Age-related macular degeneration is the leading cause of central vision loss in the elderly. Age-related macular degeneration occurs when the light sensing cells in the central portion of the retina, called the macula, malfunction and over time cease to work. Wet age-related macular degeneration is the more severe form of the disease and accounts for approximately 10% of all age-related macular degeneration cases, yet it causes approximately 90% of blindness associated with age-related macular degeneration. The National Eye Institute estimates that the number of people with wet age-related macular degeneration in the United States will increase by 50% to 2.95 million by 2020.

Acute renal failure is a syndrome characterized by a rapid decline of kidney function leading to death in a high percentage of cases. Major cardiac surgery is one of the many causes of acute renal failure. During cardiac surgery, lack of oxygen caused by reduced local blood flow to the kidneys, followed by rapid reintroduction of oxygen, or reperfusion, to the kidneys upon removal of the patient from cardiopulmonary bypass, initiates a chain of events that can lead to acute renal failure.

According to American Heart Association estimates, of the over 6.8 million inpatient cardiovascular operations and procedures performed yearly in the United States, more than 700,000 are major adult cardiac surgery procedures, including over 500,000 coronary artery bypass graft procedures. At least 40% of patients undergoing cardiac surgery are at a moderate to high degree of risk for developing acute renal failure, according to a published study.

Most types of hearing loss arise from damage to, or loss of, sensory cells in the ear, known as cochlear hair cells, or their associated neurons due to hereditary or environmental causes, or a combination of the two. This type of hearing loss is called sensorineural hearing loss and it represents the largest market segment, with an estimated 17 million Americans affected.

RTP801i-14 is a synthetic, chemically modified siRNA molecule designed to inhibit the expression of the gene RTP801. Using its BiFAR platform, the Company discovered the gene RTP801 and identified it as hypoxia-inducible gene, which is a gene that is only activated and produces proteins under conditions of lack of, or reduced, oxygen supply, and as a likely major factor in the induction of various diseases associated with oxidative stress.

AKIi-5 is a synthetic, chemically modified siRNA molecule designed to temporarily inhibit the expression of the human gene p53. The primary indication for which the Company intends to develop AKIi-5 is the prevention of acute renal failure in patients undergoing major cardiovascular surgery.

The active ingredient of AHLi-11 is a synthetic, chemically modified siRNA that is a temporary and reversible inhibitor of p53, and is the same active ingredient as in AKIi-5.

CTPi-1 is a synthetic, chemically modified siRNA molecule designed to inhibit the proprietary target RTP801. In 2006, the Company exclusively licensed to Pfizer the right to develop and commercialize all siRNA inhibitors of RTP801, including CTPi-1, for all therapeutic indications.

BT16 is a small molecule, originally developed by the Hebrew University of Jerusalem. BT16 acts on the nuclear factor HNF-4, which had been independently identified in the Company’s BiFAR based discovery programs as a potential drug target for metabolic syndrome.

Research and development expenses were $5.3 million for the three months ended March 31, 2007, compared to $5.9 million for the three months ended March 31, 2006, a decrease of $605,000.

General and administrative expenses increased to $1.9 million for the three months ended March 31, 2007, compared to $692,000 for the three months ended March 31, 2006.

Net financial income increased to $254,000 for the three months ended March 31, 2007, from $188,000 for the three months ended March 31, 2006.