Quark Pharmaceuticals Extends Research Agreement With State University Of New York For Proprietary SiRNA Compounds For Acute Hearing Loss

Quark Pharmaceuticals, Inc., a
clinical-stage biopharmaceutical company focused on discovering and
developing novel RNA interference-based therapeutics, announced that
it has expanded its relationship with the State University of New York at
Buffalo, Center for Hearing & Deafness, which is the Company's primary site
for the pre-clinical studies of its product candidate, AHLi-11, for the
treatment of acute hearing loss. Quark initiated its collaboration with the
State University of New York in 2005.



The current studies, led by Professor Richard Salvi, focus on the
in-depth analysis of the effect of AHLi-11 and other molecules in
preventing chemotherapy induced hearing loss. Based on these studies, Quark
Pharmaceuticals expects to file an IND within 2007 for AHLi-11 for the
prevention chemotherapy-induced hearing loss.



AHLi-11 is a siRNA-based drug that temporarily inhibits the expression
of human gene p53. Cochlear hair cell apoptosis (cell death), a key factor
in several of the more common causes of acute hearing loss, is believed to
be induced by molecular mechanisms most likely associated with
p53-dependent stress response. Inhibition of p53, therefore, is suggested
as a potential modality for the prevention of ototoxic hearing loss, a
common side effect of certain drugs including aminoglycoside antibiotics
and cancer therapeutics such as cisplatin, as well as acoustic trauma.



Quark has demonstrated delivery of siRNA into target cells in rats and
monkeys along with its persistence in the cochlear hair cells for at least
15 days. In preclinical animal studies, AHLi-11 appears to protect cochlear
hair cells from apoptotic cell death induced by the chemotherapeutic
agents, cisplatin and carboplatin, and by acoustic trauma.



Daniel Zurr, CEO of Quark Pharmaceuticals, said, "We are encouraged by
the advancement of AHLi-11 for acute hearing loss and look forward to
filing an IND by year-end for the prevention of chemotherapy-induced
hearing loss. Up to a million people per year are treated with cisplatin in
the US and Europe, and the risk of serious hearing impairment is
particularly devastating in children. With this in mind, Quark will
continue its efforts to advance AHLi- 11 in response to this major unmet
medical need.



"We are also thrilled to expand our relationship with Professor Salvi
and his colleagues at the State University of New York as it will enable us
to deepen our understanding of the molecular processes underlying acute
hearing loss and to examine several variables related to the impact of
AHLi-11 as a curative measure. Our collaborations with leading academic
institutions mark the ongoing development of our pipeline and reinforce
Quark's expertise in the development of siRNA-based therapeutics that offer
the potential to treat a wide range of disease targets."
















About AHLi-11



AHLi-11 is a synthetic siRNA that is a temporary and reversible
suppressor of p53, and contains the same active compound as AKIi-5, Quark's
drug candidate for the prevention of acute renal failure. AHLi-11 is in
development for the prevention of acute hearing loss, initially induced by
the ototoxic cancer therapeutic agent cisplatin. AHLi-11 is based on
Quark's proprietary, patented concept of temporary and reversible
inhibition, for therapeutic purposes, of the expression of the
transcription factor human p53, which is associated with DNA repair and
apoptosis. In response to certain chemotherapeutic agents, such as
cisplatin and carboplatin, molecular mechanisms, most likely associated
with p53-dependent stress response, are suspected of triggering cochlear
hair cell apoptosis. Temporary inhibition of p53 prevents apoptosis,
allowing restoration of normal DNA and cellular integrity. The AHLi-11
active molecule was designed and patented by Quark. The Company has
licenses for certain RNAi intellectual property from Alnylam and Silence
Therapeutics



About Quark Pharmaceuticals, Inc.



Quark Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical
company focused on discovering and developing novel therapeutics based on
its proprietary gene discovery science and technology, with an initial
focus on drug candidates that work through the natural mechanism in the
cell known as RNA interference, or RNAi, for the treatment of diseases
associated with oxidative stress. Quark believes that its proprietary
target gene discovery platform, BiFAR(TM), combined with its ability to
design and successfully deliver synthetic molecules of the new class of
RNAi therapeutics known as small-interfering RNA, or siRNA, to specific
organs in the body, enables the Company to rapidly develop drug candidates.
Quark has two internally discovered and developed lead product candidates:
RTP801i-14 in phase 1 clinical trial for the treatment of wet age-related
macular degeneration, and AKIi-5 for the prevention of acute renal failure.
The Company has licensed RTP801i-14 to Pfizer on an exclusive worldwide
basis. Quark has, in addition, a product candidate portfolio of RNAi
therapeutics based on novel targets and therapeutic concepts discovered
using BiFAR(TM) and designed for the treatment of oxidative stress
associated diseases of the inner ear, lungs and additional organs of the
body.



Quark is headquartered in Fremont, California and operates research and
development facilities in Boulder, Colorado and Ness-Ziona, Israel.
Additional information is available at quarkpharma



Forward-looking statement



Various statements in this release concerning the Company's future
expectations, plans and prospects, including its intention to publicly
offer shares of its common stock, constitute forward-looking statements for
the purposes of the safe harbor provisions under The Private Securities
Litigation Reform Act of 1995. Actual results may differ materially from
those indicated by these forward-looking statements as a result of various
important factors, including risks related to fluctuations in our stock
price, as well as those risks more fully discussed in the "Certain Factors
That May Affect Future Results" section of the Company's most recent
Quarterly Report on Form 10-Q on file with the Securities and Exchange
Commission. In addition, any forward- looking statements represent the
Company's views only as of today and should not be relied upon as
representing its views as of any subsequent date. The Company does not
assume any obligation to update any forward-looking statements.


Quark Pharmaceuticals, Inc.

quarkpharma