Rheumatoid Arthritis, or RA, is an autoimmune disease characterized by inflammation of the joint lining, called the synovium. According to Datamonitor, RA is estimated to affect approximately 4.3 million people are affected by RA in the United States, Japan and Europe. Total reported worldwide sales of protein therapeutics used for the treatment of RA were $7.6 billion in 2005 and are expected to grow to $10 billion in 2010. Because approximately two-thirds of the RA patient population experiences pain, stiffness and fatigue on a daily basis notwithstanding the administration of currently available treatments, it is believed that there is a large unmet medical need in the RA patient population for an effective drug therapy.

Systemic Lupus Erythematosus, or SLE, is a chronic condition with episodic periods of disease activity, known as flares, and periods of remission. According to Datamonitor, SLE is estimated to affect 236,000 people in the United States.

Non-Hodgkin’s Lymphoma and Chronic Lymphocytic LeukemiaNHL is the fifth most common cancer, and according to the American Cancer Society, affects approximately 350,000 people in the United States, with approximately 56,000 new cases diagnosed each year. According to the National Cancer Institute, CLL is estimated to affect 70,000 people in the United States. Approximately 10,000 new cases of CLL are diagnosed each year according to the American Cancer Society.

In less than 24 months, the Company designed, developed and submitted to the FDA an Investigational New Drug application, or IND, for its lead product candidate, TRU-015. Currently, TRU-015 is being tested in a Phase IIb clinical trial for the treatment of rheumatoid arthritis which was initiated in September 2006.

TRU-015 was developed for use in multiple indications such as rheumatoid arthritis and systemic lupus erythematosus. The Company’s TRU-016 program is focused on the development of product candidates directed to CD37, an antigen that is present on B cells, for the treatment of patients with non-Hodgkin’s lymphoma and chronic lymphocytic leukemia.

To date, none of the Company’s product candidates has been approved for marketing and sale to patients.

Research and development expenses increased from $6.7 million in the six months ended June 30, 2005 to $13.9 million in the six months ended June 30, 2006.

General and administrative expenses increased from $1.7 million in the six months ended June 30, 2005 to $5.1 million in the six months ended June 30, 2006.

Net interest income (expense) increased from $152,000 in the six months ended June 30, 2005 to $856,000 in the six months ended June 30, 2006.