755806--3/1/2006--NEORX

related topics

{product, candidate, development}

{stock, price, share}

{property, intellectual, protect}

{product, liability, claim}

{investment, property, distribution}

{provision, law, control}

{control, financial, internal}

{product, market, service}

{customer, product, revenue}

{personnel, key, retain}

{cost, regulation, environmental}

We have a history of operating losses, we expect to continue to incur losses, and we may never become profitable. We will need to raise additional capital to develop and commercialize our product candidates and fund operations Our potential products must undergo rigorous clinical testing and regulatory approvals, which could be costly, time consuming, and subject us to unanticipated delays or prevent us from marketing any products. We may take longer to complete our clinical trials than we project, or we may be unable to complete them at all. If testing of a particular product does not yield successful results, we will be unable to commercialize that product. Success in early clinical trials may not be indicative of results obtained in later trials. We are dependent on suppliers for the timely delivery of materials and services and may experience future interruptions in supply. If the $65 million proposed equity financing is not completed in a timely manner, or at all, we will be unable to pay our current debt obligations when they become due. If we cannot negotiate and maintain collaborative arrangements with third parties, our research, development, manufacturing, sales and marketing activities may not be cost-effective or successful. We face substantial competition in the development of cancer therapies and may not be able to compete successfully, and our potential products may be rendered obsolete by rapid technological change. If we are unable to protect our proprietary rights, we may not be able to compete effectively, or operate profitably. The use of our technologies could potentially conflict with the rights of others. We may incur substantial costs as a result of litigation or other proceedings relating to patent and other intellectual property rights. Product liability claims in excess of the amount of our insurance would adversely affect our financial condition. Our use of radioactive and other hazardous materials exposes us to the risk of material environmental liabilities, and we may incur significant additional costs to comply with environmental laws in the future. Even if we bring products to market, changes in healthcare reimbursement could adversely affect our ability to effectively price our products or obtain adequate reimbursement for sales of our products. The loss of key employees could adversely affect our operations. Risks Related to Our Common Stock Our common stock may be delisted from The Nasdaq Capital Market if we are unable to maintain compliance with Nasdaq Capital Market continued listing requirements. Our stock price is volatile and, as a result, you could lose some or all of your investment. Certain provisions in our articles of incorporation and Washington state law could discourage a change of control. Certain provisions of our Series B Convertible Preferred Stock and certain outstanding warrants may prevent or make it more difficult for us to raise funds or take other actions.

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755806--3/1/2006--NEORX_CORP