Item 1.01 Entry into a Material Definitive Agreement

On June 8, 2009, we entered into an amendment to our Second Amended and Restated Collaboration and License Agreement dated as of November 30, 2005 with Genentech, Inc. In the amendment, Genentech agreed to waive its option on the potential development and commercialization of our LG842 and LG843 biotherapeutics programs, along with certain associated diligence requirements, in exchange for our agreement to waive our right to select up to four additional targets from the alliance for our own internal biotherapeutics drug discovery and to receive the initial milestone payment (at the filing of an investigational new drug application) for up to two Genentech products resulting from the alliance.

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