In August 2006, we entered into a product development and commercialization agreement with MedImmune to jointly develop and commercialize cancer drugs targeting heat shock protein 90 (Hsp90). Under the terms of this agreement, we share equally with MedImmune all development costs, as well as potential profits and losses from any future marketed products on a worldwide basis. MedImmune made non-refundable, up-front payments to us totaling $70 million upon entering into the agreement, and we could receive up to $215 million in milestone payments if certain late-stage development and sales objectives are achieved for Hsp90 products resulting from the collaboration.

In collaboration with MedImmune, we will also jointly develop a worldwide marketing and sales strategy for commercialized products. Infinity has the option to contribute up to 35% of the total promotional effort in the United States, and those costs will be shared equally as part of the collaboration. 

In February 2006, we entered into a collaboration agreement with Novartis Institute for BioMedical Research, Inc. to discover, develop, and commercialize drugs targeting Bcl protein family members for the treatment of a broad range of cancers. Under the terms of this agreement, we granted to Novartis an exclusive, worldwide license to research, develop, and commercialize pharmaceutical products that are based upon our proprietary Bcl inhibitors. Novartis paid us a $15 million up-front license fee, an affiliate of Novartis made a $5 million equity investment in us, and Novartis provided us research funding of approximately $10 million over an initial two-year research term that ends February 2008. Novartis is responsible for funding all further development and commercialization and is obligated to make payments to Infinity totaling over $370 million if certain research, development, and commercialization milestones are achieved. In addition, Novartis is obligated to pay royalties upon the successful commercialization of any products developed under the alliance.

With Novartis, we are conducting joint research to identify molecules for clinical development. Novartis will have primary responsibility for clinical development and commercialization of any collaboration products. Infinity has the right to co-detail any collaboration products in the United States, with our detailing costs to be reimbursed by Novartis.