Welcome to the website of Quark Pharmaceuticals, Inc. I thank you for taking the time to visit and learn more about our Company. It is a great pleasure for me to introduce to you our exciting accomplishments in the drive to discover new therapeutics to improve human health.

Founded in December 1994, Quark devoted its early years to developing its proprietary technology platform, “BiFAR™”, to identify novel drug targets. BiFAR™ combines high throughput gene inhibition technology with microarray expression profiling to identify genes responsible for disease processes. In collaboration with large pharmaceutical partners, we applied our BiFAR™ platform to identify new therapeutic targets in serious diseases with unmet medical needs. Today we are harvesting the fruits of the innovative targets we identified and the corresponding therapeutic concepts.

In early 2002, Quark determined that the most rapid means of achieving therapeutic intervention with the disease targets identified by BiFAR™ was to exploit the newly-discovered RNA interference, or RNAi, pathway. Since then, Quark has focused its drug discovery and development efforts on the exciting new class of drugs called small interfering RNAs, or siRNAs. We have developed a robust RNAi technology platform and established an independent intellectual property position in the siRNA field, and are now a world-leader in the development of RNAi-based therapeutics. Our siRNA technology capabilities include the identification of the optimal target sequences, design of optimal siRNA candidates using our expertise in chemical modifications to enhance pharmacologic properties, and our know-how in delivery of these compounds to target tissues and organs of interest.

I am now pleased to highlight some of the Company’s key milestones.

Clinical Programs

We recently initiated dosing in a Phase I study of the investigational neuroprotective agent, QPI-1007. This drug candidate has a proprietary siRNA structure that preserves RNAi activity while reducing potential off-target and immunostimulatory effects. The structure, we believe, provides Quark freedom to operate in the siRNA intellectual property space. QPI-1007 is being developed as a neuroprotectant for the treatment of optic neuropathies that result in the death of retinal ganglion cells (RGCs). We are currently evaluating QPI-1007 to treat sudden vision loss associated with non-arteritic anterior ischemic optic neuropathy (NAION), an unmet medical need. Demonstration of activity of QPI-1007 in NAION patients may provide the basis for examining activity in slower-progressing optic neuropathies such as glaucoma. The current Phase I study is an open-label, dose escalation, safety, tolerability and pharmacokinetic study in which QPI-1007 will be administered to all participating patients.

Quark’s development pipeline also features QPI-1002 (I5NP), the first systemically administered synthetic siRNA in human clinical trials. QPI-1002 is designed to temporarily inhibit expression of the stress-response gene, p53. QPI-1002 is being developed for the prevention of acute kidney injury (AKI) in patients undergoing major cardiovascular surgery, and for the prophylaxis of delayed graft function (DGF) in patients receiving deceased donor kidney transplants. We completed Phase I studies in these patient populations and an independent Data Safety Monitoring Board recommended continuation of QPI-1002 clinical development in both disease populations. QPI-1002 was granted Orphan designation by the US Food and Drug Administration (FDA) and the European Medicines Agency (EMA) for the prophylaxis of delayed graft function in kidney transplant patients. This designation provides regulatory support, financial incentives and marketing exclusivity once the drug is approved for marketing.

Quark’s partner, Pfizer, Inc., is currently evaluating the first siRNA we developed, PF-655, in two Phase II clinical studies, one in diabetic macular edema (DME) patients and the other in patients with wet, age-related macular degeneration (AMD). We actively collaborate in conducting these clinical studies. PF-655 is a synthetic, chemically modified siRNA designed to inhibit the expression of the RTP801 gene that was discovered by Quark through the BiFAR™ platform. RTP801 is a stress response gene that, among other pathways, is involved in abnormal blood vessel development and leakage in the eye. Under the licensing agreement, Pfizer has exclusive development rights to siRNA-mediated therapies that inhibit RTP801 for ophthalmic and non-ophthalmic indications, while Quark is eligible for development and sales-based milestone payments and royalties.

Preclinical Pipeline Utilizing Proprietary siRNA Structures and Compositions

Quark has a broad pipeline of siRNA drug candidates based on its novel structures and chemical compositions in a variety of disease areas where we have confirmed effective delivery of our synthetic siRNAs. We expect to develop additional RNAi drug candidates without the need to in-license third party intellectual property.

Financial

In April 2008 we announced the closing of a private financing totaling an aggregate of $27 million. The major investors were investment vehicles of SBI Asset Management Co., Ltd. and SBI Investment Co., Ltd., subsidiaries of the prestigious SBI Holdings, Inc. SBI extended this financing in June 2010 with an additional financing of $10 million as continued support to Quark for advancement of its RNAi drug pipeline.

Our strengths include the dedication and skills of our employees, the quality of our science and the depth of our development pipeline. Working to the best of our abilities, it is our intention to develop novel medicines to treat serious diseases, to build a profitable business and to maintain our unique work environment that values innovation, integrity and achievement.


Daniel Zurr

President and CEO