<SEC-DOCUMENT>0000950123-11-047285.txt : 20110509
<SEC-HEADER>0000950123-11-047285.hdr.sgml : 20110509
<ACCEPTANCE-DATETIME>20110509143342
ACCESSION NUMBER:		0000950123-11-047285
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		8
CONFORMED PERIOD OF REPORT:	20110331
FILED AS OF DATE:		20110509
DATE AS OF CHANGE:		20110509

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GTX INC /DE/
		CENTRAL INDEX KEY:			0001260990
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				621715807
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-50549
		FILM NUMBER:		11822743

	BUSINESS ADDRESS:	
		STREET 1:		175 TOYOTA PLAZA
		STREET 2:		7TH FLOOR
		CITY:			MEMPHIS
		STATE:			TN
		ZIP:			38103
		BUSINESS PHONE:		901-523-9700

	MAIL ADDRESS:	
		STREET 1:		175 TOYOTA PLAZA
		STREET 2:		7TH FLOOR
		CITY:			MEMPHIS
		STATE:			TN
		ZIP:			38103
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>c16570e10vq.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<HTML>
<HEAD>
<TITLE>e10vq</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#C16570tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 10pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 10pt"><B>FORM 10-Q</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>(Mark One)</B>
</DIV>


<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 10pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT style="font-family: Wingdings">&#254;</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD><B>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>


<!-- xbrl,dc -->
<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%"><B>For the quarterly period ended March&nbsp;31, 2011</B></DIV>
<!-- /xbrl,dc -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>OR</B></DIV>


<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 10pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT style="font-family: Wingdings">&#111;</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%"><B>For the transition period from <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>
Commission file number: 000-50549</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 10pt"><B>GTx, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">
(Exact name of registrant as specified in its charter)</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of <BR>
incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>62-1715807</B><BR>
(I.R.S. Employer Identification No.)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>175 Toyota Plaza</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>7</B><B><SUP style="FONT-size: 85%; vertical-align: text-top">th</SUP> Floor</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>Memphis, Tennessee</B><BR>
(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>38103</B><BR>
(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>(901)&nbsp;523-9700</B><BR>
(Registrant&#146;s telephone number, including area code)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Indicate by check mark whether the registrant (1)&nbsp;has filed all reports required to be filed
by Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12&nbsp;months (or
for such shorter period that the registrant was required to file such reports), and (2)&nbsp;has been
subject to such filing requirements for the past 90&nbsp;days. Yes <FONT style="font-family: Wingdings">&#254;</FONT> No <FONT style="font-family: Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Indicate by check mark whether the registrant has submitted electronically and posted on its
corporate web site, if any, every Interactive Data File required to be submitted and posted
pursuant to Rule&nbsp;405 of Regulation&nbsp;S-T during the preceding 12&nbsp;months (or for such shorter period
that the registrant was required to submit and post such files). Yes <FONT style="font-family: Wingdings">&#111;</FONT> No <FONT style="font-family: Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the definitions of &#147;large
accelerated filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule&nbsp;12b-2 of the
Exchange Act.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="center" valign="top">Large accelerated filer <FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" valign="top">Accelerated filer <FONT style="font-family: Wingdings">&#254;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" valign="top">Non-accelerated filer <FONT style="font-family: Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" valign="top">Smaller reporting company <FONT style="font-family: Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" valign="top">(Do not check if a smaller reporting company)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Indicate by check mark whether the registrant is a shell company (as defined in Rule&nbsp;12b-2 of
the Exchange Act). Yes <FONT style="font-family: Wingdings">&#111;</FONT> No <FONT style="font-family: Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As of May&nbsp;3, 2011, 51,719,187 shares of the registrant&#146;s Common Stock were outstanding.
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>




<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">





<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="C16570tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>GTx, INC.<BR>
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2011<BR>
INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="86%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>PAGE</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C16570101">PART I &#151; FINANCIAL INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C16570102">Item&nbsp;1. Financial Statements (unaudited)</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><A href="#C16570103">Condensed Balance Sheets as of March&nbsp;31, 2011 and December&nbsp;31, 2010</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><A href="#C16570104">Condensed Statements of Operations for the Three Months Ended March&nbsp;31, 2011 and 2010</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><A href="#C16570105">Condensed Statements of Cash Flows for the Three Months Ended March&nbsp;31, 2011 and 2010</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><A href="#C16570106">Notes to Condensed Financial Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C16570107">Item&nbsp;2. Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C16570108">Item&nbsp;3. Quantitative and Qualitative Disclosures About Market Risk</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C16570109">Item&nbsp;4. Controls and Procedures</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#C16570110">PART II &#151; OTHER INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C16570111">Item&nbsp;1A. Risk Factors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C16570112">Item&nbsp;5. Other Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#C16570113">Item&nbsp;6. Exhibits</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c16570exv10w29.htm">Exhibit 10.29</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c16570exv10w50.htm">Exhibit 10.50</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c16570exv10w58.htm">Exhibit 10.58</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c16570exv31w1.htm">Exhibit 31.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c16570exv31w2.htm">Exhibit 31.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c16570exv32w1.htm">Exhibit 32.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c16570exv32w2.htm">Exhibit 32.2</A></FONT></TD></TR>
</TABLE>
</DIV>
<DIV align="left">
<!-- /TOC -->
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16570tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="left">
<A name="C16570101"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>PART I: FINANCIAL INFORMATION</B>
</DIV>

<DIV align="left">
<A name="C16570102"></A>
</DIV>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>ITEM 1.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>FINANCIAL STATEMENTS</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>GTx, Inc.</B>
</DIV>

<DIV align="left">
<A name="C16570103"></A>
</DIV>
<!-- xbrl,bs -->
<DIV align="center" style="font-size: 10pt"><B>CONDENSED BALANCE SHEETS</B></DIV>
<!-- xbrl,body -->

<DIV align="center" style="font-size: 10pt"><B>(in thousands, except share data)</B></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2011</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2010</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>ASSETS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,790</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,181</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Short-term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,575</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">450</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts receivable, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">683</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Inventory</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">171</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prepaid expenses and other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">875</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,360</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property and equipment, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,040</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Intangible and other assets, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,850</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">64,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">848</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accrued expenses and other current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,576</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,112</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deferred revenue &#151; current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,345</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,305</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred revenue, less current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,721</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other long-term liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">497</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments and contingencies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock, $0.001 par value: 60,000,000
shares authorized; 51,719,187 shares issued
and outstanding at March&nbsp;31, 2011 and
December&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">405,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">404,555</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accumulated deficit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(355,475</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(352,880</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,727</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities and stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">64,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 10pt">The accompanying notes are an integral part of these financial statements.
</DIV>
<!-- /xbrl,bs -->

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16570tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>GTx, Inc.</B>
</DIV>

<DIV align="left">
<A name="C16570104"></A>
</DIV>
<!-- xbrl,op -->
<DIV align="center" style="font-size: 10pt"><B>CONDENSED STATEMENTS OF OPERATIONS</B></DIV>
<!-- xbrl,body -->

<DIV align="center" style="font-size: 10pt"><B>(in thousands, except share and per share data)</B></DIV>

<DIV align="center" style="font-size: 10pt"><B>(unaudited)</B></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three Months Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2011</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2010</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenues:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Product sales, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">799</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Collaboration revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,066</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,778</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,577</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Costs and expenses:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cost of product sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Research and development expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,650</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">General and administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,509</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total costs and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,310</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Loss) income from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,897</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,267</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net (loss)&nbsp;income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,595</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44,339</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net (loss)&nbsp;income per share:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic and diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.05</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average shares used in computing
net (loss)&nbsp;income per share:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic and diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,719,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,420,901</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 10pt">The accompanying notes are an integral part of these financial statements.
</DIV>
<!-- /xbrl,op -->

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16570tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">




<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>GTx, Inc.</B>
</DIV>

<DIV align="left">
<A name="C16570105"></A>
</DIV>
<!-- xbrl,cf -->
<DIV align="center" style="font-size: 10pt"><B>CONDENSED STATEMENTS OF CASH FLOWS</B></DIV>
<!-- xbrl,body -->

<DIV align="center" style="font-size: 10pt"><B>(in thousands)</B></DIV>

<DIV align="center" style="font-size: 10pt"><B>(unaudited)</B></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three Months Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2011</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2010</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows from operating activities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net (loss)&nbsp;income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,595</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44,339</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjustments to reconcile net (loss)&nbsp;income to net cash used in
operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">438</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Share-based compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,664</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Directors&#146; deferred compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Deferred revenue amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,066</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(50,778</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Impairment of intangible asset</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Foreign currency transaction (gain)&nbsp;loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(61</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Changes in assets and liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Accounts receivable, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(113</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Inventory</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Prepaid expenses and other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(788</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,790</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(190</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(442</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Accrued expenses and other long term liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(766</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">398</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net cash used in operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,229</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,245</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows from investing activities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Purchase of property and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(83</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Purchase of short-term investments, held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,125</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,959</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Proceeds from maturities of short-term investments, held to maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,675</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net cash used in investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,141</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(367</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash flows from financing activities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Payments on capital lease and financed equipment obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net cash used in financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net decrease in cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,391</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,638</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, beginning of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,219</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,790</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,581</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 10pt">The accompanying notes are an integral part of these financial statements.
</DIV>
<!-- /xbrl,cf -->


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16570tocpage">Table of Contents</A></H5><P>
<!-- xbrl,ns -->

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><B>GTx, Inc.</B>
</DIV>
<DIV align="left">
<A name="C16570106"></A>
</DIV>
<DIV align="center" style="font-size: 10pt"><B>NOTES TO THE CONDENSED FINANCIAL STATEMENTS</B></DIV>

<DIV align="center" style="font-size: 10pt"><B>(in thousands, except share and per share data)</B><br>
<B>(unaudited)</B></DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>1. Business and Basis of Presentation</B>
</DIV>

<!-- xbrl,body -->
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Business</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">GTx, Inc. (&#147;GTx&#148; or the &#147;Company&#148;), a Delaware corporation incorporated on September&nbsp;24, 1997
and headquartered in Memphis, Tennessee, is a biopharmaceutical company dedicated to the discovery,
development and commercialization of small molecules that selectively target hormone pathways for
the treatment of cancer, cancer supportive care, and other serious medical conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company is developing selective androgen receptor modulators (&#147;SARMs&#148;), including
Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM </SUP>(GTx-024). SARMs are a new class of drugs with the potential to prevent and
treat muscle wasting in patients with cancer and other musculoskeletal wasting or muscle loss
conditions including chronic sarcopenia (age related muscle loss). Additionally, the Company is
developing Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> (GTx-758), a selective estrogen receptor alpha agonist, for first
line treatment of advanced prostate cancer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In December&nbsp;2008, the Company submitted a New Drug Application (&#147;NDA&#148;) for toremifene 80 mg, a
selective estrogen receptor modulator (&#147;SERM&#148;), to reduce fractures in men with prostate cancer on
androgen deprivation therapy (&#147;ADT&#148;) to the U.S. Food and Drug Administration (&#147;FDA&#148;). In October
2009, the Company received a Complete Response Letter from the FDA regarding its NDA for toremifene
80 mg notifying the Company that the FDA would not approve the Company&#146;s NDA in its present form as
a result of certain clinical deficiencies identified in the Complete Response Letter, which
deficiencies could only be addressed by conducting an additional pivotal Phase III clinical trial
of toremifene 80 mg. In March&nbsp;2011, the Company reacquired full rights to its toremifene program
following the termination by the Company and Ipsen Biopharm Limited (&#147;Ipsen&#148;) of the collaboration
and license agreement, which was entered into by the Company and Ipsen in September&nbsp;2006 and
amended in March&nbsp;2010. During the second quarter of 2011, the Company decided to discontinue its
toremifene 80 mg development program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company markets FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> (toremifene citrate) 60 mg tablets, approved for the
treatment of advanced metastatic breast cancer in postmenopausal women in the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Basis of Presentation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The accompanying unaudited condensed financial statements reflect, in the opinion of
management, all adjustments (consisting of normal recurring adjustments) necessary for a fair
presentation of GTx&#146;s financial position, results of operations and cash flows for each period
presented in accordance with accounting principles generally accepted in the United States for
interim financial information and with the instructions to Form 10-Q and Article&nbsp;10 of Regulation
S-X. Accordingly, information and footnote disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted in the United States have been
condensed or omitted from the accompanying condensed financial statements. These interim condensed
financial statements should be read in conjunction with the audited financial statements and
related notes thereto, which are included in the Company&#146;s Annual Report on Form 10-K for the year
ended December&nbsp;31, 2010. Operating results for the three months ended March&nbsp;31, 2011 are not
necessarily indicative of the results that may be expected for the entire fiscal year ending
December&nbsp;31, 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Use of Estimates</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The preparation of condensed financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the condensed financial statements, and the reported amounts of revenues
and expenses during the reporting period. Actual amounts and results could differ from those
estimates.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>GTx, Inc.<BR>
NOTES TO THE CONDENSED FINANCIAL STATEMENTS<BR>
(in thousands, except share and per share data)<BR>
(unaudited)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Revenue Recognition</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company recognizes revenue from product sales of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> less deductions for
estimated sales discounts and sales returns. Revenue from product sales is recognized when
persuasive evidence of an arrangement exists, title passes, the price is fixed or determinable, and
collectability is reasonably assured. The Company accounts for rebates to certain governmental
agencies as a reduction of product sales. The Company allows customers to return product within a
specified time period prior to and subsequent to the product&#146;s labeled expiration date. The
Company estimates an accrual for product returns, which is recorded as a reduction of product
sales, based on factors which include historical product returns and estimated product in the
distribution channel which is expected to exceed its expiration date. At March&nbsp;31, 2011 and
December&nbsp;31, 2010, the Company&#146;s accrual for product returns was $869 and $802, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Collaboration revenue consists of non-refundable upfront payments, license fees,
reimbursements for research and development activities, and milestone payments associated with the
Company&#146;s former collaboration and license agreements. Revenues from the Company&#146;s prior
collaboration and license agreements were recognized based on the performance requirements of the
specific agreements. The Company analyzed agreements with multiple element arrangements to
determine whether the deliverables under the agreement, including license and performance
obligations such as joint steering committee participation and research and development activities,
could have been separated or whether all of the deliverables must have been accounted for as a
single unit of accounting. Revenues from milestone payments for which the Company had no
continuing performance obligations were recognized upon achievement of the performance milestone,
as defined in the related agreement, provided the milestone was substantive and a culmination of
the earnings process had occurred. Performance obligations typically consisted of significant
milestones in the development life cycle of the related product candidates and technology, such as
initiation of clinical trials, achievement of specified clinical trial endpoints, filing for
approval with regulatory agencies and approvals by regulatory agencies. Due to the termination of
the Company&#146;s license and collaboration agreement with Ipsen in March&nbsp;2011, the Company recognized
collaboration revenue of $8,066 in the first quarter of 2011 as the Company has no further
performance obligations. Additionally, the Company recognized collaboration revenue of $54,856 in
the first quarter of 2010 due to the termination of the Company&#146;s license and collaboration
agreement with Merck&nbsp;&#038;&nbsp;Co., Inc. (&#147;Merck&#148;) in March&nbsp;2010. See Note 4, <I>Collaboration and License Agreements</I>, for further
discussion. As of March&nbsp;31, 2011, the Company had no ongoing collaborations for the development
and commercialization of its product candidates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Research and Development Expenses</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Research and development expenses include, but are not limited to, the Company&#146;s expenses for
personnel, supplies, and facilities associated with research activities, screening and
identification of product candidates, formulation and synthesis activities, manufacturing,
preclinical studies, toxicology studies, clinical trials, regulatory affairs activities, quality
assurance activities and license fees. The Company expenses these costs in the period in which
they are incurred. The Company estimates its liabilities for research and development expenses in
order to match the recognition of expenses to the period in which the actual services are received.
As such, accrued liabilities related to third party research and development activities are
recognized based upon the Company&#146;s estimate of services received and degree of completion of the
services in accordance with the specific third party contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Cash, Cash Equivalents and Short-term Investments</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company considers highly liquid investments with initial maturities of three months or
less to be cash equivalents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">At March&nbsp;31, 2011 and December&nbsp;31, 2010, short-term investments consisted of certificates of
deposit with original maturities of greater than three months and less than one year. As the
Company has the positive intent and ability to hold the certificates of deposit until maturity,
these investments have been classified as held to maturity investments and are stated at cost,
which approximates fair value.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>GTx, Inc.<BR>
NOTES TO THE CONDENSED FINANCIAL STATEMENTS<BR>
(in thousands, except share and per share data)<BR>
(unaudited)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Impairment of Long-Lived Assets</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company reviews long-lived assets for impairment whenever events or changes in facts and
circumstances are present, both internally and externally, that may indicate impairment of
long-lived assets held for use. An impairment loss is recognized when estimated future cash flows
are less than the carrying amount. The cash flow estimates are based on management&#146;s best
estimates, using appropriate and customary assumptions and projections at the time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Based upon the Company&#146;s decision to discontinue toremifene 80 mg development and after
analyzing future cash flows and estimates of fair market value from a market participant
perspective, the Company determined that its toremifene 80 mg intangible
asset was impaired and recorded an impairment charge of $1,598 during the three months ended March&nbsp;31, 2011.
The impaired intangible asset consisted of the unamortized portion of capitalized license fees paid
to Orion Corporation (&#147;Orion&#148;) related to the Company&#146;s toremifene 80 mg program. This license fee
was paid under the amended and restated license and supply agreement for the Company&#146;s exclusive
license from Orion to develop and commercialize toremifene-based products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The impairment charge was included in research and development expenses in the condensed
statement of operations for the three months ended March&nbsp;31, 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Income Taxes</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company accounts for deferred taxes by recognition of deferred tax assets and liabilities
for the expected future tax consequences of events that have been included in the financial
statements or tax returns. Under this method, deferred tax assets and liabilities are determined
based on the difference between the financial statement and tax basis of assets and liabilities
using enacted tax rates in effect for the year in which the differences are expected to reverse. A
valuation allowance is provided when it is more likely than not that some portion or all of the
deferred tax assets will not be realized. Accordingly, at March&nbsp;31, 2011 and December&nbsp;31, 2010,
net of the valuation allowance, the net deferred tax assets were reduced to zero. Income taxes are
described more fully in Note 9 to the Company&#146;s financial statements included in the Company&#146;s
Annual Report on Form 10-K for the year ended December&nbsp;31, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Other Income, net</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Other income, net consists of interest earned on the Company&#146;s cash, cash equivalents and
short-term investments, interest expense, foreign currency transaction gains and losses, and other
non-operating income or expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Subsequent Events</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company has evaluated all events or transactions that occurred after March&nbsp;31, 2011 up
through the date the condensed financial statements were issued.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">During the second quarter of 2011, the Company decided to discontinue its toremifene 80 mg
development program. Based upon this decision, the Company determined that the intangible asset
relating to the Company&#146;s toremifene 80 mg program was impaired. This intangible asset consisted
of the unamortized portion of capitalized license fees paid to Orion related to the Company&#146;s
toremifene 80 mg program. The Company considered this a recognizable subsequent event and,
therefore, recorded an impairment charge of $1,598 for the three months ended March&nbsp;31, 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">On May 6, 2011, the Company filed a Certificate of Amendment to the Company&#146;s Restated
Certificate of Incorporation with the Secretary of State of the State of Delaware to increase the number of
authorized shares of the Company&#146;s common stock, par value $0.001 per share, from 60,000,000 shares to 120,000,000
shares. The foregoing amendment was approved by the Company&#146;s stockholders at the Company&#146;s 2011
Annual Meeting of Stockholders held on May 5, 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">There were no other material recognizable or nonrecognizable subsequent events during the
period evaluated.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>GTx, Inc.<BR>
NOTES TO THE CONDENSED FINANCIAL STATEMENTS<BR>
(in thousands, except share and per share data)<BR>
(unaudited)</B>
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>2. Share-Based Compensation</B>
</DIV>

<!-- xbrl,body -->
<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Share-based payments include stock option grants under the Company&#146;s stock option and equity
incentive plans and deferred compensation arrangements for the Company&#146;s non-employee directors.
The Company recognizes compensation expense for its share-based payments based on the fair value of
the awards over the period during which an employee or non-employee director is required to provide
service in exchange for the award. The Company&#146;s share-based compensation plans are described more
fully in Note 3 to the Company&#146;s financial statements included in the Company&#146;s Annual Report on
Form 10-K for the year ended December&nbsp;31, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following table summarizes share-based compensation expense included within the condensed statements
of operations for the three months ended March&nbsp;31, 2011 and 2010:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three Months Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2011</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2010</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Research and development expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">509</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">846</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">General and administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">868</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total share-based compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,714</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Share-based compensation expense recorded in the condensed statements of operations as general and
administrative expense for the three months ended March&nbsp;31, 2011 and 2010 included share-based
compensation expense related to deferred compensation arrangements for the Company&#146;s non-employee
directors of $51 and $50, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company uses the Black-Scholes-Merton option pricing valuation model to value stock
options. The expected life of options is determined by calculating the average of the vesting term
and the contractual term of the options. The expected price volatility is based on the Company&#146;s
historical stock price volatility. The risk-free interest rate is determined using U.S. Treasury
rates where the term is consistent with the expected life of the stock options. Expected dividend
yield is not considered as the Company has not made any dividend payments and has no plans of doing
so in the foreseeable future. The amount of share-based compensation expense recognized is reduced
ratably over the vesting period by an estimate of the percentage of options granted that are
expected to be forfeited or canceled before becoming fully vested.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The fair value of options granted was estimated using the following assumptions for the
periods presented:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Three Months Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2011</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2010</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected price volatility</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">65.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">64.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Risk-free interest rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average expected life in years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="right">6.5 years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="right">6.5 years</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16570tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>GTx, Inc.<BR>
NOTES TO THE CONDENSED FINANCIAL STATEMENTS<BR>
(in thousands, except share and per share data)<BR>
(unaudited)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following is a summary of stock option transactions for all of the Company&#146;s stock option
and equity incentive plans since the Company&#146;s most recent fiscal year end:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Exercise Price</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Per Share</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options outstanding at December&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,430,495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.91</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Options granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,309,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Options forfeited or expired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,965</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.82</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options outstanding at March&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,719,030</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>3. Basic and Diluted Net Income (Loss) Per Share</B>
</DIV>

<!-- xbrl,body -->
<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Basic and diluted net income (loss)&nbsp;per share attributable to common stockholders is
calculated based on the weighted average number of common shares outstanding during the period.
Diluted net income (loss)&nbsp;per share also gives effect to the dilutive potential of common stock
consisting of stock options. Weighted average options outstanding to purchase shares of common
stock of 5,729,635 and 4,559,646 for the three months ended March&nbsp;31, 2011 and 2010, respectively,
were excluded from the calculations of diluted net income (loss)&nbsp;per share as inclusion of the
options would have had an anti-dilutive effect on the net income (loss)&nbsp;per share for the periods.
</DIV>

<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>4. Collaboration and License Agreements</B>
</DIV>

<!-- xbrl,body -->
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>University of Tennessee Research Foundation License Agreements</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The
Company and the University of Tennessee Research Foundation
(&#147;UTRF&#148;) have entered into a consolidated, amended and restated license agreement
(the &#147;SARM License Agreement&#148;) pursuant to which the Company was granted exclusive worldwide rights
in all existing SARM technologies owned or controlled by UTRF, including all improvements thereto,
and exclusive rights to future SARM technology that may be developed by certain scientists at the
University of Tennessee or subsequently licensed to UTRF under certain existing inter-institutional
agreements with The Ohio State University. Under the SARM License Agreement, the Company is
obligated to pay UTRF annual license maintenance fees, low single-digit royalties on net sales of
products and mid single-digit royalties on sublicense revenues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Additionally, the Company and UTRF had entered into an amended and restated license agreement
(the &#147;SERM License Agreement&#148;) pursuant to which the Company was granted exclusive worldwide rights
to UTRF&#146;s method of use patents relating to SERMs, including toremifene for chemoprevention of
prostate cancer. In light of the Company&#146;s decision to discontinue further clinical development of
toremifene 20 mg, the Company exercised its right to terminate the SERM License Agreement with UTRF
during the first quarter of 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Ipsen Collaboration and License Agreement</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In September&nbsp;2006, the Company entered into a collaboration and license agreement with Ipsen
(the &#147;Ipsen Collaboration Agreement&#148;) pursuant to which the Company granted Ipsen exclusive rights
in the European Union, Switzerland, Norway, Iceland, Lichtenstein, and the Commonwealth of
Independent States (the &#147;European Territory&#148;) to develop and commercialize toremifene in all
indications which the Company has licensed from Orion, which include all indications in humans
except the treatment and prevention of breast cancer outside of the United States.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>GTx, Inc.<BR>
NOTES TO THE CONDENSED FINANCIAL STATEMENTS<BR>
(in thousands, except share and per share data)<BR>
(unaudited)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In accordance with the terms of the Ipsen Collaboration Agreement, Ipsen paid the Company
&#128;23,000 as a license fee and expense reimbursement. In February&nbsp;2008, the Company earned a
milestone of &#128;1,000 (approximately $1,482) with the achievement of the primary endpoint in the
Company&#146;s completed pivotal Phase III clinical trial evaluating toremifene 80 mg to reduce
fractures in men with prostate cancer on ADT. This amount was
recognized as collaboration revenue in the first quarter of 2008. Under the Ipsen
Collaboration Agreement, the Company recorded deferred revenue of $29,330 related to the Ipsen
upfront license fee and expense reimbursement which was being amortized into revenue on a
straight-line basis over the estimated ten year development period for toremifene in the European
Territory.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In March&nbsp;2011, the Company reacquired full rights to its toremifene program following the
termination by the Company and Ipsen of the collaboration and license agreement, as amended (the
&#147;Amended Ipsen Collaboration Agreement&#148;). In exchange for reacquiring all of Ipsen&#146;s rights under
the Amended Ipsen Collaboration Agreement, the Company agreed to pay Ipsen a low single digit
royalty on net sales of toremifene 80 mg in the United States if approved for commercial sale.
During the three months ended March&nbsp;31, 2011, the Company recognized as collaboration revenue all
of the remaining $8,066 unamortized revenue that was deferred as of December&nbsp;31, 2010. The Company
recognized as collaboration revenue $922 for the three months ended March&nbsp;31, 2010 from the
amortization of the Ipsen deferred revenue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Merck &#038; Co., Inc. Collaboration and License Agreement</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In December&nbsp;2007, GTx and Merck entered into a global exclusive license and collaboration
agreement (the &#147;Merck Collaboration Agreement&#148;) governing the Company&#146;s and Merck&#146;s joint research,
development and commercialization of SARM compounds and related SARM products for all potential
indications of interest. In March&nbsp;2010, the Company reacquired full rights to its SARM program,
including Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP>, following the termination by the Company and Merck of the Merck
Collaboration Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Under the Merck Collaboration Agreement, the Company granted Merck an exclusive worldwide
license under its SARM-related patents and know-how. The Company conducted preclinical research of
SARM compounds and products, and Merck was primarily responsible under the terms of the agreement
for conducting and funding development and commercialization of products developed under the Merck
Collaboration Agreement. Merck paid the Company an upfront licensing fee of $40,000 and purchased
approximately $30,000 of the Company&#146;s common stock. In addition, Merck agreed to pay the Company
$15,000 in guaranteed cost reimbursements for research and development activities in equal annual
installments over a three year period beginning on the first anniversary of the effective date of
the Merck Collaboration Agreement. The Company received $5,000 from Merck in December&nbsp;2008, 2009
and 2010 as the first, second and third annual payments of cost reimbursements for research and
development activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company deferred the recognition of the upfront licensing fee of $40,000 and the $10,800
in equity premium received that represented the difference between the purchase price and the
closing price of the Company&#146;s common stock on the date the stock was purchased by Merck. These
payments were being recognized as collaboration revenue over the period of the Company&#146;s
performance obligation, which the Company estimated to be ten years. The $5,000 of cost
reimbursements received in both December&nbsp;2008 and December&nbsp;2009 were being recognized as
collaboration revenue over the remaining period of the Company&#146;s performance obligation. In March
2010, the Company reacquired full rights to the Company&#146;s SARM program following the termination by
the Company and Merck of the Merck Collaboration Agreement. In the first quarter of 2010, the
Company recognized as collaboration revenue all of the remaining $49,856 unamortized revenue that
was deferred as of December&nbsp;31, 2009, as well as the final $5,000 research and development
activities cost reimbursement due under the terms of the Merck Collaboration Agreement in December
2010 for which the Company had no further performance obligation.
</DIV>
<!-- /xbrl,ns -->

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="left">
<A name="C16570107"></A>
</DIV>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>ITEM 2.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following discussion should be read in conjunction with the condensed financial statements
and the notes thereto included in Part&nbsp;1, Item&nbsp;1 of this Quarterly Report on Form 10-Q.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Forward-Looking Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Quarterly Report on Form 10-Q contains forward-looking statements. The forward-looking
statements are contained principally in the sections entitled &#147;Management&#146;s Discussion and Analysis
of Financial Condition and Results of Operations&#148; and &#147;Risk Factors.&#148; These statements involve
known and unknown risks, uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from any future results, performances or
achievements expressed or implied by the forward-looking statements. Forward-looking statements
include statements about:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the anticipated progress of our research, development and clinical programs,
including whether any future clinical trials we conduct will achieve similar results to
clinical trials that we have successfully concluded;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the timing, scope and anticipated initiation and completion of any future
clinical trials that we may conduct;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the timing of regulatory submissions and the timing, scope and anticipated
outcome of related regulatory actions;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to establish and maintain potential new collaborative arrangements for the
development and commercialization of our product candidates;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ability to obtain and maintain regulatory approvals of our product candidates and any
related restrictions, limitations, and/or warnings in the label of an approved product
candidate;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to market, commercialize and achieve market acceptance for our product
candidates or products that we may develop;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to generate additional product candidates for clinical testing;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to protect our intellectual property and operate our business without
infringing upon the intellectual property rights of others; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our estimates regarding the sufficiency of our cash resources, expenses, capital
requirements and needs for additional financing, and our ability to obtain additional
financing.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In some cases, you can identify forward-looking statements by terms such as &#147;anticipates,&#148;
&#147;believes,&#148; &#147;could,&#148; &#147;estimates,&#148; &#147;expects,&#148; &#147;intends,&#148; &#147;may,&#148; &#147;plans,&#148; &#147;potential,&#148; &#147;predicts,&#148;
&#147;projects,&#148; &#147;should,&#148; &#147;will,&#148; &#147;would&#148; and similar expressions intended to identify forward-looking
statements. Forward-looking statements reflect our current views with respect to future events,
are based on assumptions and are subject to risks, uncertainties and other important factors. We
discuss many of these risks in this Quarterly Report on Form 10-Q in greater detail in the section
entitled &#147;Risk Factors&#148; under Part&nbsp;II, Item&nbsp;1A below. Given these risks, uncertainties and other
important factors, you should not place undue reliance on these forward-looking statements. Also,
forward-looking statements represent our estimates and assumptions only as of the date of this
Quarterly Report on Form 10-Q. You should read this Quarterly Report on Form 10-Q and the
documents that we incorporate by reference in and have filed as exhibits to this Quarterly Report
on Form 10-Q, completely and with the understanding that our actual future results may be
materially different from what we expect. Except as required by law, we assume no obligation to
update any forward-looking statements publicly, or to update the reasons actual results could
differ materially from those anticipated in any forward-looking statements, even if new information
becomes available in the future.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Overview</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Business Overview</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We are a biopharmaceutical company dedicated to the discovery, development and
commercialization of small molecules that selectively target hormone pathways for the treatment of
cancer, cancer supportive care, and other serious medical conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Business Highlights</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We are developing selective androgen receptor modulators, or SARMs, a new class of drugs with
the potential to prevent and treat muscle wasting in patients with cancer, and other
musculoskeletal wasting or muscle loss conditions, including chronic sarcopenia (age related muscle
loss). We have held End of Phase II meetings with the U.S. Food and Drug Administration, or FDA,
to discuss our proposed Phase III clinical development of Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> (GTx-024) for the
prevention and treatment of muscle wasting in patients with non-small cell lung cancer. Based upon
feedback from the FDA, we expect to initiate two pivotal Phase III clinical trials for this
indication in the third quarter of 2011. We also intend to continue our pursuit of a strategic
partnership or collaboration for the development and commercialization of SARMs, which includes
Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> for the prevention and treatment of muscle wasting in patients with cancer,
as well as other indications.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Additionally, we are developing Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> (GTx-758), a selective estrogen
receptor, or ER, alpha agonist for first line treatment of advanced prostate cancer. In September
2010, we announced that in a Phase II, open label, pharmacokinetic and pharmacodynamic clinical
trial in young healthy male volunteers, Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> suppressed serum total testosterone
to castrate levels, increased serum sex hormone binding globulin, and reduced serum free
testosterone, the form of testosterone which is available to prostate cancer cells for growth.
Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> was well tolerated and no serious adverse events were reported in the study.
We have met with the FDA and confirmed that the primary endpoint acceptable for approval for this
indication is the maintenance of castrate levels of serum testosterone (less than 50ng/dL) from day
28 to day 364. In the second quarter of 2011, we plan to initiate a Phase IIb open label clinical
trial evaluating Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> compared to Lupron Depot<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> (leuprolide acetate
for depot suspension), a luteinizing hormone releasing hormone, or LHRH, agonist for first line
treatment in men with advanced prostate cancer. We are also currently seeking a strategic
partnership or collaboration for the development and commercialization of Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP>
for the treatment of advanced prostate cancer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In December&nbsp;2008, we submitted a New Drug Application, or NDA, for toremifene 80 mg, a
selective estrogen receptor modulator, or SERM, to reduce fractures in men with prostate cancer on
androgen deprivation therapy, or ADT, to the FDA. In October&nbsp;2009, we received a Complete Response
Letter from the FDA regarding our NDA for toremifene 80 mg notifying us that the FDA would not
approve our NDA in its present form as a result of certain clinical deficiencies identified in the
Complete Response Letter, which deficiencies could only be addressed by conducting an additional
pivotal Phase III clinical trial of toremifene 80 mg. In March&nbsp;2011, we reacquired full rights to
our toremifene program following the termination by us and Ipsen Biopharm Limited, or Ipsen, of our
collaboration and license agreement, which was entered into by us and Ipsen in September&nbsp;2006 and
amended in March&nbsp;2010. We have evaluated the business case for toremifene 80 mg and concluded that
we will discontinue our toremifene 80 mg development program. This decision was due to the expense
and time required to conduct a second Phase III clinical trial, which the FDA has now confirmed
must be conducted prior to the FDA considering toremifene 80 mg for marketing approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We market FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> (toremifene citrate) 60 mg tablets, approved for the treatment
of advanced metastatic breast cancer in postmenopausal women in the United States.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Financial Highlights</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Our net loss for the three months ended March&nbsp;31, 2011 was $2.6&nbsp;million. Our net loss
included the recognition of the remaining $8.1&nbsp;million of deferred revenue due to the termination
of our license and collaboration agreement with Ipsen and FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> net product sales of
$1.2&nbsp;million. Additionally, research and development expenses for the three months ended March&nbsp;31,
2011 included an impairment charge of $1.6&nbsp;million related to our toremifene
80 mg intangible asset. We expect to incur significant operating losses in 2011 and for the
foreseeable future as we continue our clinical development and research and development activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">At March&nbsp;31, 2011, we had cash, cash equivalents and short-term investments of $49.4&nbsp;million,
compared to $58.6&nbsp;million at December&nbsp;31, 2010. We estimate that our current cash, cash
equivalents, and short-term investments, together with interest income and product revenue from the
sale of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>, will be sufficient to meet our projected operating requirements for
at least the next twelve months. We have based this estimate on our current business plan and
assumptions that may prove to be wrong. We could utilize our available capital resources sooner
than we currently expect, and we could need additional funding sooner than currently anticipated.
We believe that our current cash resources, together with interest income and product revenue from
the sale of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>, will be sufficient to enable us to initiate in 2011 our planned
pivotal Phase III clinical trials of Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> for the prevention and treatment of
muscle wasting in patients with non-small cell lung cancer and to initiate and complete our planned
Phase IIb clinical trial to evaluate Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> for first line treatment of advanced
prostate cancer. To complete the two Phase III clinical trials we expect to initiate in 2011 for
Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP>, we will need to obtain additional funding. Further, to conduct any
additional clinical trials for our product candidates, we will need to obtain additional funding
through partnerships and/or collaborations or the sale of our securities.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Research and Development</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Since our inception in 1997, we have been focused on drug discovery and development programs.
Research and development expenses include, but are not limited to, our expenses for personnel
associated with our research activities, screening and identification of product candidates,
formulation and synthesis activities, manufacturing, preclinical studies, toxicology studies,
clinical trials, regulatory affairs activities, quality assurance activities and license fees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We expect our research and development expenses for fiscal year 2011 to increase from fiscal
year 2010 and to be primarily focused on the following:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the continued clinical development of Ostarine&#153;;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the continued clinical development of Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP>; and</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the continued preclinical development of other potential product candidates.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">There is a risk that any drug discovery and development program may not produce revenue.
Moreover, because of uncertainties inherent in drug discovery and development, including those
factors described in Part&nbsp;II, Item&nbsp;1A &#147;Risk Factors&#148; of this Quarterly Report on Form 10-Q, we may
not be able to successfully develop and commercialize any of our product candidates.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Product Candidates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following table identifies the development phase and status for each of our clinical
product candidates:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Clinical</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left"><B>Product Candidate/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Development</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Proposed Indication</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Program</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Phase</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Status</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR><TD align="left" valign="top">&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Ostarine</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>TM</B></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Prevention and
treatment of muscle
wasting in patients
with non-small cell
lung cancer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">SARM
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Phase III
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Plan to initiate two
pivotal Phase III
clinical trials in the
third quarter of 2011 for
the prevention and
treatment of muscle
wasting in patients with
non-small cell lung
cancer.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Capesaris</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>TM</B></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">First line treatment
of advanced prostate
cancer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Selective ER<BR>
alpha agonist
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Phase IIb
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Plan to initiate a Phase
IIb clinical trial in the
second quarter of 2011
for first line treatment
in men with advanced
prostate cancer.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Sales and Marketing</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We market FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> (toremifene citrate) 60 mg tablets, approved for the treatment
of advanced metastatic breast cancer in postmenopausal women in the United States. In order to
commercialize any future products, we must broaden our sales and marketing infrastructure or
collaborate with third parties with sales and marketing experience and personnel.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>General and Administrative Expenses</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Our general and administrative expenses consist primarily of salaries and other related costs
for personnel serving executive, finance, legal, human resources, information technology, investor
relations and marketing functions. General and administrative expenses also include facility
costs, insurance costs, professional fees for legal, accounting, public relations, and marketing
services, and FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> selling and distribution expenses. We expect our general and
administrative expenses for fiscal year 2011 to be relatively consistent with fiscal year 2010.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Critical Accounting Policies and Significant Judgments and Estimates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Our management&#146;s discussion and analysis of our financial condition and results of operations
is based on our condensed financial statements, which have been prepared in accordance with
accounting principles generally accepted in the United States of America for interim financial
statements. The preparation of these financial statements requires us to make estimates and
assumptions that affect the reported amounts of assets and liabilities and the disclosure of
contingent assets and liabilities at the date of the condensed financial statements as well as the
reported revenues and expenses during the reporting periods. On an ongoing basis, we evaluate our
estimates and judgments related to revenue recognition, income taxes, intangible assets, long-term
service contracts and other contingencies. We base our estimates on historical experience and on
various other factors that we believe are reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying value of assets and liabilities that are not
readily apparent from other sources. Actual results may differ from these estimates under
different assumptions or conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">While our significant accounting policies are more fully described in Note 2 to our financial
statements appearing in our Annual Report on Form 10-K for the year ended December&nbsp;31, 2010 filed
with the SEC, we believe that the following accounting policies are most critical to aid you in
fully understanding and evaluating our reported financial results.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Revenue Recognition</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Our revenues consist of product sales of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> and revenues derived from our
collaboration and license agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Collaboration revenue consists of non-refundable upfront payments, license fees,
reimbursements for research and development activities, and milestone payments associated with our
former collaboration and license agreements and was based on the performance requirements of the
specific agreements. We analyzed our agreements with multiple element arrangements to determine
whether the deliverables under the agreement, including license and performance obligations such as
joint steering committee participation and research and development activities, could have been
separated or whether all of the deliverables must have been accounted for as a single unit of
accounting. Cost reimbursements for research activities were recognized as collaboration revenue
if amounts were determinable and collection of the related receivable was reasonably assured.
Revenues from milestone payments for which we had no continuing performance obligations were
recognized upon achievement of the performance milestone, as defined in the related agreement,
provided the milestone was substantive and a culmination of the earnings process had occurred.
Performance obligations typically consisted of significant milestones in the development life cycle
of the related product candidates and technology, such as initiation of clinical trials,
achievement of specified clinical trial endpoints, filing for approval with regulatory agencies and
approvals by regulatory agencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The factors that drive the actual development period of a pharmaceutical product are
inherently uncertain and include determining the timing and expected costs to complete the project,
projecting regulatory approvals and anticipating potential delays. We used all of these factors in
initially estimating the economic useful lives of our performance obligations, and we also
continually monitored these factors for indications of appropriate revisions. We estimated the
performance obligation period to be ten years for the development of toremifene under our former
collaboration agreement with Ipsen. However, due to the termination of our license and
collaboration with Ipsen in March&nbsp;2011, we recognized as collaboration revenue all of the remaining
$8.1&nbsp;million unamortized revenue that was deferred as of December&nbsp;31, 2010 in the first quarter of
2011. Additionally, we recognized as collaboration revenue in the first quarter of 2010 all of the
remaining $49.9&nbsp;million of unamortized revenue that was deferred as of December&nbsp;31, 2009, as well
as the final payment of $5.0&nbsp;million for cost reimbursement for research and development activities
that we received from Merck&nbsp;&#038;&nbsp;Co., Inc., or Merck, in December&nbsp;2010 due to the termination of our license and
collaboration agreement with Merck.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We recognize revenue from product sales of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> less deductions for estimated
sales discounts and sales returns. We recognize revenue from product sales when persuasive
evidence of an arrangement exists, title passes, the price is fixed or determinable, and
collectability is reasonably assured. We account for rebates to certain governmental agencies as a
reduction of product sales. We allow customers to return product within a specified time period
prior to and subsequent to the product&#146;s labeled expiration date. As a result, we estimate an
accrual for product returns, which is recorded as a reduction of product sales. We consider
historical product return trend information that we continue to update each period. We estimate
the number of months of product on hand and the amount of product which is expected to exceed its
expiration date and be returned by the customer by receiving information from our three largest
wholesale customers about the levels of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> inventory held by these customers.
These three largest wholesale customers accounted for 94% of our product sales of
FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> for the three months ended March&nbsp;31, 2011. Based on this information and
other factors, we estimate an accrual for product returns. At March&nbsp;31, 2011 and December&nbsp;31,
2010, our accrual for product returns was $869,000 and $802,000, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Research and Development Expenses</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Research and development expenses include, but are not limited to, our expenses for personnel,
supplies, and facilities associated with research activities, screening and identification of
product candidates, formulation and synthesis activities, manufacturing, preclinical studies,
toxicology studies, clinical trials, regulatory affairs activities, quality assurance activities
and license fees. We expense these costs in the period in which they are incurred. We estimate
our liabilities for research and development expenses in order to match the recognition of expenses
to the period in which the actual services are received. As such, accrued liabilities related to
third party research and development activities are recognized based upon our estimate of services
received and degree of completion of the
services in accordance with the specific third party contract.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Research and development expenses for the three months ended March&nbsp;31, 2011 included an
impairment charge of $1.6&nbsp;million related to the unamortized portion of capitalized license fees
paid to Orion Corporation related to our toremifene 80 mg program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Share-Based Compensation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We have stock option and equity incentive plans that provide for the purchase of our common
stock by certain of our employees and non-employee directors. We recognize compensation expense
for our share-based payments based on the fair value of the awards on the grant date and recognize
the expense over the period during which an employee or non-employee director is required to
provide service in exchange for the award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The determination of the fair value of share-based payment awards on the date of grant include
the expected life of the award, the expected stock price volatility over the expected life of the
awards, expected dividend yield, and risk-free interest rate. We estimate the expected life of
options by calculating the average of the vesting term and contractual term of the options. We
estimate the expected stock price volatility based on the historical volatility of our common
stock. The risk-free interest rate is determined using U.S. Treasury rates where the term is
consistent with the expected life of the stock options. Expected dividend yield is not considered
as we have not made any dividend payments and have no plans of doing so in the foreseeable future.
The amount of share-based compensation expense recognized is reduced ratably over the vesting
period by an estimate of the percentage of options granted that are expected to be forfeited or
canceled before becoming fully vested. This estimate is adjusted periodically based on the extent
to which actual forfeitures differ, or are expected to differ, from the previous estimate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Total share-based compensation expense for the three months ended March&nbsp;31, 2011 was $1.3
million, of which $509,000 and $741,000 were recorded in the condensed statement of operations as
research and development expenses and general and administrative expenses, respectively. Total
share-based compensation expense for the three months ended March&nbsp;31, 2010 was $1.7&nbsp;million, of
which $846,000 and $868,000 were recorded in the condensed statement of operations as research and
development expenses and general and administrative expenses, respectively. Included in
share-based compensation expense for the three months ended March&nbsp;31, 2011 and 2010 was share-based
compensation expense related to deferred compensation arrangements for our non-employee directors
of $51,000 and $50,000, respectively. At March&nbsp;31, 2011, the total compensation cost related to
non-vested awards not yet recognized was approximately $11.2&nbsp;million with a weighted average
expense recognition period of 3.4&nbsp;years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Results of Operations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Three Months Ended March&nbsp;31, 2011 and 2010</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Revenues. </I></B>Revenues for the three months ended March&nbsp;31, 2011 were $9.3&nbsp;million, as compared to
$56.6&nbsp;million for the same period of 2010. Revenues included net sales of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>
marketed for the treatment of advanced metastatic breast cancer in postmenopausal women and
collaboration income from Ipsen and Merck. During the three months ended March&nbsp;31, 2011 and 2010,
FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> net product sales were $1.2&nbsp;million and $799,000, respectively, while cost of
products sales were $205,000 and $151,000, respectively. FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> net product sales
for the three months ended March&nbsp;31, 2011 increased from the same period in the prior year due
primarily to an increase in the sales price of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>. Collaboration income was $8.1
million for the three months ended March&nbsp;31, 2011, and $55.8&nbsp;million for the three months ended
March&nbsp;31, 2010. As a result of the termination of our license and collaboration agreement with
Ipsen in March&nbsp;2011, we recognized as collaboration revenue all of the remaining $8.1&nbsp;million of
unamortized revenue that was deferred as of December&nbsp;31, 2010. Collaboration revenue for the three
months ended March&nbsp;31, 2010 was $55.8&nbsp;million due to the termination of the license and
collaboration agreement with Merck and the subsequent recognition of all of the remaining $49.9
million of unamortized revenue that was deferred as of December&nbsp;31, 2009, as well as the final
payment of $5.0&nbsp;million of research and development activities cost reimbursement. Collaboration
revenue for the three months ended March&nbsp;31, 2010 also included approximately $922,000 from the
amortization of deferred revenue from Ipsen.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">




<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Research and Development Expenses. </I></B>Research and development expenses decreased 5% to $7.3&nbsp;million
for the three months ended March&nbsp;31, 2011 from $7.7&nbsp;million for the three months ended March&nbsp;31,
2010. Research and development expenses for the three months ended March&nbsp;31, 2011 included an
impairment charge of $1.6&nbsp;million related to our toremifene 80 mg intangible asset. This amount is
included in &#147;Other research and development&#148; in the table
below. The decrease in &#147;Other
research and development&#148; during the three months ended March&nbsp;31, 2011 compared to the three months
ended March&nbsp;31, 2010 was due to the completion of the toremifene 20 mg Phase III clinical trial in
early 2010. The following table identifies the research and development expenses for each of our
clinical product candidates, as well as research and development expenses pertaining to our other
research and development efforts, for both of the periods presented. Research and development
expenses for past periods may not be indicative of future periods.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="top">
    <TD width="44%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="top">
    <TD nowrap align="left"><B>Product Candidate/</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Increase/</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="top">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Proposed Indication</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Program</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Decrease</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2011</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="top" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Ostarine</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>TM</B></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prevention and treatment of muscle wasting in
patients</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>SARM</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">1,016</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">960</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">56</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">with non-small cell lung cancer</DIV></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="top" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Capesaris</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>TM</B></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">First line treatment of advanced prostate cancer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Selective ER alpha agonist</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,314</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,619</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">695</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="top" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Other research and development</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3,973</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5,071</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(1,098</TD>
    <TD nowrap valign="top">)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total research and
development expenses</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">7,303</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">7,650</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">$</TD>
    <TD align="right" valign="top">(347</TD>
    <TD nowrap valign="top">)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" valign="top" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" valign="top" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" valign="top" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>General and Administrative Expenses</I></B><B>. </B>General and administrative expenses increased during the
three months ended March&nbsp;31, 2011 to $4.7&nbsp;million from $4.5&nbsp;million for the three months ended
March&nbsp;31, 2010. This increase was primarily due to increased marketing expenses related to
promotional efforts for FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Liquidity and Capital Resources</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">At March&nbsp;31, 2011, we had cash, cash equivalents and short-term investments of $49.4&nbsp;million,
compared to $58.6&nbsp;million at December&nbsp;31, 2010. Net cash used in operating activities was $9.2
million and $10.2&nbsp;million for the three months ended March&nbsp;31, 2011 and 2010, respectively, and
resulted primarily from funding our operations for the periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Net cash used in investing activities was $6.1&nbsp;million and $367,000 for the three months ended
March&nbsp;31, 2011 and 2010, respectively. Net cash used in investing activities for the three months
ended March&nbsp;31, 2011 was primarily for the purchase of short-term investments of approximately $6.1
million. Net cash used in investing activities for the three months ended March&nbsp;31, 2010 was
primarily for the purchase of short-term investments of approximately $4.0&nbsp;million and the purchase
of information technology equipment and research and development equipment of approximately
$83,000. This was reduced by the maturities of short-term investments of approximately $3.7
million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Net cash used in financing activities was $21,000 and $26,000 for the three months ended March
31, 2011 and 2010, respectively, and was related to payments on capital lease and financed
equipment obligations.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We estimate that our current cash, cash equivalents, and short-term investments, together with
interest income and product revenue from the sale of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>, will be sufficient to
meet our projected operating requirements for at least the next twelve months. We have based this
estimate on our current business plan and assumptions that may prove to be wrong. We could utilize
our available capital resources sooner than we currently expect, and we could need additional
funding sooner than currently anticipated. We believe that our current cash resources, together
with interest income and product revenue from the sale of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>, will be sufficient
to enable us to initiate in 2011 our planned pivotal Phase III clinical trials of
Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> for the prevention and treatment of muscle wasting in patients with non-small
cell lung cancer and to initiate and complete our planned Phase IIb clinical trial to evaluate
Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> for first line treatment of advanced prostate cancer. To complete the two
Phase III clinical trials we expect to initiate in 2011 for Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP>, we will need to
obtain additional funding. Further, to conduct any additional clinical trials for our product
candidates, we will need to obtain additional funding through partnerships and/or collaborations or
the sale of our securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Our estimate of the period of time through which our financial resources will be adequate to
support our projected operating requirements is a forward-looking statement and involves risks and
uncertainties, and actual results could vary as a result of a number of factors, including the
factors discussed under Part&nbsp;II, Item&nbsp;1A &#147;Risk Factors&#148; section of this Quarterly Report on Form
10-Q. Because of the numerous risks and uncertainties associated with the development and
commercialization of our product candidates and other research and development activities,
including risks and uncertainties that could impact the rate of progress of our development and
commercialization activities, we are unable to estimate with certainty the amounts of increased
capital outlays and operating expenditures associated with our anticipated future clinical trials,
other research and development activities, and potential commercialization activities. Our future
funding requirements will depend on many factors, including:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the scope, rate of progress and cost of our clinical trials and other research and development activities,
including our currently-planned clinical trials of Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> and Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP>;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the terms and timing of any potential future collaborative, licensing and other arrangements that we may
establish;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>future clinical trial results;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the cost and timing of regulatory filings and/or approvals to commercialize our product candidates and any
related restrictions, limitations, and/or warnings in the label of an approved product candidate;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the amount and timing of any licensing fees, milestone payments and royalty payments from potential future
collaborators, if any;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the cost and timing of establishing medical education, sales, marketing and distribution capabilities;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the cost of establishing clinical and commercial supplies of our product candidates and any products that
we and/or any potential future collaborators may develop;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the effect of competing technological and market developments;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual property
rights, and the cost of defending any other litigation claims; and</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the extent to which we acquire or invest in businesses, products and technologies, although we currently
have no commitments or agreements relating to any of these types of transactions.</TD>
</TR>



</TABLE>
</DIV><P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We do not currently have any commitments for future external funding and until we can generate
a sufficient amount of product revenue, which we may never do, we expect to finance future cash
needs through public or private equity offerings, debt financings or collaboration and licensing
arrangements, or a combination of the above,
as well as through interest income earned on the investment of our cash balances and
short-term investments and revenues from the sale of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>. In December&nbsp;2009, we
announced a reduction of approximately 26% of our workforce in order to reduce our operating
expenses in connection with the receipt of the Complete Response Letter regarding our NDA for
toremifene 80 mg. If we are unable to raise additional funds when we need them, we may need to
further reduce our expenditures, perhaps significantly, to preserve our cash. Cost-cutting
measures that we may take in the future may not be sufficient to enable us to meet our cash
requirements, and they may negatively affect our business and growth prospects. To the
extent we raise additional funds by issuing equity securities, our stockholders may experience
dilution, and debt financing, if available, may involve restrictive covenants. Any debt financing
or additional equity that we raise may contain terms that are not favorable to us or our
stockholders. To the extent we raise additional funds through potential future collaboration and
licensing arrangements, it may be necessary to relinquish rights to some of our technologies or
product candidates, or grant licenses on terms that are not favorable to us. Our ability to raise
additional funds and the terms upon which we are able to raise such funds may be adversely impacted
by the uncertainty regarding our uncertain financial condition, the outcomes of our
currently-planned clinical trials of Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> and Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> and/or
current economic conditions, including the effects of disruptions to and volatility in the credit
and financial markets in the United States and worldwide. As a result of these and other factors,
we cannot be certain that additional funding will be available on acceptable terms, or at all. If
adequate funds are not available when we need them, we may be required to delay, reduce the scope
of or eliminate one or more of our research or development programs, including our SARM and
selective ER alpha agonist programs, or conduct additional workforce or other expense reductions,
any of which could have a material adverse effect on our business.
</DIV>
<DIV align="left">
<A name="C16570108"></A>
</DIV>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>ITEM 3.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">During the three months ended March&nbsp;31, 2011, there were no material changes to our market
risk disclosures as set forth in Part&nbsp;II, Item&nbsp;7A of our Annual Report on Form 10-K for the year
ended December&nbsp;31, 2010.
</DIV>
<DIV align="left">
<A name="C16570109"></A>
</DIV>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>ITEM 4.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>CONTROLS AND PROCEDURES</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We maintain disclosure controls and procedures (as defined in Rules&nbsp;13a-15(e) and 15d-15(e) of
the Securities and Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)) that are designed to
ensure that information required to be disclosed in the reports that we file or submit under the
Exchange Act is recorded, processed, summarized, and reported within the time periods specified in
the SEC&#146;s rules and forms and that such information is accumulated and communicated to our
management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to
allow for timely decisions regarding required disclosures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We have carried out an evaluation, under the supervision and with the participation of our
management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness
of the design and operation of our disclosure controls and procedures (as defined in Rules
13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report.
Based on the evaluation of these disclosure controls and procedures, our Chief Executive Officer
and Chief Financial Officer have concluded that our disclosure controls and procedures were
effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">There were no changes in our internal control over financial reporting during the first
quarter of 2011 that have materially affected, or are reasonably likely to materially affect, our
internal control over financial reporting.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="left">
<A name="C16570110"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>PART II: OTHER INFORMATION</B>
</DIV>

<DIV align="left">
<A name="C16570111"></A>
</DIV>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>ITEM 1A.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>RISK FACTORS</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We have identified the following additional risks and uncertainties that may have a material
adverse effect on our business, financial condition or results of operations. Investors should
carefully consider the risks described below before making an investment decision. Our business
faces significant risks, and the risks described below may not be the only risks we face.
Additional risks not presently known to us or that we currently believe are immaterial may also
significantly impair our business operations. If any of these risks occur, our business, results
of operations or financial condition could suffer, the market price of our common stock could
decline and you could lose all or part of your investment in our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We have marked with an asterisk (*) those risks described below that reflect substantive
changes from the risks described under Part&nbsp;I, Item&nbsp;1A &#147;Risk Factors&#148; included in our Annual Report
on Form 10-K filed with the Securities and Exchange Commission on March&nbsp;8, 2011. In addition, the
risks described under, and the captions entitled, &#147;Off-label sale or use of third-party toremifene
products could decrease sales of any toremifene product candidates that we continue to develop and
that are approved for commercial sale, and could lead to pricing pressure if such products become
available at competitive prices and in dosages that are appropriate or the indications for which we
may continue to develop toremifene&#148; and &#147;Our license agreement with Orion excludes the use of
toremifene in humans to treat breast cancer outside of the United States and may limit our ability
to market toremifene for human uses outside the United States&#148; included under Part&nbsp;1, Item&nbsp;1A &#147;Risk
Factors&#148; in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on
March&nbsp;8, 2011 have been removed.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Risks Related to Our Financial Condition and Need for Additional Financing</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>We have incurred losses since inception, and we anticipate that we will incur continued losses
for the foreseeable future.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As of March&nbsp;31, 2011, we had an accumulated deficit of $355.5&nbsp;million. Due to the recognition
of the remaining $49.9&nbsp;million of unamortized revenue due to the termination of an exclusive
license and collaboration agreement for our SARM program, we reported net income of $15.3&nbsp;million
for the year ended December&nbsp;31, 2010. However, we have incurred losses in each prior year since
our inception in 1997, including net losses of $46.3&nbsp;million and $51.8&nbsp;million in 2009 and 2008,
respectively. Our net loss for the three months ended March&nbsp;31, 2011 was $2.6&nbsp;million. We expect
to incur significant operating losses in 2011 and for the foreseeable future as we continue our
clinical development and research and development activities. These losses, among other things,
have had and will continue to have an adverse effect on our stockholders&#146; equity and working
capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In October&nbsp;2009, we received a Complete Response Letter from the U.S. Food and Drug
Administration, or FDA, regarding our New Drug Application, or NDA, for toremifene 80 mg to reduce
fractures in men with prostate cancer on ADT notifying us that the FDA would not approve our NDA as
a result of certain clinical deficiencies identified in the Complete Response Letter. Following
the termination of our collaboration agreement with Ipsen Biopharm Limited, or Ipsen, in March&nbsp;2011
and based on the FDA&#146;s decision to require that a second pivotal Phase III clinical trial be
conducted prior to the FDA considering toremifene 80 mg for marketing approval, we have decided to
discontinue our toremifene 80 mg development program. As we have previously decided to discontinue
our toremifene 20 mg development program, we do not anticipate that we will receive any return on
our investment in either of our toremifene 80 mg or toremifene 20 mg product candidates. Our
current product candidates are in various stages of clinical development, and significant
additional clinical development and financial resources will be required to obtain necessary
regulatory approvals for them, including Ostarine&#153; (GTx-024) and Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> (GTx-758)
and to develop these product candidates into commercially viable products. Accordingly, we do not
expect to obtain FDA or any other regulatory approvals to market any of our product candidates in
the near future, and it is possible these products will never gain regulatory approval.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Because of the numerous risks and uncertainties associated with developing and commercializing
small molecule drugs, we are unable to predict the extent of any future losses or when we will
become profitable, if at all. We have financed our operations and internal growth primarily through
public offerings and private placement of our common stock, as well as payments from our former
collaborators. Currently, we have no ongoing collaborations for the development and
commercialization of our product candidates. FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> is currently our only commercial
product and, until such time that we receive regulatory approval to market any of our product
candidates, if ever, we expect that FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top"><SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> </SUP>will account for all of our product
revenue. For the three months ended March&nbsp;31, 2011, we recognized $1.2&nbsp;million in net revenues
from the sale of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>.<SUP style="FONT-size: 85%; vertical-align: text-top"> </SUP> If we and/or any potential future collaborators
are unable to develop and commercialize any of our product candidates, if development is further
delayed or eliminated, or if sales revenue from any product candidate that receives marketing
approval is insufficient, we may never become profitable and we will not be successful.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>We will need to raise substantial additional funding and may be unable to raise capital when
needed, which would force us to further delay, reduce or eliminate our product development programs
or commercialization efforts.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We will need to raise substantial additional capital to:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fund our operations and conduct clinical trials;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>continue our research and development; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>
<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>commercialize our product candidates, if any such product candidates
receive regulatory approval for commercial sale.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We estimate that our current cash, cash equivalents, and short-term investments, together with
interest income and product revenue from the sale of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>, will be sufficient to
meet our projected operating requirements for at least the next twelve months. We have based this
estimate on our current business plan and assumptions that may prove to be wrong. We could utilize
our available capital resources sooner than we currently expect, and we could need additional
funding sooner than currently anticipated. We believe that our current cash resources, together
with interest income and product revenue from the sale of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>, will be sufficient
to enable us to initiate in 2011 our planned pivotal Phase III clinical trials of
Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> for the prevention and treatment of muscle wasting in patients with non-small
cell lung cancer and to initiate and complete our planned Phase IIb clinical trial to evaluate
Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> for first line treatment of advanced prostate cancer. To complete the two
Phase III clinical trials we expect to initiate in 2011 for Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP>, we will need to
obtain additional funding. Further, to conduct any additional clinical trials for our product
candidates, we will need to obtain substantial additional funding through partnerships and/or
collaborations or the sale of our securities. Our future funding requirements will depend on many
factors, including:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the scope, rate of progress and cost of our clinical trials and other research and development
activities, including our currently-planned clinical trials of Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> and Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP>;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the terms and timing of any potential future collaborative, licensing and other arrangements that we may
establish;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>future clinical trial results;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the cost and timing of regulatory filings and/or approvals to commercialize our product candidates and
any related restrictions, limitations, and/or warnings in the label of an approved product candidate;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the amount and timing of any licensing fees, milestone payments and royalty payments from potential
future collaborators, if any;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the cost and timing of establishing medical education, sales, marketing and distribution capabilities;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the cost of establishing clinical and commercial supplies of our product candidates and any products
that we and/or any potential future collaborators may develop;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the effect of competing technological and market developments;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual
property rights, and the cost of defending any other litigation claims; and</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the extent to which we acquire or invest in businesses, products and technologies, although we currently
have no commitments or agreements relating to any of these types of transactions.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We do not currently have any commitments for future external funding and until we can generate
a sufficient amount of product revenue, which we may never do, we expect to finance future cash
needs through public or private equity offerings, debt financings or collaboration and licensing
arrangements, or a combination of the above, as well as through interest income earned on the
investment of our cash balances and short-term investments and revenues from the sale of
FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>. In December&nbsp;2009, we announced a reduction of approximately 26% of our
workforce in order to reduce our operating expenses in connection with the receipt of the Complete
Response Letter regarding our NDA for toremifene 80 mg. If we are unable to raise additional funds
when we need them, we may need to further reduce our expenditures, perhaps significantly, to
preserve our cash. Cost-cutting measures that we may take in the future may not be sufficient to
enable us to meet our cash requirements, and they may negatively affect our business and growth
prospects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">To the extent we raise additional funds by issuing equity securities, our stockholders may
experience dilution, and debt financing, if available, may involve restrictive covenants. Any debt
financing or additional equity that we raise may contain terms that are not favorable to us or our
stockholders. To the extent we raise additional funds through potential future collaboration and
licensing arrangements, it may be necessary to relinquish rights to some of our technologies or
product candidates, or grant licenses on terms that are not favorable to us. Our ability to raise
additional funds and the terms upon which we are able to raise such funds may be adversely impacted
by the uncertainty regarding our uncertain financial condition, the outcomes of our
currently-planned clinical trials of Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> and Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> and/or
current economic conditions, including the effects of disruptions to and volatility in the credit
and financial markets in the United States and worldwide. As a result of these and other factors,
we cannot be certain that additional funding will be available on acceptable terms, or at all. If
adequate funds are not available when we need them, we may be required to delay, reduce the scope
of or eliminate one or more of our research or development programs, including our SARM and
selective ER alpha agonist programs, or conduct additional workforce or other expense reductions,
any of which could have a material adverse effect on our business.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Risks Related to Development of Product Candidates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>We and any potential future collaborators will not be able to commercialize our product
candidates if our preclinical studies do not produce successful results or if our clinical trials
do not adequately demonstrate safety and efficacy in humans.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Significant additional research and development and financial resources will be required to
obtain necessary regulatory approvals for our product candidates and to develop them into
commercially viable products. Preclinical and clinical testing is expensive, can take many years
to complete and has an uncertain outcome. Success in preclinical testing and early clinical trials
does not ensure that later clinical trials will be successful, and interim results of a clinical
trial do not necessarily predict final results. Typically, the failure rate for development
candidates is high. If a product candidate fails at any stage of development, we will not have the
anticipated revenues from that product candidate to fund our operations, and we will not receive
any return on our investment in that product candidate. For example, we announced in May&nbsp;2010 that
toremifene 20 mg failed to meet its primary efficacy endpoint in our Phase III clinical trial of
toremifene 20 mg for the prevention of prostate cancer in high risk men with high grade prostatic
intraepithelial neoplasia, after we had incurred significant development costs. Even if the
results of a clinical trial are positive, the efficacy and/or safety results from the trial may be
insufficient to support the submission of a NDA to the FDA, or if submitted, the filing or approval
of the NDA by the FDA. For example, we received a Complete Response Letter in October&nbsp;2009 from the
FDA regarding our NDA for toremifene 80 mg to reduce fractures in men with prostate cancer on ADT,
notifying us that the FDA would not approve the NDA. We have since determined to discontinue our
toremifene development program.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Significant delays in clinical testing could materially impact our product development costs.
We do not know whether planned clinical trials will begin on time, will need to be restructured or
will be completed on schedule, if at all. We or any potential future collaborators may experience
numerous unforeseen events during, or as a result of, preclinical testing and the clinical trial
process that could delay or prevent our or our potential future collaborators&#146; ability to
commercialize our product candidates, including:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>regulators or institutional review boards may not authorize us or any potential future
collaborators to commence a clinical trial or conduct a clinical trial at a prospective trial site;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>preclinical or clinical trials may produce negative or inconclusive results, which may require us
or any potential future collaborators to conduct additional preclinical or clinical testing or to abandon
projects that we expect to be promising;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>even if preclinical or clinical trial results are positive, the FDA or foreign regulatory
authorities could nonetheless require us to conduct unanticipated additional clinical trials;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>registration or enrollment in clinical trials may be slower than we currently anticipate,
resulting in significant delays or study termination;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we or any potential future collaborators may suspend or terminate clinical trials if the
participating patients are being exposed to unacceptable health risks;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>regulators or institutional review boards may suspend or terminate clinical research for various
reasons, including noncompliance with regulatory requirements; and</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our product candidates may not have the desired effects or may include undesirable side effects.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If any of these events were to occur and, as a result, we or any potential future
collaborators have significant delays in or termination of clinical trials, our costs could
increase and our ability to generate revenue could be impaired, which would materially and
adversely impact our business, financial condition and growth prospects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>If we or any potential future collaborators observe serious or other adverse events during the
time our product candidates are in development or after our products are approved and on the
market, we or any potential future collaborators may be required to perform lengthy additional
clinical trials, may be denied regulatory approval of such products, may be forced to change the
labeling of such products or may be required to withdraw any such products from the market, any of
which would hinder or preclude our ability to generate revenues.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In our Phase II clinical trials for Ostarine&#153; for the treatment of muscle wasting in patients
with cancer and healthy older males and postmenopausal females, we observed mild elevations of
hepatic enzymes in a few patients in both the placebo and Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> treated groups.
Reductions in high-density lipoproteins have been observed in subjects treated with
Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP>. In our preclinical studies for Ostarine&#153; in which high exposures to drug
were achieved, we observed expected effects on the reproductive and other target organs in animals
consistent with stimulation and inhibition of the androgen receptor which is located in these
organs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Capesaris&#153; is a new chemical entity that is selective for estrogen receptor alpha. Although
Capesaris&#153; has been well tolerated in clinical trials to date, adverse effects may occur in future
clinical studies. Increase in the incidence of thromboembolic events, a known risk factor
associated with approved non-selective estrogenic therapies, and increases in hepatic enzymes, a
known risk factor associated with orally administered estrogenic therapies, will be monitored and
may be observed in future clinical studies. In our preclinical animal studies with Capesaris&#153; in
which high exposures to drug were achieved, we observed expected effects on reproductive and other
target organs in animals consistent with stimulation or inhibition of the estrogen receptors which
are located in these organs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If the incidence of serious or other adverse events related to our product candidates
increases in number or severity, if a regulatory authority believes that these or other events
constitute an adverse effect caused by the drug, or if other effects are identified during clinical
trials that we or any potential future collaborators may conduct in the future or after any of our
product candidates are approved and marketed:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we or any potential future collaborators may be required to conduct
additional preclinical or clinical trials, make changes in the labeling of any such
approved products, reformulate any such products, or implement changes to or obtain
new approvals of our contractors&#146; manufacturing facilities;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>regulatory authorities may be unwilling to approve our product candidates or
may withdraw approval of our products;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may experience a significant drop in the sales of the affected products;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our reputation in the marketplace may suffer; and</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may become the target of lawsuits, including class action suits.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Any of these events could prevent approval or harm sales of the affected product candidates or
products, or could substantially increase the costs and expenses of commercializing and marketing
any such products.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Risks Related to Our Dependence on Third Parties</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>If we do not establish collaborations for our product candidates or otherwise raise
substantial additional capital, we will likely need to alter our development and any
commercialization plans.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Our strategy includes selectively partnering or collaborating with leading pharmaceutical and
biotechnology companies to assist us in furthering development and potential commercialization of
our product candidates. We face significant competition in seeking appropriate collaborators, and
collaborations are complex and time consuming to negotiate and document. We may not be successful
in entering into new collaborations with third parties on acceptable terms, or at all, including as
a result of any collaboration discussions we pursue for Ostarine&#153; and Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP>. In
addition, we are unable to predict when, if ever, we will enter into any additional collaborative
arrangements because of the numerous risks and uncertainties associated with establishing such
arrangements. If we are unable to negotiate new collaborations, we may have to curtail the
development of a particular product candidate, reduce, delay, or terminate its development or one
or more of our other development programs, delay its potential commercialization or reduce the
scope of our sales or marketing activities or increase our expenditures and undertake development
or commercialization activities at our own expense. If we elect to increase our expenditures to
fund development or commercialization activities on our own, we will need to raise substantial
additional capital, which may not be available to us on acceptable terms, or at all. If we do not
have sufficient funds, we will not be able to bring our product candidates to market and generate
product revenues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>Any collaborative arrangements that we establish in the future may not be successful or we may
otherwise not realize the anticipated benefits from these collaborations. In addition, any future
collaboration arrangements may place the development and commercialization of our product
candidates outside our control, may require us to relinquish important rights or may otherwise be
on terms unfavorable to us.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We have in the past established and intend to continue to establish collaborations with third
parties to develop and commercialize some of our current and future product candidates, and these
collaborations may not be successful or we may otherwise not realize the anticipated benefits from
these collaborations. For example, in March&nbsp;2011, we and Ipsen mutually agreed to terminate our
collaboration and, as a result, we will not receive any additional milestone payments from Ipsen on
account of our collaboration with Ipsen. As of the date of this report, we have no ongoing
collaborations for the development and commercialization of our product candidates. In the future,
we may not be able to locate third-party collaborators to develop and market our product
candidates, and we may lack the capital and resources necessary to develop our product candidates
alone.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Dependence on collaborative arrangements subjects us to a number of risks, including:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may not be able to control the amount and timing of resources that our potential
future collaborators may devote to our product candidates;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potential future collaborations may experience financial difficulties or changes in
business focus;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may be required to relinquish important rights such as marketing and distribution
rights;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>should a collaborator fail to develop or commercialize one of our compounds or
product candidates, we may not receive any future milestone payments and will not
receive any royalties for the compound or product candidate;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>business combinations or significant changes in a collaborator&#146;s business strategy
may also adversely affect a collaborator&#146;s willingness or ability to complete its
obligations under any arrangement;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>under certain circumstances, a collaborator could move forward with a competing
product candidate developed either independently or in collaboration with others,
including our competitors; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>collaborative arrangements are often terminated or allowed to expire, which could
delay the development and may increase the cost of developing our product candidates.</TD>
</TR>

</TABLE>
</DIV><P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>If third parties do not manufacture our product candidates in sufficient quantities, in the
required timeframe, and at an acceptable cost, clinical development and commercialization of our
product candidates would be delayed.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We do not currently own or operate manufacturing facilities, and we rely, and expect to
continue to rely, on third parties for the production of clinical and commercial quantities of our
product candidates. Our current and anticipated future dependence upon others for the manufacture
of our product candidates may adversely affect our future profit margins, if any, and our ability
to develop product candidates and commercialize any product candidates on a timely and competitive
basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We have agreed to purchase from Orion our worldwide requirements of toremifene in a finished
tablet form at specified prices under a license and supply agreement. Orion may terminate its
supply obligations at its election at any time as a result of our failure to obtain regulatory
approval of one of our toremifene product candidates in the United States prior to December&nbsp;31,
2009. If Orion elects to terminate its obligation to manufacture and supply us with toremifene 60
mg tablets, any arrangements we make for an alternative supply would have to be made with a
qualified alternative supplier with appropriate FDA approval in order for us to obtain our supply
requirements for toremifene. In addition, although Orion&#146;s composition of matter patents have
expired, and as such, we would not be prevented from manufacturing toremifene 60 mg tablets, there
is no obligation on the part of Orion to transfer its manufacturing technology to us or to assist
us in developing manufacturing capabilities to meet our supply needs. If our supply rights for 60
mg tablets are terminated by Orion for any reason, a disruption in the supply of toremifene 60 mg
tablets could impair our ability to continue to commercialize FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We rely on third party vendors for the manufacture of Ostarine&#153; drug substance. If our supply
of Ostarine&#153; becomes unusable or if the contract manufacturers that we are currently utilizing to
meet our supply needs for Ostarine&#153; or our other future SARM product candidates prove incapable or
unwilling to continue to meet our supply needs, we could experience a delay in conducting any
additional clinical trials of Ostarine&#153; or other future SARM product candidates. In addition, we
rely on third party contractors for the manufacture of Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> drug substance. We
may not be able to maintain or renew our existing or any other third-party manufacturing
arrangements on acceptable terms, if at all. If we are unable to continue our relationship with
Orion for toremifene, or to do so at an acceptable cost, or other suppliers fail to meet our
requirements for Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP>, or Ostarine&#153; or our other future SARM product candidates
for any reason, we would be required to obtain alternate suppliers. Any inability to obtain
alternate suppliers, including an inability to obtain approval from the FDA of an alternate
supplier, would delay or prevent the clinical development and commercialization of these product
candidates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>Use of third-party manufacturers may increase the risk that we will not have adequate supplies
of our product candidates.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Reliance on third-party manufacturers entails risks, to which we would not be subject if we
manufactured product candidates or products ourselves, including:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reliance on the third party for regulatory compliance and quality assurance;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the possible breach of the manufacturing agreement by the third party because of factors
beyond our control;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the possible termination or non-renewal of the agreement by the third party, based on its
own business priorities, at a time that is costly or inconvenient for us;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>drug product supplies not meeting the requisite requirements for clinical trial use; and</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the possible exercise by Orion of its right to terminate its obligation to supply us with
toremifene 60 mg tablets, which it may do at its election at any time.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If we are not able to obtain adequate supplies of our product candidates, it will be more
difficult for us to develop our product candidates and compete effectively. Our product candidates
and any products that we and/or our potential future collaborators may develop may compete with
other product candidates and products for access to manufacturing facilities.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Our present or future manufacturing partners may not be able to comply with FDA-mandated
current Good Manufacturing Practice regulations, other FDA regulatory requirements or similar
regulatory requirements outside the United States. Failure of our third-party manufacturers or us
to comply with applicable regulations could result in sanctions being imposed on us, including
fines, injunctions, civil penalties, failure of regulatory authorities to grant marketing approval
of our product candidates, delays, suspension or withdrawal of approvals, license revocation,
seizures or recalls of product candidates or products, operating restrictions and criminal
prosecutions, any of which could significantly and adversely affect supplies of our product
candidates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>If third parties on whom we rely do not perform as contractually required or expected, we may
not be able to obtain regulatory approval for or successfully commercialize our product candidates.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We do not have the ability to independently conduct clinical trials for our product
candidates, and we must rely on third parties, such as contract research organizations, medical
institutions, clinical investigators and contract laboratories to conduct our clinical trials. In
addition, we rely on third parties to assist with our preclinical development of product
candidates. If these third parties do not successfully carry out their contractual duties or
regulatory obligations or meet expected deadlines, if the third parties need to be replaced, or if
the quality or accuracy of the data they obtain is compromised due to the failure to adhere to our
clinical protocols or regulatory requirements or for other reasons, our preclinical development
activities or clinical trials may be extended, delayed, suspended or terminated, and we may not be
able to obtain regulatory approval for or successfully commercialize our product candidates.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Risks Related to Our Intellectual Property</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>If we lose our license from the University of Tennessee Research Foundation, or UTRF, we may
be unable to continue a substantial part of our business.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We have licensed intellectual property rights and technology from UTRF used in a substantial
part of our business. This license agreement may be terminated by UTRF if we are in breach of our
obligations under, or fail to perform any terms of, the agreement and fail to cure that breach. If
this agreement is terminated, then we may lose our rights to utilize the technology and
intellectual property covered by that agreement to market, distribute and sell our licensed
products, including Ostarine<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP>, which may prevent us from continuing a substantial part
of our business and may result in a serious adverse effect on our financial condition, results of
operations and any prospects for growth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>If some or all of our, or our licensors&#146;, patents expire or are invalidated or are found to be
unenforceable, or if some or all of our patent applications do not result in issued patents or
result in patents with narrow, overbroad, or unenforceable claims, or claims that are not supported
in regard to written description or enablement by the specification, or if we are prevented from
asserting that the claims of an issued patent cover a product of a third party, we may be subject
to competition from third parties with products in the same class of products as our product
candidates or products with the same active pharmaceutical ingredients as our product candidates.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Our commercial success will depend in part on obtaining and maintaining patent and trade
secret protection for our product candidates, as well as the methods for treating patients in the
product indications using these product candidates. We will be able to protect our product
candidates and the methods for treating patients in the product indications using these product
candidates from unauthorized use by third parties only to the extent that we or our exclusive
licensors own or control such valid and enforceable patents or trade secrets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Our rights to certain patents and patent applications relating to SARM compounds that we have
licensed from UTRF are subject to the terms of UTRF&#146;s inter-institutional agreements with The Ohio
State University, or OSU, and our rights to future related improvements in some instances are
subject to UTRF&#146;s exercise of exclusive options under its agreements with OSU for such
improvements.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Even if our product candidates and the methods for treating patients for prescribed
indications using these product candidates are covered by valid and enforceable patents and have
claims with sufficient scope, disclosure and support in the specification, the patents will provide
protection only for a limited amount of time. Our and our licensors&#146; ability to obtain patents can
be highly uncertain and involve complex and in some cases unsettled legal issues and factual
questions. Furthermore, different countries have different procedures for obtaining patents, and
patents issued in different countries provide different degrees of protection against the use of a
patented invention by others. Therefore, if the issuance to us or our licensors, in a given
country, of a patent covering an invention is not followed by the issuance, in other countries, of
patents covering the same invention, or if any judicial interpretation of the validity,
enforceability, or scope of the claims in, or the written description or enablement in, a patent
issued in one country is not similar to the interpretation given to the corresponding patent issued
in another country, our ability to protect our intellectual property in those countries may be
limited. Changes in either patent laws or in interpretations of patent laws in the United States
and other countries may materially diminish the value of our intellectual property or narrow the
scope of our patent protection.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Even if patents are issued to us or our licensors regarding our product candidates or methods
of using them, those patents can be challenged by our competitors who can argue such patents are
invalid or unenforceable, lack sufficient written description or enablement, or that the claims of
the issued patents should be limited or narrowly construed. Patents also will not protect our
product candidates if competitors devise ways of making or using these product candidates without
legally infringing our patents. The Federal Food, Drug, and Cosmetic Act and FDA regulations and
policies create a regulatory environment that encourages companies to challenge branded drug
patents or to create non-infringing versions of a patented product in order to facilitate the
approval of abbreviated new drug applications for generic substitutes. These same types of
incentives encourage competitors to submit new drug applications that rely on literature and
clinical data not prepared for or by the drug sponsor, providing another less burdensome pathway to
approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We also rely on trade secrets to protect our technology, especially where we do not believe
that patent protection is appropriate or obtainable. However, trade secrets are difficult to
protect. Our employees, consultants, contractors, outside scientific collaborators and other
advisors may unintentionally or willfully disclose our confidential information to competitors, and
confidentiality agreements may not provide an adequate remedy in the event of unauthorized
disclosure of confidential information. Enforcing a claim that a third party illegally obtained and
is using our trade secrets is expensive and time-consuming, and the outcome is unpredictable.
Moreover, our competitors may independently develop equivalent knowledge, methods and know-how.
Failure to obtain or maintain trade secret protection could adversely affect our competitive
business position.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>If we infringe intellectual property rights of third parties, it may increase our costs or
prevent us from being able to commercialize our product candidates.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">There is a risk that we are infringing the proprietary rights of third parties because
numerous United States and foreign issued patents and pending patent applications, which are owned
by third parties, exist in the fields that are the focus of our drug discovery, development, and
manufacture and process synthesis efforts. Others might have been the first to make the inventions
covered by each of our or our licensors&#146; pending patent applications and issued patents and might
have been the first to file patent applications for these inventions. In addition, because patent
applications can take many years to issue, there may be currently pending applications, unknown to
us or our licensors, which may later result in issued patents that cover the production,
manufacture, synthesis, commercialization, formulation or use of our product candidates. In
addition, the production, manufacture, synthesis, commercialization, formulation or use of our
product candidates may infringe existing patents of which we are not aware. Defending ourselves
against third-party claims, including litigation in particular, would be costly and time consuming
and would divert management&#146;s attention from our business, which could lead to delays in our
development or commercialization efforts. If third parties are successful in their claims, we might
have to pay substantial damages or take other actions that are adverse to our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As a result of intellectual property infringement claims, or to avoid potential claims, we
might:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be prohibited from
selling or licensing any
product that we and/or any
potential future
collaborators may develop
unless the patent holder
licenses the patent to us,
which the patent holder is
not required to do;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be required to pay
substantial royalties or
other amounts, or grant a
cross license to our
patents to another patent
holder; or</TD>
</TR>


<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be required to redesign the
formulation of a product
candidate so that it does
not infringe, which may not
be possible or could
require substantial funds
and time.</TD>
</TR>

</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Risks Related to Regulatory Approval of Our Product Candidates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>If we or any potential future collaborators are not able to obtain required regulatory
approvals, we or such collaborators will not be able to commercialize our product candidates, and
our ability to generate revenue will be materially impaired.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Our product candidates and the activities associated with their development and
commercialization are subject to comprehensive regulation by the FDA, other regulatory agencies in
the United States and by comparable authorities in other countries. Failure to obtain regulatory
approval for a product candidate will prevent us or any potential future collaborator from
commercializing the product candidate. We have not received regulatory approval to market any of
our product candidates in any jurisdiction, and we do not expect to obtain FDA or any other
regulatory approvals to market any of our product candidates in the near future, if at all. The
process of obtaining regulatory approvals is expensive, often takes many years, if approval is
obtained at all, and can vary substantially based upon the type, complexity and novelty of the
product candidates involved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Changes in the regulatory approval policy during the development period, changes in or the
enactment of additional regulations or statutes, or changes in regulatory review for each submitted
product application, may cause delays in the approval or rejection of an application. For example,
the FDA announced in 2008 that, due to staffing and resource limitations, it has given its managers
discretion to miss certain timing goals for completing reviews of NDAs set forth under the
Prescription Drug User Fee Act, or PDUFA. Although the FDA has since publicly expressed a
recommitment to meeting PDUFA deadlines, it remains unclear whether and to what extent the FDA will
adhere to PDUFA deadlines in the future. If the FDA were to miss a PDUFA timing goal for one of our
product candidates, the development and commercialization of the product candidate could be
delayed. In addition, the Food and Drug Administration Amendments Act of 2007, or FDAAA, which was
enacted in September&nbsp;2007, expands the FDA&#146;s authority to regulate drugs throughout the product
life cycle, including enhanced authority to require post-approval studies and clinical trials.
Other proposals have been made to impose additional requirements on drug approvals, further expand
post-approval requirements and restrict sales and promotional activities. This new legislation, and
the additional proposals if enacted, may make it more difficult or burdensome for us or our
potential future collaborators to obtain approval of our product candidates. Even if the FDA
approves a product candidate, the approval may impose significant restrictions on the indicated
uses, conditions for use, labeling, advertising, promotion, marketing and/or production of such
product, and may impose ongoing requirements for post-approval studies, including additional
research and development and clinical trials. The approval may also impose risk evaluation
mitigation strategies, or REMS, on a product if the FDA believes there is a reason to monitor the
safety of the drug in the market place. REMS may include requirements for additional training for
health care professionals, safety communication efforts and limits on channels of distribution,
among other things. The sponsor would be required to evaluate and monitor the various REMS
activities and adjust them if need be. The FDA also may impose various civil or criminal sanctions
for failure to comply with regulatory requirements, including withdrawal of product approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Furthermore, the approval procedure and the time required to obtain approval varies among
countries and can involve additional testing beyond that required by the FDA. Approval by one
regulatory authority does not ensure approval by regulatory authorities in other jurisdictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The FDA has substantial discretion in the approval process and may refuse to accept any
application or may decide that our data are insufficient for approval and require additional
preclinical, clinical or other studies. For example, in October&nbsp;2009, we received a Complete
Response Letter from the FDA regarding our NDA for toremifene 80 mg to reduce fractures in men with
prostate cancer on ADT notifying us that the FDA would not approve our NDA as a result of certain
clinical deficiencies identified in the Complete Response Letter. We have since determined to
discontinue our toremifene 80 mg development program. In addition, varying
interpretations of the data obtained from preclinical and clinical testing could delay, limit or
prevent regulatory approval of a product candidate. Furthermore, even if we submit an application
to the FDA for marketing approval of a product candidate, it may not result in marketing approval
from the FDA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We do not expect to receive regulatory approval for the commercial sale of any of our product
candidates that are in development, in the near future, if at all. The inability to obtain FDA
approval or approval from comparable authorities in other countries for our product candidates
would prevent us or any potential future collaborators from commercializing these product
candidates in the United States or other countries. See the section entitled &#147;Business &#151;
Government Regulation&#148; under Part&nbsp;1, Item&nbsp;1 of our Annual Report on Form 10-K, filed with the SEC
on March&nbsp;8, 2011, for additional information regarding risks associated with marketing approval, as
well as risks related to post-approval requirements.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Risks Related to Commercialization</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>The commercial success of any products that we and/or any potential future collaborators may
develop will depend upon the market and the degree of market acceptance among physicians, patients,
health care payors and the medical community.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Any products that we and/or any potential future collaborators may develop may not gain market
acceptance among physicians, patients, health care payors and the medical community. If these
products do not achieve an adequate level of acceptance, we may not generate material product
revenues or receive royalties to the extent we currently anticipate, and we may not become
profitable. The degree of market acceptance of our product candidates, if approved for commercial
sale, will depend on a number of factors, including:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>efficacy and safety results in clinical trials;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the prevalence and severity of any side effects;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potential advantages over alternative treatments;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the products we commercialize remain a preferred course of treatment;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ability to offer our product candidates for sale at competitive prices;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>relative convenience and ease of administration;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the strength of marketing and distribution support; and</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sufficient third-party coverage or reimbursement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>Our only marketed product generating revenue is FARESTON</I></B><SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP><B><I>, which is subject to a
number of risks. These risks may cause sales of </I></B><B>FARESTON</B><B><SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> </B><B><I>to decline.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>is currently our only marketed product. FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>is indicated
for the treatment of advanced metastatic breast cancer in postmenopausal women. FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>
competes against tamoxifen, fulvestrant, and several aromatase inhibitors, including
anastrozole, letrozole, and exemestane, for hormonal treatment of breast cancer. Sales of
pharmaceuticals for breast cancer in the SERM class have declined in recent years as competitors
have gained market share, and we believe this trend will continue. Further, the branded competitors
have greater resources and generic competitors are preferred by insurers. Continued sales of
FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>also could be impacted by many other factors, including the boxed warning
added to the label of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> in March&nbsp;2011 to highlight that FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> has
been shown to prolong the QTc interval in a dose- and concentration-related manner and that
prolongation of the QTc interval can result in a type of ventricular tachycardia called Torsades de
pointes, which may result in syncope, or temporary loss of consciousness, seizure, and or death. A
boxed warning is the strongest type of warning that the FDA can require for a drug product and
warns prescribers that the drug carries a significant risk of serious or even life-threatening
adverse effects. The occurrence of one or more of the following risks may cause sales of
FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> to decline:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the loss of one or more of our three largest wholesale drug distributors, which together accounted for
approximately 94% of our product sales of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> for the three months ended March&nbsp;31, 2011;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any further restrictions, limitations, and/or warnings added to the FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> label;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the continued success of competing products, including aromatase inhibitors;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the loss of coverage or reimbursement for FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> from Medicare and Medicaid, private
health insurers or other third-party payors;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>exposure to product liability claims related to the commercial sale of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>, which may
exceed our product liability insurance;</TD>
</TR>

</TABLE>
</DIV><P align="center" style="font-size: 10pt">&nbsp;

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<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the failure of Orion to maintain regulatory filings or comply with applicable FDA requirements with
respect to FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the introduction of generic toremifene products that compete with FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> for the treatment
of breast cancer;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the loss of Orion, upon which we rely as a single source, as our supplier of FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>; and</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the loss of the availability of our website to market FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>, which is an important source
of advertising.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>If we are unable to expand our sales and marketing capabilities or establish and maintain
agreements with third parties to market and sell our product candidates, we may be unable to
generate product revenue from such candidates.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We have limited experience as a company in the sales, marketing and distribution of
pharmaceutical products, and in any event have only limited company personnel to undertake such
activities, and we therefore need to expand our sales and marketing capabilities or establish and
maintain agreements with third parties to market and sell our product candidates. We may be unable
to build our own sales and marketing capabilities and there are risks involved with entering into
arrangements with third parties to perform these services, which could delay the commercialization
of any of our product candidates if approved for commercial sale. In addition, to the extent that
we enter into arrangements with third parties to perform sales, marketing and distribution
services, our product revenues are likely to be lower than if we market and sell any products that
we develop ourselves.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>If we and/or any potential future collaborators are unable to obtain reimbursement or
experience a reduction in reimbursement from third-party payors for products we sell, our revenues
and prospects for profitability will suffer.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Sales of products developed by us and/or any potential future collaborators are dependent on
the availability and extent of reimbursement from third-party payors. Changes in the reimbursement
policies of these third-party payors that reduce reimbursements for FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> and any
other products that we and/or any potential future collaborators may develop and sell could
negatively impact our future operating and financial results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Medicare Prescription Drug, Improvement and Modernization Act of 2003 established
comprehensive Medicare coverage and reimbursement of prescription drugs under Medicare Part&nbsp;D. The
prescription drug program established by this legislation may have the effect of reducing the
prices that we or any potential future collaborators are able to charge for products we and/or any
potential future collaborators develop and sell through the program. This legislation may also
cause third-party payors other than the federal government, including the states under the Medicaid
program, to discontinue coverage for products that we and/or any potential future collaborators may
develop or to lower the amount that they pay.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In March&nbsp;2010, the United States Congress enacted the Patient Protection and Affordable Care
Act and the Health Care and Education Reconciliation Act. This health care reform legislation will
increase the number of individuals who receive health insurance coverage and will close a gap in
drug coverage under Medicare Part&nbsp;D as established in 2003. However, the newly-enacted legislation
also implements cost containment measures that could adversely affect our revenues. These measures
include increased drug rebates under Medicaid starting in 2010 for brand name prescription drugs,
such as FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>, and extension of these rebates to Medicaid managed care,
each of which have reduced the amount of net reimbursement received for FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> and would reduce
the amount of net reimbursement for any other products
that we and/or any potential future collaborators may develop and sell. The legislation also extended 340B discounted pricing on outpatient drugs to children&#146;s hospitals,
critical access hospitals, and rural health centers, which has reduced the amount of
reimbursement received for drugs purchased by these new 340B-covered entities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Additional provisions of the health care reform legislation
may
negatively affect our revenues and prospects for profitability in the future. Along with other
pharmaceutical manufacturers and importers of brand name prescription drugs,
starting in September 2011,
we will be assessed a
fee based on our proportionate share of sales of brand name prescription drugs to certain
government programs, including Medicare and Medicaid, made in the preceding year if such sales exceed a defined threshold. As part of the health care reform
legislation&#146;s provisions closing a funding gap that currently exists in the Medicare Part&nbsp;D
prescription drug program (commonly known as the &#147;donut hole&#148;), as of January 1, 2011, we are required to provide
a 50% discount on brand name prescription drugs, including FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>, sold to
beneficiaries who fall within the donut hole.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Economic pressure on state budgets may result in states increasingly seeking to achieve budget
savings through mechanisms that limit coverage or payment for drugs. State Medicaid programs are
increasingly requesting manufacturers to pay supplemental rebates and requiring prior authorization
for use of drugs where supplemental rebates are not provided. Private health insurers and managed
care plans are likely to continue challenging the prices charged for medical products and services,
and many of these third-party payors may limit reimbursement for newly-approved health care
products. In particular, third-party payors may limit the indications for which they will reimburse
patients who use any products that we and/or any potential future collaborators may develop or
sell. These cost-control initiatives could decrease the price we might establish for products that
we or any potential future collaborators may develop or sell, which would result in lower product
revenues or royalties payable to us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Similar cost containment initiatives exist in countries outside of the United States,
particularly in the countries of the European Union, where the pricing of prescription
pharmaceuticals is subject to governmental control. In these countries, pricing negotiations with
governmental authorities can take six to twelve months or longer after the receipt of regulatory
marketing approval for a product. To obtain reimbursement or pricing approval in some countries, we
or any potential future collaborators may be required to conduct a clinical trial that compares the
cost effectiveness of our product candidates or products to other available therapies. The conduct
of such a clinical trial could be expensive and result in delays in our or a potential future
collaborators&#146; commercialization efforts. Third-party payors are challenging the prices charged for
medical products and services, and many third-party payors limit reimbursement for newly-approved
health care products. In particular, third-party payors may limit the indications for which they
will reimburse patients who use any products that we and/or any potential future collaborators may
develop or sell. Cost-control initiatives could decrease the price we might establish for products
that we or any potential future collaborators may develop or sell, which would result in lower
product revenues or royalties payable to us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Another development that could affect the pricing of drugs would be if the Secretary of Health
and Human Services allowed drug reimportation into the United States. The Medicare Prescription
Drug, Improvement and Modernization Act of 2003 gives discretion to the Secretary of Health and
Human Services to allow drug reimportation into the United States under some circumstances from
foreign countries, including from countries where the drugs are sold at a lower price than in the
United States. If the circumstances were met and the Secretary exercised the discretion to allow
for the direct reimportation of drugs, it could decrease the price we or any potential future
collaborators receive for any products that we and/or any potential future collaborators may
develop, negatively affecting our revenues and prospects for profitability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>Health care reform measures could hinder or prevent our product candidates&#146; commercial
success.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Among policy makers and payors in the United States and elsewhere, there is significant
interest in promoting health care reform, as evidenced by the recent enactment in the United States
of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation
Act. It is likely that federal and state legislatures within the United States and foreign
governments will continue to consider changes to existing health care legislation. These changes
adopted by governments may adversely impact our business by lowering the price of health care
products in the United States and elsewhere.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We operate in a highly regulated industry and new laws, regulations or judicial decisions, or
new interpretations or existing laws, regulations or decisions, related to health care
availability, method of delivery or payment for health care products and services, or sales,
marketing and pricing practices could negatively impact our business, operations and financial
condition.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->32<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>If product liability lawsuits are brought against us, we may incur substantial liabilities and
may be required to limit commercialization of any products that we may develop.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We face an inherent risk of product liability exposure related to our commercial sale of
FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> and the testing of our product candidates in human clinical trials and will
face an even greater risk if we commercially sell any product that we may develop. If we cannot
successfully defend ourselves against claims that our product candidates or products caused
injuries, we will incur substantial liabilities. Regardless of merit or eventual outcome, liability
claims may result in:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>decreased demand for any product candidates or products;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>injury to our reputation;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>withdrawal of clinical trial participants;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>costs to defend the related litigation;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>substantial monetary awards to trial participants or patients;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>loss of revenue; and</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the inability to commercialize any products for which we obtain
or hold marketing approvals.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We have product liability insurance that covers our clinical trials and commercial products up
to a $20&nbsp;million annual aggregate limit. Insurance coverage is increasingly expensive. We may not
be able to maintain insurance coverage at a reasonable cost and we may not be able to obtain
insurance coverage that will be adequate to satisfy any liability that may arise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>If our competitors are better able to develop and market products than any products that we
and/or any potential future collaborators may develop, our commercial opportunity will be reduced
or eliminated.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We face competition from commercial pharmaceutical and biotechnology enterprises, as well as
from academic institutions, government agencies and private and public research institutions. Our
commercial opportunities will be reduced or eliminated if our competitors develop and commercialize
products that are safer, more effective, have fewer side effects or are less expensive than any
products that we and/or any potential future collaborators may develop. Competition could result in
reduced sales and pricing pressure on our product candidates, if approved, which in turn would
reduce our ability to generate meaningful revenue and have a negative impact on our results of
operations. In addition, significant delays in the development of our product candidates could
allow our competitors to bring products to market before us and impair any ability to commercialize
our product candidates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Various products are currently marketed or used off-label for some of the diseases and
conditions that we are targeting in our pipeline, and a number of companies are or may be
developing new treatments. These product uses, as well as promotional efforts by competitors and/or
clinical trial results of competitive products, could significantly diminish any ability to market
and sell any products that we and/or any potential future collaborators may develop.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">With respect to our SARM program, there are other SARM product candidates in development that
may compete with our SARM product candidates, if approved for commercial sale, including SARMs in
development from Ligand Pharmaceuticals Inc., GlaxoSmithKline, and Merck&nbsp;&#038;&nbsp;Co., Inc. Pfizer Inc., Eli Lilly &#038;
Co., and Amgen have myostatin inhibitors in development that may compete with Ostarine&#153; if approved
for commercial sale. In addition, Cytokinetics, Inc. is developing a troponin activator with a
muscle specific mechanism in Phase II studies, with a focus on neurological muscle diseases
(amyotrophic lateral sclerosis and myasthenia gravis). Moreover, there are other categories of
drugs in development, including ghrelin receptor agonists and growth hormone secretagogues that may
have some muscle building activity. Other appetite stimulants such as megestrol acetate and
dronabinol are also used off-label for weight loss and loss of appetite in patients with cancer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We are developing Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> for first line treatment of advanced prostate cancer.
Currently, there are several products approved to reduce testosterone levels in men with advanced
prostate cancer that may compete with Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP> if approved for commercial sale,
including those marketed by Abbott Laboratories (Lupron Depot<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>), Sanofi-Aventis
(Eligard<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>), AstraZeneca (Zoladex<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>), Ferring Pharmaceuticals
(Firmagon<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>), Endo Pharmaceuticals (Vantas<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>) and Watson Pharmaceuticals
(Trelstar<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Many of our competitors have significantly greater financial resources and expertise in
research and development, manufacturing, preclinical testing, conducting clinical trials, obtaining
regulatory approvals and marketing approved products than we do. Smaller or early-stage companies
may also prove to be significant competitors, particularly through collaborative arrangements with
large and established companies. These third parties compete with us in recruiting and retaining
qualified scientific and management personnel, establishing clinical trial sites and patient
registration for clinical trials, as well as in acquiring technologies and technology licenses
complementary to our programs or advantageous to our business.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->33<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Risks Related to Employees and Growth</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>If we fail to attract and keep senior management and key scientific personnel, we may be
unable to successfully develop or commercialize our product candidates.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Our success depends on our continued ability to attract, retain and motivate highly qualified
management, clinical and scientific personnel and on our ability to develop and maintain important
relationships with leading academic institutions, clinicians and scientists. If we are not able to
attract and keep senior management and key scientific personnel, particularly Dr.&nbsp;Mitchell S.
Steiner, we may not be able to successfully develop or commercialize our product candidates. All of
our employees are at-will employees and can terminate their employment at any time. We do not carry
&#147;key person&#148; insurance covering members of senior management, other than $22.5&nbsp;million of insurance
covering Dr.&nbsp;Steiner.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In December&nbsp;2009, we announced a reduction of approximately 26% of our workforce in order to
reduce our operating expenses in connection with the receipt of the Complete Response Letter
regarding our NDA for toremifene 80 mg and the associated delay in the potential regulatory
approval of toremifene 80 mg. This and any future workforce reductions may negatively affect our
ability to retain or attract talented employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>We will need to hire additional employees in order to commercialize our product candidates in
the future. Any inability to manage future growth could harm our ability to commercialize our
product candidates, increase our costs and adversely impact our ability to compete effectively.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In order to commercialize our product candidates in the future, we will need to expand the
number of our managerial, operational, financial and other employees and competition exists for
qualified personnel in the biotechnology field.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Future growth will impose significant added responsibilities on members of management,
including the need to identify, recruit, maintain and integrate additional employees. Our future
financial performance and our ability to commercialize our product candidates and to compete
effectively will depend, in part, on our ability to manage any future growth effectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&nbsp;&nbsp;&nbsp;&nbsp;</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Risks Related to our Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>Market volatility may cause our stock price and the value of your investment to decline.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The market prices for securities of biotechnology companies in general have been highly
volatile and may continue to be so in the future. The following factors, in addition to other risk
factors described in this section, may have a significant impact on the market price of our common
stock:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>delays in the initiation or completion of our currently-planned clinical trials of Ostarine&#153; and
Capesaris<SUP style="FONT-size: 85%; vertical-align: text-top">TM</SUP>, or adverse results in any of our initiated clinical trials;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to enter into new collaborative arrangements with respect to our product candidates;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the terms and timing of any future collaborative, licensing or other arrangements that we may establish;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to raise additional capital to carry through with our clinical development plans and current and
future operations and the terms of any related financing arrangements;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the timing of achievement of, or failure to achieve, our and any potential future collaborators&#146; clinical,
regulatory and other milestones, such as the commencement of clinical development, the completion of a clinical trial or
the receipt of regulatory approval;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>announcement of FDA approval or non-approval of our product candidates, or delays in or adverse events during the
FDA review process;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>actions taken by regulatory agencies with respect to our product candidates or products, our clinical trials or
our sales and marketing activities, including regulatory actions requiring or leading to restrictions, limitations and/or
warnings in the label of an approved product candidate;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes to the label for FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> that further restrict how we market and sell FARESTON<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>;</TD>
</TR>

</TABLE>
</DIV><P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the commercial success of any product approved by the FDA or its foreign counterparts;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>introductions or announcements of technological innovations or new products by us, our potential future
collaborators, or our competitors, and the timing of these introductions or announcements;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>market conditions for equity investments in general, or the biotechnology or pharmaceutical industries in
particular;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>regulatory developments in the United States and foreign countries;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in the structure or reimbursement policies of health care payment systems;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any intellectual property infringement lawsuit involving us;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>actual or anticipated fluctuations in our results of operations;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in financial estimates or recommendations by securities analysts;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sales of large blocks of our common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sales of our common stock by our executive officers, directors and significant stockholders;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in accounting principles; and</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the loss of any of our key scientific or management personnel.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The stock markets in general, and the markets for biotechnology stocks in particular, have
experienced significant volatility that has often been unrelated to the operating performance of
particular companies. The financial markets continue to face significant uncertainty, resulting in
a decline in investor confidence and concerns about the proper functioning of the securities
markets, which decline in general investor confidence has resulted in depressed stock prices for
many companies notwithstanding the lack of a fundamental change in their underlying business models
or prospects. These broad market fluctuations may adversely affect the trading price of our common
stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In the past, class action litigation has often been instituted against companies whose
securities have experienced periods of volatility in market price. Any such litigation brought
against us could result in substantial costs, which would hurt our financial condition and results
of operations and divert management&#146;s attention and resources, which could result in delays of our
clinical trials or commercialization efforts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>Our executive officers, directors and largest stockholders have the ability to control all
matters submitted to stockholders for approval.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As of March&nbsp;31, 2011, our executive officers, directors and holders of 5% or more of our
outstanding common stock beneficially owned approximately 70.1% of our outstanding common stock,
and our executive officers and directors alone beneficially owned approximately 45.1% of our
outstanding common stock. As a result, these stockholders, acting together, may or will have the
ability to control all matters requiring approval by our stockholders, including the election of
directors and the approval of mergers or other business combination transactions. The interests of
this group of stockholders may not always coincide with our interests or the interests of other
stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>Anti-takeover provisions in our charter documents and under Delaware law could make an
acquisition of us, which may be beneficial to our stockholders, more difficult and may prevent
attempts by our stockholders to replace or remove our current management.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Provisions in our certificate of incorporation and our bylaws may delay or prevent an
acquisition of us or a change in our management. In addition, these provisions may frustrate or
prevent any attempts by our stockholders to replace or remove our current management by making it
more difficult for stockholders to replace members of our Board of Directors. Because our Board of
Directors is responsible for appointing the members of our management team, these provisions could
in turn affect any attempt by our stockholders to replace current members of our management team.
These provisions include:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a classified Board of Directors;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a prohibition on actions by our stockholders by written consent;</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ability of our Board of Directors to issue preferred stock
without stockholder approval, which could be used to institute a &#147;poison
pill&#148; that would work to dilute the stock ownership of a potential hostile
acquirer, effectively preventing acquisitions that have not been approved
by our Board of Directors; and</TD>
</TR>

<TR>
    <TD style="font-size: 8pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limitations on the removal of directors.</TD>
</TR>

</TABLE>
</DIV><P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Moreover, because we are incorporated in Delaware, we are governed by the provisions of
Section&nbsp;203 of the Delaware General Corporation Law, which prohibits a person who owns in excess of
15% of our outstanding voting stock from merging or combining with us for a period of three years
after the date of the transaction in which the person acquired in excess of 15% of our outstanding
voting stock, unless the merger or combination is approved in a prescribed manner. Finally, these
provisions establish advance notice requirements for nominations for election to our Board of
Directors or for proposing matters that can be acted upon at stockholder meetings. These provisions
would apply even if the offer may be considered beneficial by some stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B><I>If there are substantial sales of our common stock, the market price of our common stock could
drop substantially, even if our business is doing well.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">For the 12-month period ended March&nbsp;31, 2011, the average daily trading volume of our common
stock on the NASDAQ Global Market was 191,055 shares. As a result, future sales of a substantial
number of shares of our common stock in the public market, or the perception that such sales may
occur, could adversely affect the then-prevailing market price of our common stock. As of March&nbsp;31,
2011, we had 51,719,187 shares of common stock outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Moreover, J.R. Hyde, III, and Oracle Investment Management, Inc., two of our largest
stockholders, and their affiliates, have rights, subject to some conditions, to require us to file
registration statements covering the approximately 10.8&nbsp;million shares of common stock they hold in
the aggregate which are subject to registration rights or to include these shares in registration
statements that we may file for ourselves or other stockholders. If any of these large stockholders
were to sell large blocks of shares in a short period of time, the market price of our common stock
could drop substantially.
</DIV>
<DIV align="left">
<A name="C16570112"></A>
</DIV>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>ITEM 5.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>OTHER INFORMATION</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">On March&nbsp;11, 2011, we notified the University of Tennessee Research Foundation, or UTRF, of
our election to terminate that certain Amended and Restated License Agreement, dated September&nbsp;24,
2007, as amended, between us and UTRF, or the SERM License Agreement, which such termination will
be effective on June&nbsp;11, 2011 or such earlier date that we and UTRF may agree. Under the SERM
License Agreement, we were granted exclusive worldwide rights to UTRF&#146;s method of use patents
relating to SERMs, including toremifene for chemoprevention of prostate cancer as well as future
related SERM technologies that may be developed by certain scientists at the University of
Tennessee. Under the SERM License Agreement, we were obligated to pay UTRF annual license
maintenance fees, low single digit royalties on net sales of any products and mid single-digit
royalties on any sublicense revenues. The termination of the SERM License Agreement will not
affect our existing license agreement with UTRF related to SARM technologies.
</DIV>
<DIV align="left">
<A name="C16570113"></A>
</DIV>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>ITEM 6.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>EXHIBITS</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The exhibits listed on the accompanying Exhibit&nbsp;Index are filed or incorporated by reference
(as stated therein) as part of this Quarterly Report on Form 10-Q.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->36<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="left">
<A name="C16570114"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>GTx, Inc.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: May 9, 2011&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Mitchell S. Steiner
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Mitchell S. Steiner, Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">and Vice-Chairman of the Board of Directors&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date:  May 9, 2011&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Mark E. Mosteller
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Mark E. Mosteller, Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">and Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->37<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



<DIV align="left">
<A name="C16570114"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="86%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Number</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Restated Certificate of Incorporation of GTx, Inc.<SUP style="FONT-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Certificate of Amendment of Restated Certificate of Incorporation of GTx, Inc.<SUP style="FONT-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Amended and Restated Bylaws of GTx, Inc.<SUP style="FONT-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Reference is made to Exhibits 3.1, 3.2 and 3.3</DIV></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Specimen of Common Stock Certificate<SUP style="FONT-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Amended and Restated Registration Rights Agreement between Registrant and Oracle
Partners, L.P. dated August&nbsp;7, 2003<SUP style="FONT-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Amended and Restated Registration Rights Agreement between Registrant and J. R. Hyde,
III dated August&nbsp;7, 2003<SUP style="FONT-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consent, Waiver and Amendment between the Registrant and Oracle Partners, L.P., Oracle
Investment Management, Inc. and Oracle Institutional Partners, L.P. dated November&nbsp;29,
2007<SUP style="FONT-size: 85%; vertical-align: text-top">(5)</SUP></DIV></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.6</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consent, Waiver and Amendment between Registrant and J. R. Hyde, III and Pittco
Associates, L.P. dated December&nbsp;3, 2007<SUP style="FONT-size: 85%; vertical-align: text-top">(5)</SUP></DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.29</TD>
    <TD nowrap valign="top">*&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2011 Compensation Information for Registrant&#146;s Executive Officers</DIV></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.50</TD>
    <TD nowrap valign="top">*&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Non-Employee Director Compensation Policy of GTx, Inc., effective February&nbsp;18, 2011</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.57</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Second Amendment to Sublease and Parking Sublicense Agreements dated January&nbsp;1, 2011 by
and between the Registrant and ESS SUSA Holdings, LLC<SUP style="FONT-size: 85%; vertical-align: text-top">(6)</SUP></DIV></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.58</TD>
    <TD nowrap valign="top">*&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Letter Agreement, dated February&nbsp;25, 2011, between the Registrant and Ipsen Biopharm
Limited</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31.1</TD>
    <TD nowrap valign="top">*&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Certification of Chief Executive Officer, as required by Rule&nbsp;13a-14(a) or Rule&nbsp;15d-14(a)</DIV></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31.2 </TD>
    <TD nowrap valign="top">*&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Certification of Chief Financial Officer, as required by Rule&nbsp;13a-14(a) or Rule&nbsp;15d-14(a)</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32.1 </TD>
    <TD nowrap valign="top">*&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Certification of Chief Executive Officer, as required by Rule&nbsp;13a-14(b) or Rule
15d-14(b) and Section&nbsp;1350 of Chapter&nbsp;63 of Title 18 of the United States Code (18
U.S.C. &#167;1350)<SUP style="FONT-size: 85%; vertical-align: text-top"> (7)</SUP></DIV></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32.2 </TD>
    <TD nowrap valign="top">*&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Certification of Chief Financial Officer, as required by Rule&nbsp;13a-14(b) or Rule
15d-14(b) and Section&nbsp;1350 of Chapter&nbsp;63 of Title 18 of the United States Code (18
U.S.C. &#167;1350)<SUP style="FONT-size: 85%; vertical-align: text-top"> (7)</SUP></DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 10pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Filed herewith.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="FONT-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Filed as Exhibit&nbsp;4.1 to the Registrant&#146;s registration statement on Form S-3 (File
No.&nbsp;333-127175), filed with the SEC on August&nbsp;4, 2005, and incorporated herein by reference.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="FONT-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Filed as the like numbered Exhibit to the Registrant&#146;s Current Report on Form 8-K
(File No.&nbsp;000-50549), filed with the SEC on May&nbsp;6, 2011, and incorporated herein
by reference.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="FONT-size: 85%; vertical-align: text-top">(3)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Filed as Exhibit 3.2 to the Registrant&#146;s Current Report on Form 8-K
(File No.&nbsp;000-50549), filed with the SEC on July&nbsp;26, 2007, and incorporated herein
by reference.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="FONT-size: 85%; vertical-align: text-top">(4)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Filed as the like numbered Exhibit to the Registrant&#146;s registration statement on
Form S-1 (File No.&nbsp;333-109700), initially filed with the SEC on October&nbsp;15, 2003, as amended,
and incorporated herein by reference.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="FONT-size: 85%; vertical-align: text-top">(5)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Filed as the like numbered Exhibit to the Registrant&#146;s registration statement on
Form S-3 (File No.&nbsp;333-148321), filed with the SEC on December&nbsp;26, 2007, and incorporated
herein by reference.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="FONT-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Filed as the like numbered Exhibit to the Registrant&#146;s Annual Report on Form 10-K
(File No.&nbsp;000-50549), filed with the SEC on March&nbsp;8, 2011, and
incorporated herein by reference.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="FONT-size: 85%; vertical-align: text-top"> (7)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD> This certification accompanies the Form 10-Q to which it relates, is not deemed
filed with the Securities and Exchange Commission and is not to be incorporated by reference
into any filing of the Registrant under the Securities Act of 1933, as amended, or the
Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form
10-Q), irrespective of any general incorporation language contained in such filing.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->38<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.29
<SEQUENCE>2
<FILENAME>c16570exv10w29.htm
<DESCRIPTION>EXHIBIT 10.29
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.29</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;10.29</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>2011 COMPENSATION INFORMATION FOR REGISTRANT&#146;S EXECUTIVE OFFICERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The table below provides information regarding (i)&nbsp;the base salary of each executive officer
of GTx, Inc. (the &#147;Company&#148;), effective as of
January&nbsp;1, 2011 (except as noted), and (ii)&nbsp;the target cash bonus award
for Fiscal 2011 for each of the Company&#146;s executive officers under the Company&#146;s Executive Bonus
Compensation Plan, expressed as a percentage of applicable base salary:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2011</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2011</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Target</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Annual</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Bonus (%</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Executive Officer</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Salary ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Salary)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mitchell S. Steiner</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer and Vice-Chairman of the Board of Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">525,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Marc S. Hanover</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Operating Officer</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">456,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ronald A. Morton, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President, Chief Medical Officer</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">452,025</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James T. Dalton</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President, Chief Scientific Officer</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">400,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Henry P. Doggrell</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President, General Counsel and Secretary</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">351,281</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mark E. Mosteller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President, Chief Financial Officer and Treasurer</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">298,083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Dr.&nbsp;Morton will also be eligible for tax gross-up payments related to certain
travel expenses paid by the Company during 2011 on his behalf.</TD>
</TR>

<TR><TD colspan="3">&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Effective as of February&nbsp;21, 2011.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.50
<SEQUENCE>3
<FILENAME>c16570exv10w50.htm
<DESCRIPTION>EXHIBIT 10.50
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.50</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;10.50</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Non-Employee Director Compensation Policy of GTx, Inc.<BR>
Effective Date: 2/18/2011</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>I.&nbsp;Purpose</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">This Policy sets forth guidelines pertaining to compensation for non-employee Directors of the GTx,
Inc. Board of Directors (&#147;Board&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>II.&nbsp;Scope</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">This Policy applies to all non-employee members of the Board and is not applicable to employee
members of the Board. This Policy shall remain in effect until it is revised or rescinded by
further action of the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>III. Policy Statements</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The Board sets non-employee Directors&#146; compensation at the recommendation of the Nominating and
Corporate Governance Committee and the Compensation Committee. Compensation for non-employee
Directors is comprised of a mix of cash and equity-based compensation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Periodically, at the direction of the Nominating and Corporate Governance Committee, the Company
provides information from independent consultants and/or data management sources relating to Board
compensation paid by companies comparable to the Company within the biotech and pharmaceutical
industries. The Nominating and Corporate Governance Committee uses this information in making its
recommendations to the Compensation Committee regarding any modifications to Board compensation.
The Compensation Committee considers the information and recommendations provided by the Nominating
and Corporate Governance Committee and makes its recommendations to the Board. The Board then sets
the Directors&#146; compensation taking into account the recommendations from the Committees. Cash
compensation payments and equity awards shall be paid or be made, as applicable, automatically and
without further action of the Board, unless such non-employee Director declines to receive such
compensation or awards by written notice to the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>A. </B><U><B>Cash Compensation </B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><I>Annual Retainer</I></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Each non-employee Director shall be eligible to receive an annual retainer of $25,000, except the
Chairman of the Audit Committee who shall receive an annual retainer of $35,000 for services on the
Board. The annual retainer will be paid in quarterly installments, on or about the first day of
each quarterly period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><I>Meeting Stipends</I></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Each non-employee Director shall receive a stipend of $2,000 for every regularly scheduled (or
special) meeting of the Board and its committees physically attended by such Director and a $750
stipend for each telephonic meeting in which the Director participated, payable after the end of
each calendar quarter.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Director Compensation Policy
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Page 1 of 3</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><I>Expense Reimbursement</I></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The Company shall reimburse a non-employee Director for all of his or her reasonable expenses
incurred to attend meetings of the Board or its committees. Any travel expenses shall be reimbursed
in accordance with the Company&#146;s standard travel policy. The travel expenses will be reimbursed
within thirty (30)&nbsp;days after receipt by the Company of an invoice together with originals or
copies of receipts showing the payment of such expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>B. Directors&#146; Deferred Compensation </B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Each non-employee Director has the opportunity to defer all or a portion of his or her cash
compensation under the Company&#146;s Directors&#146; Deferred Compensation Plan. Deferrals can be made into
a cash account, a stock unit account, or a combination of both. All distributions under the
Directors&#146; Deferred Compensation Plan will be made in the form of a single lump sum in cash (for
amounts credited to cash accounts) or in shares of GTx common stock (for amounts credited to stock
unit accounts), except that any fractional shares of GTx common stock will be distributed in cash
valued at the then current fair market value of GTx common stock, all of which is more particularly
set forth in the Directors&#146; Deferred Compensation Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>C. Equity-Based Compensation </B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The Company&#146;s 2004 Non-Employee Directors&#146; Stock Option Plan, as amended, provides for the
automatic grant of initial and annual nonstatutory stock options to GTx&#146;s non-employee Directors
who do not own more than ten percent of the combined voting power of GTx&#146;s then outstanding
securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><I>Initial Award</I></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Pursuant to the 2004 Non-Employee Directors&#146; Stock Option Plan, as amended, any individual who
first becomes a non-employee Director automatically is granted an option to purchase shares of GTx
common stock. The number of shares subject to each of these initial option grants is 15,000 shares,
provided that the number of options may be increased or decreased by the Board in its sole
discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><I>Annual Awards</I></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Any individual who is serving as a non-employee Director on the day following an annual meeting of
GTx&#146;s stockholders automatically will be granted an option to purchase shares of common stock on
that date; provided, however, that if the individual has not been serving as a non-employee
director for the entire period since the preceding annual meeting, the number of shares subject to
such individual&#146;s annual grant will be reduced pro rata for each full month prior to the date of
grant during which such individual did not serve as a non-employee Director. The number of shares
subject to each annual option grant is 15,000 shares, provided that the number of options may be
increased or decreased by the Board in its sole discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><I>Provisions Applicable to All Non-Employee Director Awards</I></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The exercise price per share for the options granted under the 2004 Non-Employee Directors&#146; Stock
Option Plan, as amended, is not less than the fair market value of the Company&#146;s common stock on
the date of grant. The options which are the subject of an initial grant and an annual grant will
vest in a series of three successive equal annual installments measured from the date of grant, so
that each initial grant of options and each annual grant will be fully vested three years after the
date of grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">In the event of specified corporate transactions, as defined in the 2004 Non-Employee Directors&#146;
Stock Option Plan, as amended, all outstanding options under the 2004 Non-Employee Directors&#146; Stock
Option Plan, as amended, may be assumed or substituted for by any surviving or acquiring entity. If
the surviving or acquiring entity elects not to assume or substitute for such options, then (a)
with respect to any such options that are held by optionees then performing services for GTx
or its affiliates, the vesting and exercise of such options will be accelerated in full and such
options will be terminated if not exercised prior to the effective date of the corporate
transaction, and (b)&nbsp;all other outstanding options will terminate if not exercised prior to the
effective date of the corporate transaction.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Director Compensation Policy
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Page 2 of 3</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">If a specified &#147;change of control&#148; transaction occurs, as defined in the 2004 Non-Employee
Directors&#146; Stock Option Plan, as amended, then the vesting and exercise of the optionee&#146;s options
will be accelerated in full immediately prior to (and contingent upon) the effectiveness of the
transaction. If an optionee is required to resign his or her position as a non-employee Director as
a condition of the transaction, the vesting and exercise of the optionee&#146;s options will be
accelerated in full immediately prior to the effectiveness of such resignation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>IV. Related Documents / Information</I></B><BR>
<BR>
A. Directors&#146; Deferred Compensation Plan<BR>
<BR>
B. 2004 Non-Employee Directors&#146; Stock Option Plan (Amended)<BR>
<BR>
C. <I>Finance Policy, Business Travel and Expense</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>V. Policy Owner</I></B><BR><BR>
For assistance with interpretation regarding this policy, or any questions relating to this policy,
contact:<BR>
Henry P. Doggrell<BR>
VP, General Counsel<BR>
(901)&nbsp;507-6916<BR>
hdoggrell@gtxinc.com

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>VI. Revision History</I></B><BR>
<BR>
Original Policy &#151; Effective 1/1/2009<BR>
(Adopted by the GTx, Inc. Compensation Committee of the Board of Directors on 11/4/2008)

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>VII. Approval</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The signature below indicates that this policy has been approved by the Finance Department as of
the approval date set forth below.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Henry P. Doggrell
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">February&nbsp;28, 2011</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Henry P. Doggrell</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Date</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Vice President, General Counsel
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body --></TABLE>
</DIV>




<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.58
<SEQUENCE>4
<FILENAME>c16570exv10w58.htm
<DESCRIPTION>EXHIBIT 10.58
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.58</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit 10.58</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">25 February&nbsp;2011
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Dr.&nbsp;Mitchell S. Steiner<BR>
Chief Executive Officer<BR>
GTx, Inc.<BR>
175 Toyota Plaza, 7<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor<BR>
Memphis, Tennessee 38103<BR>
U.S.A

</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><U><B>By email-and UPS</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Re:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>Mutually agreed termination of the Toremifene Collaboration and License Agreement dated 7
September&nbsp;2006 as amended by First Amendment dated 22 March&nbsp;2010</U></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Dear Mitch:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We refer to the Collaboration and License Agreement dated 7 September&nbsp;2006 (as amended, the
&#147;<U>Agreement</U>&#148;) between GTx, Inc. (&#147;<U>GTx</U>&#148;) and Ipsen Limited (n/k/a Ipsen Biopharm
Limited) (&#147;<U>Ipsen</U>&#148; and, together with GTx, the &#147;<U>Parties</U>&#148;), as amended by the First
Amendment dated 22 March&nbsp;2010 (&#147;<U>Amendment</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Letter Agreement formalizes the mutually agreed decision made by Ipsen and GTx based on
the discussions held in New York on 21 February&nbsp;2011 among the Parties&#146; representatives,
specifically Dr.&nbsp;Mitchell Steiner, Marc Hanover, Henry Doggrell and David Levinson of GTx, and
St&#233;phane Thiroloix, Sean McKercher, Vanessa Malier and Toshiki Enomoto of Ipsen as follows:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to approval of Ipsen&#146;s board of directors which Ipsen shall notify to
GTx on or before 1 March&nbsp;2011 5:00 pm US EST, the Agreement and the Amendment are
hereby terminated by mutual agreement of the Parties as of 1 March&nbsp;2011, except as
provided at Sections&nbsp;2 to 6 below.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In consideration of Ipsen&#146;s agreement to terminate its rights and obligations
in the Ipsen Territory except as provided herein, including its rights to Right of
First Negotiation to GTx-758, GTx agrees to pay to Ipsen running royalty payments in US
dollars on US Net Sales of the Licensed Product for the ADT Indication in the amount of
3% until the later to occur of (a)&nbsp;the last Valid Patent Claim to expire in the US or
(b)&nbsp;if the expiry of a Valid Patent Claim occurs earlier than 30 November&nbsp;2022 as a
result of a third party claim which shall lead to generic market penetration in the US
by more than 20% for a period of two (2)&nbsp;consecutive quarters, then at the end of that
second quarter. The US Royalty Payment due to Ipsen on account of US Net Sales shall
be payable by GTx to Ipsen within 60&nbsp;days of the end of each Calendar Quarter for which
royalty payments are owed, accompanied by a quarterly report providing in reasonable
detail in quantity and value an accounting of the US Net Sales made during such
Calendar Quarter. Furthermore, Article&nbsp;11.4 of the Agreement (i.e., records and audit
rights) shall apply <I>mutatis mutandis </I>to Ipsen&#146;s right to verify the accuracy of GTx&#146;s
reports for the calculation of US Net Sales of the Licensed Product for the ADT
Indication.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as provided herein, no party shall be entitled to receive any
compensation whatsoever as a consequence of such mutual termination.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as provided herein, Ipsen and GTx shall be fully and entirely discharged
from any and all of their respective obligations under the Agreement and the Amendment
and shall have no liability relating thereto, except for all obligations set forth in
Article&nbsp;XIII &#147;Indemnification,&#148; Article&nbsp;XIV &#147;Dispute Resolution,&#148; and Articles 15.4
through 15.13 which shall survive this mutual termination and remain binding upon Ipsen
and GTx as applicable to this Letter Agreement until the expiry of the term mentioned
at Section&nbsp;2 above and Article&nbsp;VIII &#147;Confidentiality&#148;, which shall survive this mutual
termination and remain binding upon Ipsen and GTx for the time-period mentioned in such
provision, provided that, the Parties agree that notwithstanding the provisions of
Section&nbsp;8.4 of the Agreement, GTx shall not be required to provide to Ipsen for prior
review and approval &#147;any proposed scientific/technical publications or scientific
presentations which relate to Toremifene and/or Licensed Product&#148; as otherwise required
under Section&nbsp;8.4.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties hereby agree that the Parties shall issue a press release relating
to this mutual termination of the Agreement and the Amendment on 2 March&nbsp;2011. Working
draft of press releases concerning this mutual termination shall be provided to Ipsen
or GTx by the originator of the release no later than 25 February&nbsp;2011 5:00 pm US EST
for the other party&#146;s written approval, which shall not unreasonably be withheld or
delayed, except to the extent required by applicable laws or stock exchange rules.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">All capitalized terms used in this Letter Agreement without definition have the respective
meanings provided in the Agreement and the Amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Please confirm your agreement to this mutual termination by returning to us a countersigned
copy of this letter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">This Letter Agreement takes effect as of the date first above written.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Yours sincerely,
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="55%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ St&#233;phane Thiroloix</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
St&#233;phane Thiroloix
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Executive Vice President, Corporate Development</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left" nowrap>Acknowledged and agreed as of <U>February&nbsp;28, 2011</U><BR>
<BR>
GTx, Inc.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Mitchell S. Steiner
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Cc: GTx, Inc. (Vice President, General Counsel and Secretary)
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>5
<FILENAME>c16570exv31w1.htm
<DESCRIPTION>EXHIBIT 31.1
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 31.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">EXHIBIT 31.1

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">CHIEF EXECUTIVE OFFICER CERTIFICATION
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">I, Mitchell S. Steiner, certify that:
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have reviewed this Quarterly Report on Form 10-Q of GTx, Inc.;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this
report;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(a)&nbsp;Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this
report is being prepared;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(b)&nbsp;Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting
principles;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(c)&nbsp;Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the disclosure
controls and procedures, as of the end of the period covered by this report based on such
evaluation; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(d)&nbsp;Disclosed in this report any change in the registrant&#146;s internal control over
financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the
registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant&#146;s internal control
over financial reporting; and
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the
audit committee of the registrant&#146;s board of directors (or persons performing the equivalent
functions):</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(a)&nbsp;All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect
the registrant&#146;s ability to record, process, summarize and report financial information; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(b)&nbsp;Any fraud, whether or not material, that involves management or other employees who
have a significant role in the registrant&#146;s internal control over financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Date: May&nbsp;9, 2011
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="59%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Mitchell S. Steiner
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Mitchell S. Steiner, M.D., F.A.C.S.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Chief Executive Officer and</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Vice-Chairman of the Board of Directors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>6
<FILENAME>c16570exv31w2.htm
<DESCRIPTION>EXHIBIT 31.2
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 31.2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">EXHIBIT 31.2
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">CHIEF FINANCIAL OFFICER CERTIFICATION
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">I, Mark E. Mosteller, certify that:
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have reviewed this Quarterly Report on Form 10-Q of GTx, Inc.;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this
report;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(a)&nbsp;Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this
report is being prepared;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(b)&nbsp;Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting
principles;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(c)&nbsp;Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the disclosure
controls and procedures, as of the end of the period covered by this report based on such
evaluation; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(d)&nbsp;Disclosed in this report any change in the registrant&#146;s internal control over
financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the
registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant&#146;s internal control
over financial reporting; and
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the
audit committee of the registrant&#146;s board of directors (or persons performing the equivalent
functions):</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(a)&nbsp;All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect
the registrant&#146;s ability to record, process, summarize and report financial information; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(b)&nbsp;Any fraud, whether or not material, that involves management or other employees who
have a significant role in the registrant&#146;s internal control over financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Date: May&nbsp;9, 2011
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="59%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Mark E. Mosteller
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Mark E. Mosteller, CPA
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Vice President and Chief Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>7
<FILENAME>c16570exv32w1.htm
<DESCRIPTION>EXHIBIT 32.1
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 32.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>EXHIBIT 32.1</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">CERTIFICATION PURSUANT TO<BR>
18 U. S. C. SECTION 1350,<BR>
AS ADOPTED PURSUANT TO<BR>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">In connection with the Quarterly Report of GTx, Inc. (the &#147;Company&#148;) on Form 10-Q for the three
months ended March&nbsp;31, 2011, as filed with the Securities and Exchange Commission on the date
hereof (the &#147;Report&#148;), I, Mitchell S. Steiner, Chief Executive Officer of the Company certify,
pursuant to Rule&nbsp;13a-14(b) or Rule&nbsp;15d-14(b) and 18 U.S.C. Section&nbsp;1350, as adopted pursuant to
Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Date: May&nbsp;9, 2011
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="59%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Mitchell S. Steiner
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Mitchell S. Steiner, M.D., F.A.C.S.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Chief Executive Officer and</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Vice-Chairman of the Board of Directors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the
Securities and Exchange Commission and is not to be incorporated by reference into any filing of
the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934
(whether made before or after the date of the Form 10-Q), irrespective of any general incorporation
language contained in such filing.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>8
<FILENAME>c16570exv32w2.htm
<DESCRIPTION>EXHIBIT 32.2
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 32.2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">




<DIV align="left" style="font-size: 10pt; margin-top: 10pt">EXHIBIT 32.2

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">CERTIFICATION PURSUANT TO<BR>
18 U. S. C. SECTION 1350,<BR>
AS ADOPTED PURSUANT TO<BR>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">In connection with the Quarterly Report of GTx, Inc. (the &#147;Company&#148;) on Form 10-Q for the three
months ended March&nbsp;31, 2011, as filed with the Securities and Exchange Commission on the date
hereof (the &#147;Report&#148;), I, Mark E. Mosteller, Chief Financial Officer of the Company certify,
pursuant to Rule&nbsp;13a-14(b) or Rule&nbsp;15d-14(b) and 18 U.S.C. Section&nbsp;1350, as adopted pursuant to
Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:
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<DIV style="margin-top: 10pt">
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and</TD>
</TR>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company.</TD>
</TR>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Date: May&nbsp;9, 2011
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    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="59%">&nbsp;</TD>
</TR>
<TR></TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Mark E. Mosteller
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Mark E. Mosteller, CPA
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Vice President and Chief Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the
Securities and Exchange Commission and is not to be incorporated by reference into any filing of
the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934
(whether made before or after the date of the Form 10-Q), irrespective of any general incorporation
language contained in such filing.
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