Pharmion - Product Pipeline - Thalidomide Pharmion, VidazaŽ, Satraplatin, and MGCD0103

Pharmion is building a portfolio of innovative products that provide additional tools to physicians in the fight against serious diseases. To this end, we aggressively pursue opportunities to license products that are supported by strong clinical data and meet medical needs in the targeted areas of hematology and oncology.

Vidaza^Ž (azacitidine for injection)
Thalidomide Pharmion
Satraplatin
MGCD0103
Amrubicin

Vidaza^Ž (azacitidine for injection)
We obtained worldwide rights to Vidaza from Pharmacia & Upjohn Company, now part of Pfizer, Inc., in June 2001. Vidaza is the first approved treatment for Myelodysplastic Syndromes, or MDS, and the first of a new class of drugs known as demethylating agents to be approved. We launched Vidaza for commercial sale in the U.S. in July 2004. Enrollment is complete for a Phase III clinical trial in MDS patients examining the effect of Vidaza on the survival of 354 high risk MDS patients as compared to treatment with best supportive care with or without a chemotherapy agent. Top-line data from the survival study are expected to be available in the second half of 2007. Pending the outcome of the trial, we intend to use data generated in the study as the basis of a submission of a Marketing Authorization Application (MAA) to the European Agency for the Evaluation of Medicinal Products (EMEA) as soon as possible following receipt of final results of the study. In 2005, net sales of Vidaza were $125.6 million, which represented approximately 57% of our total net sales for 2005, compared to $47.1 million in 2004, or approximately 36% of total net sales for 2004.

Thalidomide Pharmion 50mg (thalidomide)
We obtained marketing rights to thalidomide from Celgene Corporation for all countries outside of North America, Japan and mainland China. Thalidomide has become a standard of care for the treatment of relapsed and refractory multiple myeloma, a cancer of the plasma cells in the bone marrow and there is a growing body of data that demonstrates its benefit as a first-line treatment of this disease. We began selling thalidomide in Europe on a compassionate use or named patient basis under a risk management program in the third quarter of 2003 while we seek full regulatory approval for this drug in Europe and several additional countries. Thalidomide Pharmion 50mg has been approved as a treatment for relapsed and refractory multiple myeloma in Australia, New Zealand, Turkey, Israel, South Korea, and Thailand. Although thalidomide has become a standard of care for the treatment of relapsed and refractory multiple myeloma, these regulatory approvals represent the first, and to date, only, regulatory approvals for this indication. Pending further data review, we expect that results of a pivotal Phase III clinical trial in multiple myeloma trial announced in January 2006 will form the basis of a Marketing Authorisation Application to the EMEA for thalidomide in the treatment of first-line multiple myeloma by early 2007. In 2005, net sales of thalidomide were $79.4 million, which represented approximately 36% of our total net sales for 2005, compared to $65.3 million in 2004, or approximately 50% of total net sales for 2004.

Satraplatin
In December 2005, we obtained commercialization rights to Satraplatin from GPC Biotech AG for Europe, Turkey, the Middle East, Australia and New Zealand. Satraplatin is the only oral platinum-based compound in advanced clinical development. Satraplatin has shown promising safety and efficacy as demonstrated by improvement in progression-free survival in a randomized study of first-line treatment of patients with hormone-refractory prostate cancer (“HRPC”) and is currently the subject of a Phase III registration trial as second-line chemotherapy treatment for patients with HRPC. If the results of this pivotal Phase III registration trial are positive, we expect data from the trial to form the basis of a Marketing Authorisation Application in Europe that we expect to submit to the EMEA in early 2007. We also believe that satraplatin may have efficacy in forms of cancer beyond prostate cancer and are exploring its use in other indications.

MGCD0103
In January 2006, we entered into a license and collaboration agreement with MethlyGene Inc. for the research, development and commercialization of MethlyGene’s histone deacetylase (HDAC) inhibitors in North America, Europe, Middle East and certain other markets. This collaboration includes MGCD0103, MethlyGene’s lead HDAC inhibitor, as well as the company’s pipeline of second-generation HDAC inhibitor compounds for oncology indications. As a single agent therapy, it has completed one Phase I clinical trial with daily dosing in solid tumors and a second Phase I clinical trial is underway in solid tumors on a three times per week schedule. Two Phase I clinical trials are ongoing in hematological cancers, one administered three times per week and the second twice per week. A Phase I/II combination trial with our DNA methylation inhibitor Vidaza was initiated in November 2005 and enrollment is under way at major cancer centers in the United States. Additional combination Phase I/II and monotherapy Phase II trials have begun in 2006.

Our licensing agreement with MethylGene for their oncology HDAC inhibitor program represents our growing commitment to the development of drugs for the epigenetic control of cancer. Both Vidaza, a demethylating agent and MGCD0103, an HDAC inhibitor, demonstrate specific effects on the regulation of gene expression. The potential synergies of MGCD0103 and Vidaza in combination may offer a significant advance in cancer therapy.

Amrubicin
In November 2006, we acquired amrubicin, a third generation synthetic anthracycline currently in Phase 2 development for small cell lung cancer (SCLC) in North America and the EU. In 2002, amrubicin was approved for sale in Japan in both SCLC and NSCLC. Since Jaunary 2005, amrubicin has been marketed by Nippon Kayaku, a Japanese pharmaceutical firm focused on oncology, which licensed Japanese marketing rights from Dainippon Sumitomo, the original developer of amrubicin.

We are focusing our development plan for the US and EU on SCLC. Based on Phase 2 results from Japanese studies, and on an ongoing Phase 2 development program, we intend to initiate a Phase 3 registrational study in second-line treatment of SCLC in the second half of 2007. Using data from these studies and supporting Japanese data, we expect to submit a New Drug Application (NDA) in the US and a Marketing Authorization Application (MAA) in the EU for amrubicin in the treatment of relapsed/refractory SCLC during 2009.