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Executives

Susan Neath – Investor Relations

Ronald Martell – Chief Executive Officer

Mike Jackson – Interim Chief Financial Officer

Dr. Michael Perry – President and Chief Medical Officer

Analysts

Simos Simeonidis – Rodman & Renshaw

Poniard Pharmaceuticals, Inc. (OTCPK:PARD) Q3 2010 Earnings Call November 9, 2010 4:30 PM ET

Operator

Good day. And welcome to the Poniard Pharmaceuticals [Second] Quarter 2010 Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Susan Neath. Please go ahead, Susan.

Susan Neath

Good afternoon. And thank you for joining us. Poniard issued a press release today, which is available on the company’s website at www.poniard.com. Comments made on this call will contain forward-looking statements relating to, among other things, the commercial potential of the company’s picoplatin and product candidates, the company’s corporate strategies and objectives, regulatory and partnering efforts, product development activity, clinical and regulatory goals, financial condition, future expectations and prospects.

Actual results and events may differ materially from those indicated in these forward-looking statements based on a number of important factors, risks and uncertainties, including the company’s anticipated future operating losses, future capital requirements and ability to obtain future funding, the risks that strategic transactions may not be established on a timely basis on terms that are ultimately favorable to the company or at all, the potential safety, efficacy, and commercial viability of picoplatin, the risk that the company’s additional analysis of data from clinical trials of picoplatin may produce negative or inclusive results, or may be inconsistent with previously announced results or previously conducted trials, the company’s ability to retain key personnel, competition from third parties, the company’s ability to preserve and protect intellectual property rights, the company’s dependence on third-party manufacturers, suppliers, and other contractors, changes in technology, government regulation, and general market conditions, the receipt and timing of FDA and other required regulatory approval, and the other risks and uncertainties described in the company’s reports filed with the Securities and Exchange Commission, including the company’s annual report on Form 10-K for the year ended December 31, 2009, and the company’s Form 10-Q for the quarter ended September 30, 2010.

You should not place undue reliance on these forward-looking statements, which are based only on information currently known by the company. The company undertakes no obligations to update any forward-looking statements to reflect new information, events, or circumstances, after the day of this call or to reflect the occurrence of unanticipated events.

With that, I will now turn the call over to Ronald Martell, Chief Executive Officer of Poniard to speak about the third quarter financial results. Ron?

Ronald Martell

Thank you. And welcome to our third quarter 2010 financial results and corporate update conference call. Joining me on today’s call is Mike Jackson, our Interim Chief Financial Officer, along with Dr. Michael Perry, our President and Chief Medical Officer. During the call, we will provide a brief update on our strategic review process and the financial results for the third quarter of 2010, followed by a question-and-answer period.

As we have previously discussed, we believe that picoplatin represents an attractive asset as a late stage versatile anti-cancer compound with demonstrated activity and tolerability in a variety of solid tumor types.

Earlier this year, we implemented initiatives design to focus our resources on activities that we believe offer us to best opportunity to optimize the value of our picoplatin program for our shareholders, including undertaking a comprehensive review of strategic alternatives, such as a potential merger, sale of the company, partnership or capital raise.

Because this process is dynamic and as one might expect, subject to uncertainty and negotiation, I cannot comment on any alternatives that may be under consideration or the nature or the status of the overall process, except to assure you that the process of a key priority for the company and the management team and its advisors are working diligently to achieve a successful outcome. Concurrent with this effort, we are continuing to develop registration strategies in key indications.

I will now turn the call over to our President and Chief Medical Officer, Dr. Michael Perry, who will provide an update on those activities. Mike?

Michael Perry

Thank you, Ron. As you know, platinum-based chemotherapeutics continue to be standard of care for the treatment of solid tumors, such as colorectal, lung and ovarian cancers. Picoplatin was rationally designed to overcome a variety of platinum resistant mechanisms and as such, we believe may have significant potential within solid tumor indications where platinum agent was previously utilized, as well as where platinum agents have not been previously approved, such as in the treatment of prostate cancer.

Picoplatin has been administrative to over 1100 patients to date and a growing body of positive clinical evidence demonstrates that this important drug candidate may have a significant and clinically meaningful therapeutic impact on multiple tumor types.

The strength and breadth of our clinical data presents us with a variety of development options and we have been focusing on identifying registration strategies that maximize the likelihood of clinical success.

At present, we have on the shelf picoplatin clinical development plans and regulatory strategies in lung, colorectal, ovarian and prostate cancers. These plans and strategies are the result of many months of work and reflect input from clinical advisors and regulatory health authorities.

We believe that this portfolio of development strategies helps support the picoplatin value proposition by identifying potential pathways for efficiently advancing picoplatin into pivot clinical trials.

As we announced last week, Poniard was awarded grant funding of $244,000 as part of the government’s qualifying therapeutic discovery project. We plan to use these funds to support our ongoing clinical development efforts.

With that, I would now like to turn the call over to Mike Jackson to review our financial results. Mike?

Mike Jackson

Thanks Mike. I would like to provide you with a top level view of our financial results today. In the third quarter, we reported a net loss of $6.4 million, compared with a net loss of $9.9 million for the third quarter of 2009. We also reported a net loss of $24.9 million for the nine months ended September 30, 2010, compared with a net loss of $32.5 million for the same period in 2009.

Total operating expenses for the third quarter were $6.0 million, compared with $9.2 million for the third quarter of 2009. Regarding expenses, we continue to take steps to focus our resources, while maintaining key capabilities and operational flexibility for the long-term.

As of September 30, 2010, we had total cash and investment securities of $23.3 million. We believe that these resources will be adequate to fund our operations, while satisfying the minimum cash requirements of our loan facility at least through the end of 2010.

I’ll now turn the call back to you, Ron.

Ronald Martell

Thank you, Mike. Our main focus at Poniard has been and remains to be to optimize the value of picoplatin for our shareholders. Due to the involvement of third parties, both in our review of strategic alternatives and in the development of clinical strategies, we are limited in our ability to provide an update on our progress and we are limited in our ability to control timing.

That said, I want to emphasize that our focus and dedicated team here at Poniard is working tirelessly towards a successful outcome to these efforts and towards the creation of value for the long-term. We hope to be in a position to provide you with an update on these efforts in the near future.

At this time, I’d like to open up the call for questions. Operator?

Question-and-Answer Session

Operator

(Operator Instructions) Okay. Our first question is from Simos Simeonidis with Rodman & Renshaw. Please proceed.

Simos Simeonidis – Rodman & Renshaw

Hi, guys. Thanks for taking the questions. Ron, I think, Michael touched upon it earlier, but could you give us more color on whether you think you’ve completed the plans for further development of picoplatin. You’ve talked about it in the past – about some of the parallel development plan. Can you comment on where you’re at on that at this point?

Ronald Martell

Sure. Good afternoon, Simos. We have put a significant amount of work into the development of clinical protocols and regulatory strategies in the four tumor types where we have generated proof of concept Phase 2 data supporting a Phase 3 clinical trial and as a reminder, those are second line ovarian, second line small cell lung, first line colorectal and first line prostate.

As such, we’re in a position now such that when we complete the strategic alternatives either Poniard or Poniard with a partner, or Poniard in the form of another company would be in a position that we could expedite implementation of one or all four of those clinical programs as quickly as possible.

Simos Simeonidis – Rodman & Renshaw

And have you completed your discussions with the FDA on these plans?

Ronald Martell

Some of those programs are in ongoing dialogue and as one might expect, the ultimate clinical plan for the overall strategic plan for global development of pico will largely be driven by partner or the ultimate result of the strategic alternatives, so some of the questions that are outstanding with the agency or to finalize those efforts will want to finalize those in the form of the strategic alternatives outcome.

Simos Simeonidis – Rodman & Renshaw

That makes sense, yeah. And I’ll try this, even though you might not be able to answer. Could you comment on whether you’re happy with where the strategic alternative process is or are you aware you thought you would be at this point in the year?

Ronald Martell

Well, certainly, these processes always take longer than one wish that they would. Beyond that, it’s difficult for me to put any color or to what would ultimately amount to speculation around probability or timing or ultimate outcome, but the team has really implemented these initiatives that are designed to focus our resources and activities that we believe will drive the most value for our shareholders and we’re driving towards a successful outcome of the strategic alternatives -- activities.

Simos Simeonidis – Rodman & Renshaw

Great. Thanks taking the questions.

Operator

(Operator Instructions) At this time, there are no further questions in queue. I would like to turn the call back over to Mr. Ron Martell. Please proceed, sir.

Ronald Martell

Okay. Thank you, Operator. Again, we’d like to thank you all for joining our call today and thank you for your continued support for the company. Should you have any additional questions or want to discuss, please feel free to reach out to myself or the company directly. And again, we thank you for your support.

Operator

Ladies and gentlemen, this concludes today’s conference. Thank you for joining us and have a good day.

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