Licensing and Current Partnerships SLIL has a number of compounds in preclinical stages available for licensing. Several of the compounds have been identified as Lead Compounds for possible development as agents for treating cancer and other human diseases. The company received its first licensing revenues in the form of an up-front fee of $500,000 for its agreement with ELANCO (Eli Lilly) to test SLIL's polyamine product pipeline for certain animal health indications. In November, 2001 PPD, Inc. made an equity investment in the company of $4.7 million and secured an option to develop and commercialize one of SLIL's leading polyamine analog compounds-SLIL-11093-now completing preclinical development targeted to pancreatic and prostatic cancers. SLIL's future revenues are expected to come mainly from licensing and collaborative research agreements. These licensing agreements are expected to include up-front license fees, funded research, product development milestone payments, royalties on product sales and, potentially, equity investments. The Company is now actively seeking pharmaceutical company alliances, with a particular emphasis on diagnostic and therapeutic collaborations in human health. Several such discussions are currently underway. Companies interested in potential licensing opportunities should contact Marla K. Johnson for more information.