We have developed eight different proprietary and several non-proprietary controlled release delivery technologies that can be utilized with a variety of oral dosage forms and drugs. We believe that these technologies are flexible and can be applied to develop a variety of pharmaceutical products, both generic and branded.

Our drug delivery technologies utilize a variety of polymers and other materials to encapsulate or entrap the active drug compound and to release the drug at varying rates and/or at predetermined locations in the gastrointestinal tract. In developing an appropriate drug delivery technology for a particular drug candidate, we consider such factors as:

• desired release rate for the drug;
• physicochemical properties of the drug;
• physiology of the gastrointestinal tract and manner in which the drug will be absorbed during passage through the gastrointestinal tract;
• effect of food on the absorption rate and transit time of the drug; and
• in-vivo/in-vitro correlation.

Our product development strategy is centered on both proprietary and non-proprietary drug delivery technology and capabilities. We have developed several proprietary drug delivery technologies covering the formulation of dosage forms with controlled-release and multiple modes of release rates. We have obtained four US patents, have filed one application, and expect to file three additional US patent applications and various foreign patent applications relating to our drug delivery technologies. We also apply several other proprietary controlled-release technologies that are not patented or for which we have not filed a patent application, and are working to develop additional new proprietary technologies for which we may seek patent protection.

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