PPI-03306, an oral small molecule drug, selectively modulates a key enzyme involved in synthesis of serotonin, a chemical neurotransmitter implicated in regulation of sleep cycles. PPI-03306 is a product candidate for the treatment of sleep apnea, a disorder characterized by interrupted breathing during sleep.

We have exclusive worldwide rights to develop and commercialize PPI-03306 for the treatment of sleep apnea, as well as, certain other neurological conditions. We expect to initiate our first clinical trial of PPI-03306 in 2006.