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SGX Pharmaceuticals Announces Financial Results for the Three and Six Months Ended June 30, 2008
Date:8/7/2008

. is a biotechnology company focused on the discovery, development and commercialization of novel, targeted therapeutics directed at addressing unmet medical needs in oncology. Our drug development programs target the MET receptor tyrosine kinase, an enzyme implicated in a broad array of cancers, and the BCR-ABL tyrosine kinase enzyme for the treatment of Chronic Myelogenous Leukemia, or CML. Our drug discovery activities are focused on a portfolio of other protein and enzyme targets that have been implicated in human cancers, including JAK2, RON, ALK, RAS and IKKe. More information on the pipeline and drug discovery platform can be found at http://www.sgxpharma.com and in the Company's various filings with the Securities and Exchange Commission.

Merger Agreement with Eli Lilly and Company

On July 8, 2008, SGX Pharmaceuticals, Inc. entered into an Agreement and Plan of Merger (the "Merger Agreement") with Eli Lilly and Company, an Indiana corporation ("Lilly"), and REM Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Lilly ("Merger Sub"). Pursuant to the Merger Agreement, Merger Sub will merge with and into SGX (the "Merger"), with SGX continuing as the surviving corporation and a wholly-owned subsidiary of Lilly. As a result of the Merger, each share of SGX common stock issued and outstanding immediately prior to the effective time of the Merger (other than shares held by Lilly or Merger Sub or by stockholders of SGX who have validly exercised their appraisal rights under Delaware law) will be converted into the right to receive $3.00 in cash, without interest.

Pursuant to the terms of the Merger Agreement and as permitted under the applicable SGX equity plans, all of SGX's unvested stock options will vest prior to the effective time of the Merger. Any issued and outstanding stock options with an exercise price per share greater than or equal to $3.00 that are not exe
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SOURCE SGX Pharmaceuticals, Inc.
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