program for the Company’s lead product candidate, OGX-011, is focused on reducing clusterin production to enhance treatment sensitivity and delay tumor progression in patients who have not fully developed treatment resistance and to restore treatment sensitivity in patients who have developed treatment resistance.

The development program for the Company’s second product candidate, OGX-427, is focused on reducing heat shock protein 27 (Hsp27) production to enhance treatment sensitivity and delay tumor progression in patients who have not fully developed treatment resistance and to restore treatment sensitivity in patients who have developed treatment resistance.

The development program for the Company’s third product candidate, OGX-225, is focused on reducing the production of both insulin-like growth factor binding protein-2 (IGFBP-2) and insulin-like growth factor binding protein-5 (IGFBP-5) with a single product to enhance treatment sensitivity and delay tumor progression in patients who are resistant to hormone ablation therapy.

General and administrative expenses for the nine months ended September 30, 2006 were $1.6 million compared to $1.1 million for the nine months ended September 30, 2005, an increase of $0.5 million.

Interest income for the nine months ended September 30, 2006 was $0.36 million compared to $0.16 million for the nine months ended September 30, 2005, an increase of $0.20 million.