According to SEC documents, IntraBiotics Pharmaceuticals, Inc. ("IntraBiotics" or the Company) focuses on developing and commercializing high-value anti-infectives and oncology therapeutics.

The original Complaint alleges that IntraBiotics and certain of its officers and directors issued materially false statements concerning the Company's drug iseganan. Specifically, Defendants failed to disclose: (i) that iseganan was not safe and well-tolerated at therapeutically relevant doses when administered to the oral cavity; (ii) that the drug caused a higher rate of ventilator - associated pneumonia ('VAP') and mortality as compared to placebo; (iii) that despite knowing and/or recklessly disregarding the aforementioned facts, the Defendants nevertheless raised capital through offerings of its common stock in order to portray to the market that iseganan was a viable marketable product that was on the 'fast track' to FDA approval; and (iv) that as a result of the above, the Defendants statements concerning iseganan were lacking in any reasonable basis.

The Complaint further alleges that on or around June 23, 2004, the Company announced that an independent data monitoring committee recommended to IntraBiotics that it discontinue its pivotal trial of iseganan for the prevention of VAP based on an interim analysis of the data. On this news, IntraBiotics fell $9.45 per share or 69%, to close at $4.23 per share.

Pursuant to the Order dated January 23, 2006, the Court grants in part and denies in part Defendants’ motion to dismiss as follows: (1) the Court grants Defendants’ motion to dismiss Plaintiffs’ first and second claims with leave to amend; and (2) the Court denies Defendants’ motion to dismiss Plaintiffs’ third and forth claims. Plaintiffs shall file any amended Complaint within thirty days of the date of this Order.

On February 22, 2006, the Plaintiffs filed a Second Consolidated Amended Complaint. On March 14, 2006, the Defendants filed a motion to dismiss the Second Consolidated Amended Complaint.

In orders dated August 1, 2006 and August 30, 2006, the court dismissed with prejudice all Plaintiffs' Complaints. On October 3, 2006, the Court entered the Judgment signed by U.S. District Judge Jeffrey S. White. Judgment was entered in favor of the Defendants and against Plaintiffs.

According to the Order dated August 30, 2006, on August 1, 2006, the Court granted Defendants’ motion to dismiss Plaintiffs’ third and fourth claims with prejudice and reserved ruling on Defendants’ motion to amend or certify for interlocutory appeal the Court’s prior order regarding Plaintiff’s first and second claims. The Court directed the parties to file supplemental briefing with respect to the first and second claims in accordance with the order issued on August 1, 2006, and informed Plaintiffs that the Court would dismiss their first and second claims with prejudice if they did not file a supplemental brief by August 18, 2006. Plaintiffs failed to file a supplemental brief. Accordingly, for the reasons stated in the order issued on August 1, 2006, the Court hereby dismisses Plaintiffs’ first and second claims with prejudice.