Item 8.01 Other Events

In connection with its transformation into a drug development company and the ongoing reduction of its workforce, the Company assigned its lease in Cambridge, MA to Agios Pharmaceuticals, Inc. ("Agios"), a privately held biopharmaceutical company, and subleased from Agios a smaller space at that location for a term to expire on or before, at the Company's election, June 30, 2009. These arrangements are effective as of November 1, 2008 and will reduce the Company's net lease expense in Cambridge by approximately $119,000 per month.

The landlord consented to the assignment and sublease. The Company will remain liable under the lease in the event of payment or other default by Agios for the balance of the term of the lease, which ends in August 2013.

In connection with this arrangement, the Company also sold to Agios equipment and furniture previously used in its drug repositioning business for a cash payment of $0.7 million. The Company estimates that its loss on the disposal of this equipment and furniture will be approximately $0.3 million, to be recorded in the fourth quarter of 2008.

---