Tercica is currently working to gain clinical insights and commercialize new products on three
distinct levels:

• Expanded Clinical Studies for Tercica Products In keeping with our commitment to further expand the utility of our products, Tercica is conducting various clinical studies to investigate the effects and indications for Increlex^® (mecasermin [rDNA origin] injection) and Somatuline^® Depot (lanreotide) Injection.
• Combination Products with Genentech In July 2007, Tercica announced a worldwide collaboration with Genentech in which Tercica will develop and commercialize two next-generation growth hormone products. Both products will contain Nutropin AQ^® (somatotropin [rDNA origin] injection), Genentech's recombinant human growth hormone, in combination with Increlex^® (mecasermin [rDNA origin] injection). In the first of these two new product candidates, specific doses and ratios of growth hormone and IGF-1 are being optimized to see if they promote enhanced statural growth in children. A study to evaluate this product candidate began enrolling patients in January 2008. The second product candidate, containing different doses and ratios of growth hormone and IGF-1, will be assessed for its ability to improve body composition in adults who suffer from adult growth hormone deficiency.
• New Specialty Indications with Insmed Incorporated In March 2007, Insmed provided Tercica with opt-in rights for development and commercialization of Insmed's product that combines IGF-1 and BP3 for the treatment of certain conditions such as myotonic muscular dystrophy and HIV adipose redistribution syndrome (HARS). Next steps for the partnership will be based on the outcome of certain Phase II clinical studies that are currently underway.

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