Melokinex™ is a preclinical candidate for the treatment of post operative ileus ('POI'), developed in China by Botanic Century (Beijing) Ltd ('BCCL'), a botanical drug development company in which Phynova has a 45% equity stake. POI is a form of bowel obstruction/hypomotility associated with surgery and/or the use of opiate painkillers that is widely seen after abdominal surgery and is an important cause of post-operative morbidity and delayed hospital discharge. BCCL’s candidate has shown promising efficacy in preclinical studies targeting increased bowel movement in conditions where the bowel motility has been impaired. BCCL has an IND to conduct clinical studies in China and a Phase IIa study is currently underway. The study aims to investigate the safety and efficacy of Melokinex™ and to establish an optimum dosing regime. Results of this study are expected in Q1 2010. Phynova is currently exploring the potential for Melokinex™ in markets outside China.