History

On May 31, 2002, Orbus Pharma Inc. (formerly BOVAR Inc.) (“Orbus” or “Company”) completed the purchase and subsequent amalgamation with Orbus Life Sciences Inc. (“Orbus LSI”). Prior to this amalgamation, Orbus LSI had started business operations on April 1, 2000 as a trading company in pharmaceutical products supplying the pharmaceutical, veterinary and food industries. BOVAR Inc. was created in Calgary, Alberta, Canada on June 1, 1977 under the name Bow Valley Resource Services Ltd. In May of 2003, the Company changed its name from BOVAR Inc. to Orbus Pharma Inc. to better reflect the activity of the Company.

Current Operations

Today Orbus has two licensed certified good manufacturing practice (“cGMP”) manufacturing plants: a 10,000 square foot dedicated antibiotics manufacturing plant located at 221 Shearson Crescent in Cambridge, Ontario; and a 21,000 square foot oral dose manufacturing and development site located at 20 Konrad Crescent in Markham, Ontario. The Markham facility also houses the head office of the Company.

Orbus is a dedicated generic drug development and manufacturing company and its main focus is the development and manufacture of generic oral dose products for human consumption. Orbus targets and develops generic versions of certain brand name products and will license these out to sales and marketing organizations. Orbus has targeted Europe and Canada as its primary markets to be followed by the United States. Orbus’ business model is to license its generic products to third parties who will distribute them in their respective markets under their own name. Orbus’ preference is to manufacture the product for these licensees generally under a five year supply agreement, but if the licensee does not want Orbus to supply the product then Orbus would generally negotiate a royalty payment.

The development and regulatory approval process to sell generic drugs in the European and North American markets is a long and expensive process and usually averages between three and four years. Most of the drugs currently under development by Orbus are expected to be approved in the years 2006 to 2008. Orbus has partnered under a cost and profit sharing agreement with Alfred E. Tiefenbacher GmbH and Co. of Germany on three of our drug development projects, the oxcarbazepine, metoprolol and famciclovir formulations. Orbus does not target any specific disease category when choosing a drug for generic development but will target drugs that can be manufactured in our existing facilities.

The Company is currently developing generic versions of the following drugs:

Drug Name                                    Indication

Oxcarbazepine                               Anti-epileptic

Cefuroxime Axetil                          Antibiotic

Metoprolol (once a day version)    Beta blocker

Fluvastatin                                    Cholesterol reducer

Other cholesterol reducer*           Cholesterol reducer

Amitryptaline                                Anti-depressant

Famciclovir                                  Anti viral


* For competitive reasons the drug names have not been disclosed

In 2005 the Company filed four separate U.S. patents on its internally developed technologies. Two of the patents are on extended release technologies and the other two on instant release technologies. Orbus is using these technologies in its generic drug developments. These patents are currently pending approval.

On May 3, 2004, the Company acquired two brand name products for the Canadian market from Merck Frosst Canada & Co. One of these products has since been sold and the other is being manufactured in our Markham facility under a license and supply agreement with Genpharm Inc.

In October 2004, the Company acquired from a company in the European Union, a generic dossier for cefuroxime axetil, - a product used to treat certain bacterial infections. The product received marketing approval in Denmark in November of 2005. The Company expects to complete a manufacturing site transfer to the Cambridge facility and complete registration of the product in other European countries before the end of 2006.

Orbus has approximately thirty employees of which twenty are dedicated to research and development and manufacturing activities, one in new business development, and nine in administration.

Orbus is listed on the Toronto Stock Exchange under the symbol ORB.