SciTech filed a patent application titled Liposomal Nanoparticles and other Formulations of Fenretinide For Use in Therapy and Drug Delivery (International Application No.: PCT/US2007/065556) on March 30, 2007 covering the aforementioned invention. SciTech has executed a carefully crafted IP position employing both use and composition claims articulated in its pending patent that clearly differentiates our technology from other investigators in the field. SciTech is also building a “picket fence” around its primary patent, including drafting provisional patents for delivery of additional synergistic compounds and an element that potentially enhances the efficacy of Fenretinide. This combination strategy will make it difficult for others to design around our patent. Its PCT application is being prosecuted in most of the world in order to provide local “freedom to operate.”

“Freedom to Operate” Discussion

SciTech’s intellectual property is centered on its unique nanoparticulate drug delivery system, ST-001. The initial API, Fenretinide is off patent, and therefore available. The ST-001 delivery system exclusively is comprised of elements that are available for purchase from bulk distributors, with no reach-through rights attached. The company recently contracted for the completion of an additional patentability study that further reaffirmed the novelty of its claims. Given that ST-001 cleared the initial and secondary patentability hurdles, and none of the elements of its makeup have reach-through rights attached, SciTech is confident in its “freedom to operate.”