<SUBMISSION>
<ACCESSION-NUMBER>0000950123-04-014750
<TYPE>S-3
<PUBLIC-DOCUMENT-COUNT>4
<FILING-DATE>20041214
<DATE-OF-FILING-DATE-CHANGE>20041214
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>REGENERON PHARMACEUTICALS INC
<CIK>0000872589
<ASSIGNED-SIC>2834
<IRS-NUMBER>133444607
<STATE-OF-INCORPORATION>NY
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>S-3
<ACT>33
<FILE-NUMBER>333-121225
<FILM-NUMBER>041200174
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>777 OLD SAW MILL RIVER RD
<CITY>TARRYTOWN
<STATE>NY
<ZIP>10591-6707
<PHONE>9143477000
</BUSINESS-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>S-3
<SEQUENCE>1
<FILENAME>y69426sv3.htm
<DESCRIPTION>REGENERON PHARMACEUTICALS, INC.
<TEXT>
<HTML>
<HEAD>
<TITLE>FORM S-3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">As filed with the Securities and Exchange
Commission on December&nbsp;14, 2004</FONT></B>
</DIV>

<DIV align="right">
<B><FONT size="2">Registration
Nos.&nbsp;333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B>
</DIV>

<DIV align="left">
<HR size="4" noshade color="#000000" style="margin-top: -5px">
</DIV>

<DIV align="left">
<HR size="1" noshade color="#000000" style="margin-top: -10px">
</DIV>

<P align="center">
<B><FONT size="4">SECURITIES AND EXCHANGE COMMISSION</FONT></B>

<DIV align="center">
<B>Washington,&nbsp;D.C. 20549</B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="center">
<B><FONT size="5">Form&nbsp;S-3</FONT></B>

<DIV align="center">
<B>REGISTRATION STATEMENT</B>
</DIV>

<DIV align="center">
<B>UNDER</B>
</DIV>

<DIV align="center">
<B>THE SECURITIES ACT OF 1933</B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="center">
<B><FONT size="6">Regeneron Pharmaceuticals, Inc.</FONT></B>

<DIV align="center">
<I><FONT size="2">(Exact Name of Registrant as Specified in Its
Charter)</FONT></I>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="57%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT size="2">New York</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <B><FONT size="2">13-3444607</FONT></B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I><FONT size="2">(State or other jurisdiction of<BR>
    incorporation or organization)</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <I><FONT size="2">(I.R.S. Employee<BR>
    identification number)</FONT></I></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="center">
<B><FONT size="2">777 Old Saw Mill River Road</FONT></B>

<DIV align="center">
<B><FONT size="2">Tarrytown, New York, 10591-6707</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(914)&nbsp;345-7400</FONT></B>
</DIV>

<DIV align="center">
<I><FONT size="2">(Address, Including Zip Code, and Telephone
Number, Including Area Code,</FONT></I>
</DIV>

<DIV align="center">
<I><FONT size="2">of Registrant&#146;s Principal Executive
Offices)</FONT></I>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="center">
<B><FONT size="2">Stuart A. Kolinski,&nbsp;Esq.</FONT></B>

<DIV align="center">
<B><FONT size="2">Vice President, General Counsel and
Secretary</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">Regeneron Pharmaceuticals, Inc.</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">777 Old Saw Mill River Road</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">Tarrytown, New York, 10591-6707</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(914)&nbsp;345-7400</FONT></B>
</DIV>

<DIV align="center">
<I><FONT size="2">(Name, Address, Including Zip Code, and
Telephone Number,</FONT></I>
</DIV>

<DIV align="center">
<I><FONT size="2">Including Area Code, of Agents for
Service)</FONT></I>
</DIV>

<P align="center">
<B><I><FONT size="2">With A Copy To:</FONT></I></B>

<P align="center">
<B><FONT size="2">Kent A. Coit,&nbsp;Esq.</FONT></B>

<DIV align="center">
<B><FONT size="2">Skadden, Arps, Slate, Meagher&nbsp;&#38; Flom
LLP</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">One Beacon Street</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">Boston, Massachusetts 02108</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(617)&nbsp;573-4800</FONT></B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;Approximate date of
commencement of proposed sale to the
public:</FONT></B><FONT size="2"> From time to time after this
Registration Statement becomes effective.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    <FONT size="2">If the only securities being registered on this
    Form are being offered pursuant to dividend or interest
    reinvestment plans, check the following
    box.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    <FONT size="2">If any of the securities being registered on this
    Form are to be offered on a delayed or continuous basis pursuant
    to Rule&nbsp;415 under the Securities Act of 1933, other than
    securities offered only in connection with dividend or interest
    reinvestment plans, check the following
    box.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#254;</FONT>
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    <FONT size="2">If this Form is filed to register additional
    securities for an offering pursuant to Rule&nbsp;462(b) under
    the Securities Act, please check the following box and list the
    Securities Act registration statement number of the earlier
    effective registration statement for the same
    offering.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    <FONT size="2">If this Form is a post-effective amendment filed
    pursuant to Rule&nbsp;462(c) under the Securities Act, check the
    following box and list the Securities Act registration statement
    number of the earlier effective registration statement for the
    same
    offering.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    <FONT size="2">If delivery of the prospectus is expected to be
    made pursuant to Rule&nbsp;434, please check the following
    box:&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
    </FONT></TD>
</TR>

</TABLE>

<P align="center">
<B><FONT size="2">CALCULATION OF REGISTRATION FEE</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="46%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="17%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Proposed Maximum</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Amount of</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Title of Each Class of</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Amount to be</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Aggregate</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Registration</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Securities to be Registered(1)</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Registered(1)</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Offering Price(1)(2)</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Fee</FONT></B></TD>
</TR>

<TR>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Common stock, par value $0.001 (including the
    associated rights to purchase Series&nbsp;A junior participating
    preferred stock)(3)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Preferred stock, par value $0.01
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Debt securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Warrants(4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="7" align="left"><HR size="1" noshade></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Total</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <B><FONT size="2">$200,000,000</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <B><FONT size="2">100%</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <B><FONT size="2">$23,540</FONT></B></TD>
</TR>

<TR>
    <TD colspan="7" align="left"><HR size="1" noshade></TD>

</TR>

<TR>
    <TD colspan="7" align="left"><HR size="1" noshade></TD>

</TR>

</TABLE>
</CENTER>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Pursuant to General Instruction&nbsp;II.D of
    Form&nbsp;S-3, the amount to be registered is not specified as
    to each class of securities. Subject to Rule&nbsp;462(b) under
    the Securities Act, the aggregate public offering price of the
    securities registered hereby will not exceed $200,000,000. This
    Registration Statement includes such indeterminate number of
    shares of common stock and preferred stock, such indeterminate
    number of warrants, and such indeterminate principal amount of
    debt securities as may from time to time be issued at
    indeterminate prices. Any securities registered hereunder may be
    sold separately or as units with other securities registered
    hereunder.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Estimated solely for the purpose of calculating
    the registration fee pursuant to Rule&nbsp;457(o) under the
    Securities Act and exclusive of accrued interest and dividends,
    if any.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The rights to purchase shares of our
    Series&nbsp;A junior participating preferred stock initially are
    attached to and trade with the shares of our common stock being
    registered hereby. The value attributed to such rights, if any,
    is reflected in the market price of our common stock.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes warrants to purchase common stock,
    warrants to purchase preferred stock, and warrants to purchase
    debt securities.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;<B>The registrant hereby
amends this registration statement on such date or dates as may
be necessary to delay its effective date until the registrant
shall file a further amendment which specifically states that
this registration statement shall thereafter become effective in
accordance with Section&nbsp;8(a) of the Securities Act or until
the registration statement shall become effective on such date
as the Securities and Exchange Commission (SEC), acting pursuant
to said Section&nbsp;8(a), may determine.</B>
</FONT>

<P align="left">
<HR size="1" noshade color="#000000" style="margin-top: -2px">

<DIV align="left">
<HR size="4" noshade color="#000000" style="margin-top: -10px">
</DIV>

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

<TABLE width="100%" border="1" cellpadding="5"><TR><TD>
<FONT size="2" color="#E8112D">The information in this
prospectus is not complete and may be changed. We may not sell
these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus
is not an offer to sell these securities, and we are not
soliciting offers to buy these securities in any state where the
offer or sale is not permitted.</FONT><FONT size="2"> <BR>

</FONT>
</TD></TR></TABLE>

<P align="center">
<B><FONT size="2" color="#E8112D">SUBJECT TO COMPLETION, DATED
DECEMBER&nbsp;14, 2004</FONT></B>

<P align="left">
<B><FONT size="2">PRELIMINARY PROSPECTUS</FONT></B>

<P align="center">
<B><FONT size="4">$200,000,000</FONT></B>

<P align="center">
<B><FONT size="6">Regeneron Pharmaceuticals, Inc.</FONT></B>

<P align="center">
<B><FONT size="4">Common Stock</FONT></B>

<DIV align="center">
<B><FONT size="4">Preferred Stock</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="4">Debt Securities</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="4">Warrants</FONT></B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REGENERON
PHARMACEUTICALS, INC. may sell from time to time in one or more
offerings, together or separately:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">common stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">preferred stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">debt securities;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">warrants to purchase debt securities, common
    stock or preferred stock.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The common stock of
Regeneron Pharmaceuticals, Inc. is listed on the Nasdaq National
Market under the symbol &#147;REGN.&#148; Our principal
executive offices are located at 777 Old Saw Mill River Road,
Tarrytown, NY 10591-6707, telephone (914)&nbsp;345-7400.
</FONT>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Investing in our
securities involves risks that are described in the &#147;Risk
Factors&#148; section beginning on page&nbsp;2 of this
prospectus.</B>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>We urge you to
read carefully this prospectus and the accompanying prospectus
supplement, which will describe the specific terms of the
securities being offered to you, before you make your investment
decision.</I>
</FONT>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither the
Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or
determined if this prospectus or the accompanying prospectus
supplement is truthful or complete. Any representation to the
contrary is a criminal offense.</B>
</FONT>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>This prospectus
may not be used to sell securities unless accompanied by a
prospectus supplement.</B>
</FONT>

<P align="center">
<FONT size="2">The date of this prospectus is December&nbsp;14,
2004.
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV align="left">

</DIV>

<DIV align="left">
<!-- TOC -->
</DIV>

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

<P align="center">
<B><FONT size="2">TABLE OF CONTENTS</FONT></B>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="90%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#101'>ABOUT THIS PROSPECTUS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">i</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#102'>WHERE YOU CAN FIND MORE
    INFORMATION</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">i</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#103'>SPECIAL NOTE&nbsp;REGARDING
    FORWARD-LOOKING STATEMENTS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">ii</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#104'>REGENERON PHARMACEUTICALS,
    INC</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#105'>RISK FACTORS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#106'>USE OF PROCEEDS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#107'>RATIO OF EARNINGS TO
    COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#108'>DESCRIPTION OF SECURITIES</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#109'>Description of Capital
    Stock</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#110'>Description of Debt
    Securities</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#111'>Description of Warrants</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#112'>PLAN OF DISTRIBUTION</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#113'>LEGAL MATTERS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#114'>EXPERTS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y69426exv12w1.txt">STATEMENT RE: COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y69426exv23w1.txt">CONSENT OF PRICEWATERHOUSECOOPERS LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y69426exv23w2.txt">CONSENT OF ERNST & YOUNG LLP</A></FONT></TD></TR>
</TABLE>
</CENTER>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In this prospectus, &#147;Regeneron,&#148;
&#147;our company,&#148; &#147;we,&#148; &#147;us,&#148;
&#147;the issuer,&#148; &#147;the registrant,&#148; and
&#147;our&#148; refer to Regeneron Pharmaceuticals, Inc.,
references to our &#147;common stock&#148; refer to shares of
our common stock, par value $0.001&nbsp;per share, and shall
include the rights attached to such common stock in accordance
with our shareholder rights plan, references to our Class&nbsp;A
stock refer to our Class&nbsp;A stock, par value $0.001&nbsp;per
share, and shall include the rights attached to such
Class&nbsp;A stock in accordance with our shareholder rights
plan, and references to our &#147;common shares&#148; shall
mean, collectively, shares of common stock and shares of
Class&nbsp;A stock.
</FONT>

<DIV align="left">
<A name='101'></A>
</DIV>

<!-- link1 "ABOUT THIS PROSPECTUS" -->

<P align="center">
<B><FONT size="2">ABOUT THIS PROSPECTUS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus is part of a registration
statement that we filed with the Securities and Exchange
Commission using a &#147;shelf&#148; registration process. Under
this shelf process, we may sell any combination of the
securities described in this prospectus in one or more offerings
up to a total dollar amount of $200,000,000. This prospectus
provides you with a general description of the securities we may
offer. Each time we sell securities, we will provide a
prospectus supplement that will contain specific information
about the terms of that offering. The prospectus supplement may
also add, update or change information contained in this
prospectus. You should read both this prospectus and any
prospectus supplement together with additional information
described under the heading &#147;Where You Can Find More
Information.&#148;
</FONT>

<DIV align="left">
<A name='102'></A>
</DIV>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->

<P align="center">
<B><FONT size="2">WHERE YOU CAN FIND MORE INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We file reports, proxy statements, and other
information with the SEC. The public may read and copy any
materials filed by us at the SEC&#146;s Public Reference Room at
450&nbsp;Fifth Street, N.W., Washington,&nbsp;D.C. 20549 or on
the Internet site maintained by the SEC at http://www.sec.gov.
Please call the SEC at 1-800-SEC-0330 for further information on
the Public Reference Room. Our common stock is listed on the
Nasdaq National Market, and these reports, proxy statements, and
other information are also available for inspection at the
offices of the Nasdaq Stock Market, 1735&nbsp;K&nbsp;Street,
N.W., Washington,&nbsp;D.C. 20006-1504.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus is part of a registration
statement filed by us with the SEC. The full registration
statement can be obtained from the SEC, as indicated above, or
from us.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The SEC allows us to &#147;incorporate by
reference&#148; the information we file with the SEC. This
permits us to disclose important information to you by referring
to these filed documents. Any information referred to in
</FONT>

<P align="center">

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

<DIV align="left">
<FONT size="2">this way is considered part of this prospectus.
We incorporate by reference the following documents that have
been filed with the SEC:
</FONT>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our amended Annual Report on Form&nbsp;10-K/A for
    the year ended December&nbsp;31, 2003 filed with the SEC on
    December&nbsp;14, 2004;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our Quarterly Reports on Form&nbsp;10-Q for the
    quarter ended March&nbsp;31, 2004 filed with the SEC on
    May&nbsp;6, 2004, for the quarter ended June&nbsp;30, 2004 filed
    with the SEC on August&nbsp;5, 2004, and for the quarter ended
    September&nbsp;30, 2004 filed with the SEC on November&nbsp;8,
    2004;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our Current Reports on Form&nbsp;8-K filed with
    the SEC on April&nbsp;27, 2004, April&nbsp;28, 2004,
    July&nbsp;27, 2004 (as to Item&nbsp;5 only), November&nbsp;12,
    2004, and November&nbsp;17, 2004.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Any information in any of the foregoing documents
will automatically be deemed to be modified or superceded to the
extent that information in this prospectus or in a later filed
document that is incorporated or deemed to be incorporated
herein by reference modifies or replaces such information.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We also incorporate by reference any future
filings (other than current reports furnished under
Item&nbsp;2.02 or Item&nbsp;7.01 of Form&nbsp;8-K and exhibits
filed on such form that are related to such items) made with the
SEC pursuant to Sections&nbsp;13(a), 13(c), 14 or 15(d) of the
Securities Exchange Act of 1934, as amended (the &#147;Exchange
Act&#148;), until we file a post-effective amendment which
indicates the termination of the offering of the securities made
by this prospectus. Information in such future filings updates
and supplements the information provided in this prospectus. Any
statements in any such future filings will automatically be
deemed to modify and supercede any information in any document
we previously filed with the SEC that is incorporated or deemed
to be incorporated herein by reference to the extent that
statements in the later filed document modify or replace such
earlier statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will provide to each person, including any
beneficial owner, to whom a prospectus is delivered, without
charge upon written or oral request, a copy of any or all of the
documents that are incorporated by reference into this
prospectus, other than exhibits which are specifically
incorporated by reference into such documents. Requests should
be directed to the Investor Relations Department at Regeneron
Pharmaceuticals, Inc., 777 Old Saw Mill River Road, Tarrytown,
New York 10591 or by calling us at 914-345-7400.
</FONT>

<P align="left">
<A name='103'></A>

<!-- link1 "SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS" -->

<P align="center">
<B><FONT size="2">SPECIAL NOTE&nbsp;REGARDING FORWARD-LOOKING
STATEMENTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus and the documents incorporated by
reference herein include forward-looking statements within the
meaning of Section&nbsp;27A of the Securities Act of 1933, as
amended (the &#147;Securities Act&#148;) and Section&nbsp;21E of
the Exchange Act. Some of the forward-looking statements can be
identified by the use of forward-looking words including, but
not limited to, &#147;believes,&#148; &#147;expects,&#148;
&#147;may,&#148; &#147;will,&#148; &#147;should,&#148;
&#147;seeks,&#148; &#147;approximately,&#148;
&#147;intends,&#148; &#147;plans,&#148; &#147;estimates&#148; or
&#147;anticipates&#148; or the negative of those words or other
comparable terminology. Forward-looking statements involve
inherent risks and uncertainties. A number of important factors
could cause actual results to differ materially from those in
the forward-looking statements. These factors include, but are
not limited to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our anticipated business strategies;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ongoing and anticipated clinical trials;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our intention to introduce new product candidates;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to conduct clinical trials and obtain
    regulatory approval of our product candidates;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our relationships with collaborators;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">anticipated trends in our businesses;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">future capital expenditures.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You should not place undue reliance on any such
forward-looking statements. Except to the extent required by
federal securities laws, we do not intend to update
forward-looking information or to release the results of any
future revisions we may make to forward-looking statements to
reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
</FONT>

<P align="center"><FONT size="2">ii
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='104'></A>
</DIV>

<!-- link1 "REGENERON PHARMACEUTICALS, INC." -->

<P align="center">
<B><FONT size="2">REGENERON PHARMACEUTICALS, INC.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Regeneron Pharmaceuticals, Inc. is a
biopharmaceutical company that discovers, develops, and intends
to commercialize pharmaceutical products for the treatment of
serious medical conditions. Our clinical and preclinical
pipeline includes product candidates for the treatment of
cancer, diseases of the eye, rheumatoid arthritis and other
inflammatory conditions, allergies, asthma, obesity, and other
diseases and disorders. Developing and commercializing new
medicines entails significant risk and expense. Since inception
we have not generated any sales or profits from the
commercialization of any of our product candidates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our clinical candidates, as of September&nbsp;30,
2004, include the VEGF Trap, interleukin-1 Trap (IL-1 Trap),
interleukin-4/interleukin-13 Trap (IL-4/13 Trap), and
AXOKINE&#174;. The VEGF Trap is a protein-based product
candidate designed to bind Vascular Endothelial Growth Factor
(called VEGF, also known as Vascular Permeability Factor or VPF)
and the related Placental Growth Factor (called PlGF), and
prevent their interaction with cell surface receptors. VEGF (and
to a less validated degree, PlGF) is required for the growth of
new blood vessels that are needed for tumors to grow and is a
potent regulator of vascular permeability and leakage. The IL-1
Trap is a protein-based product candidate designed to bind the
interleukin-1 (called IL-1) cytokine and prevent its interaction
with cell surface receptors. IL-1 is thought to play an
important role in rheumatoid arthritis and other inflammatory
diseases. The IL-4/13 Trap is a protein-based product candidate
designed to bind both the interleukin-4 and interleukin-13
(called IL-4 and IL-13) cytokines and prevent their interaction
with cell surface receptors. IL-4 and IL-13 are thought to play
a major role in diseases such as asthma, allergic disorders, and
other inflammatory diseases. AXOKINE is a protein-based product
candidate designed to act on the brain region regulating
appetite and energy expenditure. AXOKINE is being developed for
the treatment of obesity.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our core business strategy is to combine our
strong foundation in basic scientific research and
discovery-enabling technology with our manufacturing and
clinical development capabilities to build a successful,
integrated biopharmaceutical company. Our efforts have yielded a
diverse and growing pipeline of product candidates that have the
potential to address a variety of serious medical conditions. We
believe that our ability to develop product candidates is
enhanced by the application of our technology platforms. These
platforms are designed to discover specific genes of therapeutic
interest for a particular disease or cell type and validate
targets through high-throughput production of mammalian models.
We continue to invest in the development of enabling
technologies to assist in our efforts to identify, develop, and
commercialize new product candidates. Our web address is
www.regeneron.com. You should not consider the information on
our website to be a part of this prospectus.
</FONT>

<P align="center"><FONT size="2">1
</FONT>

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

<DIV align="left">
<A name='105'></A>
</DIV>

<!-- link1 "RISK FACTORS" -->

<P align="center">
<B><FONT size="2">RISK FACTORS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We operate in an environment that involves a
number of significant risks and uncertainties. We caution you to
read the following risk factors, which have affected, and/or in
the future could affect, our business, operating results,
financial condition, and cash flows. The risks described below
include forward-looking statements, and our actual results may
differ substantially from those discussed in these
forward-looking statements. Additional risks and uncertainties
not currently known to us or that we currently deem immaterial
may also impair our business operations. Furthermore, additional
risks and uncertainties are included in our most recent annual
and quarterly report filings with the SEC and other documents
incorporated herein by reference and should be considered by our
investors.
</FONT>

<P align="left">
<B><FONT size="2">Risks Related to Our Financial Results and
Need for Additional Financing</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We have had a history of operating losses
    and we may never achieve profitability. If we continue to incur
    operating losses, we may be unable to continue our
    operations.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">From inception on January&nbsp;8, 1988 through
September&nbsp;30, 2004, we had a cumulative loss of
$492.6&nbsp;million. If we continue to incur operating losses
and fail to become a profitable company, we may be unable to
continue our operations. We have no products that are available
for sale and do not know when we will have products available
for sale, if ever. In the absence of revenue from the sale of
products or other sources, the amount, timing, nature or source
of which cannot be predicted, our losses will continue as we
conduct our research and development activities. We currently
receive contract manufacturing revenue from our agreement with
Merck&nbsp;&#38; Co., Inc. and contract research and development
revenue from our agreements with The Procter&nbsp;&#38; Gamble
Company and Serono International S.A. All three of these
agreements are scheduled to expire, unless extended by mutual
agreement, before the end of 2005. We can provide no assurance
that all or any of these agreements will be extended. Failure to
extend these agreements may negatively impact our business,
financial condition or results of operations.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We will need additional funding in the
    future, which may not be available to us, and which may force us
    to delay, reduce or eliminate our product development programs
    or commercialization efforts.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will need to expend substantial resources for
research and development, including costs associated with
clinical testing of our product candidates. We believe our
existing capital resources will enable us to meet operating
needs through at least the end of 2006; however, our projected
revenue may decrease or our expenses may increase and that would
lead to our capital being consumed significantly before such
time. We will likely require additional financing in the future
and we may not be able to raise such additional funds. If we are
able to obtain additional financing through the sale of equity
or convertible debt securities, such sales may be dilutive to
our shareholders. Debt financing arrangements may require us to
pledge certain assets or enter into covenants that would
restrict certain business activities or our ability to incur
further indebtedness and may contain other terms that are not
favorable to our shareholders. If we are unable to raise
sufficient funds to complete the development of our product
candidates, we may face delay, reduction or elimination of our
research and development programs or preclinical or clinical
trials, in which case our business, financial condition or
results of operations may be materially harmed.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We have a significant amount of debt and
    may have insufficient cash to satisfy our debt service and
    repayment obligations. In addition, the amount of our debt could
    impede our operations and flexibility.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have a significant amount of convertible debt
and semi-annual interest payment obligations. This debt, unless
converted to shares of our common stock, will mature in October
2008. We may be unable to generate sufficient cash flow or
otherwise obtain funds necessary to make required payments on
our debt. Even if we are able to meet our debt service
obligations, the amount of debt we already have could hurt our
ability to obtain any necessary financing in the future for
working capital, capital expenditures, debt service requirements
or other purposes. In addition, our debt obligations could
require us to use a substantial portion of cash to pay principal
and interest on our debt, instead of applying those funds to
other purposes, such as research and development, working
capital, and capital expenditures.
</FONT>

<P align="center"><FONT size="2">2
</FONT>

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

<P align="left">
<B><FONT size="2">Risks Related to Development of Our Product
Candidates</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Successful development of any of our
    product candidates is highly uncertain.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Only a small minority of all research and
development programs ultimately result in commercially
successful drugs. We have never developed a drug that has been
approved for marketing and sale, and we may never succeed in
developing an approved drug. Even if clinical trials demonstrate
safety and effectiveness of any of our product candidates for a
specific disease and the necessary regulatory approvals are
obtained, the commercial success of any of our product
candidates will depend upon their acceptance by patients, the
medical community, and third-party payors and on our and our
partners&#146; ability to successfully manufacture and
commercialize our product candidates. Our product candidates are
delivered either by intravenous or subcutaneous injections,
which are generally less well received by patients than tablet
or capsule delivery. If our products are not successfully
commercialized, we will not be able to recover the significant
investment we have made in developing such products and our
business would be severely harmed.
</FONT>

<DIV>&nbsp;</DIV>

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    <TD width="3%"></TD>
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    <TD></TD>
    <TD>
    <B><I><FONT size="2">Clinical trials required for our product
    candidates are expensive and time-consuming, and their outcome
    is highly uncertain. If any of our drug trials are delayed or
    achieve unfavorable results, we will have to delay or may be
    unable to obtain regulatory approval for our product
    candidates.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We must conduct extensive testing of our product
candidates before we can obtain regulatory approval to market
and sell them. We need to conduct both preclinical animal
testing and human clinical trials. Conducting these trials is a
lengthy, time-consuming, and expensive process. These tests and
trials may not achieve favorable results for many reasons,
including, among others, failure of the product candidate to
demonstrate safety or efficacy, the development of serious or
life-threatening adverse events (or side effects) caused by or
connected with exposure to the product candidate, difficulty in
enrolling and maintaining subjects in the clinical trial, lack
of sufficient supplies of the product candidate, and the failure
of clinical investigators, trial monitors and other consultants,
or trial subjects to comply with the trial plan or protocol. A
clinical trial may also fail because it did not include a
sufficient number of patients to detect the endpoint being
measured or reach statistical significance. For example, the
trials studying the maintenance of weight loss following
short-term treatment regimens with AXOKINE did not enroll a
sufficient number of patients to detect statistically
significant differences between patients treated with AXOKINE
and those taking placebo. These trials were designed before we
had access to the data from the completed pivotal phase&nbsp;3
AXOKINE trial, which demonstrated that the magnitude of the
average difference in weight loss observed between all
AXOKINE-treated subjects and those taking placebo was small.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will need to reevaluate any drug candidate
that does not test favorably and either conduct new trials,
which are expensive and time consuming, or abandon the drug
development program. Even if we obtain positive results from
preclinical or clinical trials, we may not achieve the same
success in future trials. Many companies in the
biopharmaceutical industry, including us, have suffered
significant setbacks in clinical trials, even after promising
results have been obtained in earlier trials. The failure of
clinical trials to demonstrate safety and effectiveness for our
desired indications could harm the development of the product
candidate, and our business, financial condition, and results of
operations may be materially harmed.
</FONT>

<DIV>&nbsp;</DIV>

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    <TD></TD>
    <TD>
    <B><I><FONT size="2">The development of serious or
    life-threatening side effects with any of our product candidates
    would lead to delay or discontinuation of development, which
    could severely harm our business.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the conduct of clinical trials, patients
report changes in their health, including illnesses, injuries,
and discomforts, to their study doctor. Often, it is not
possible to determine whether or not the drug candidate being
studied caused these conditions. Various illnesses, injuries,
and discomforts have been reported from time-to-time during
clinical trials of our product candidates. Although our current
drug candidates appeared to be generally well tolerated in
clinical trials conducted to date, it is possible as we test any
of them in larger, longer, and more extensive clinical programs,
illnesses, injuries, and discomforts that were observed in
earlier trials, as well as conditions that did not occur or went
undetected in smaller previous trials, will be reported by
patients. If additional clinical experience indicates that any
of our product candidates has many side effects or
</FONT>

<P align="center"><FONT size="2">3
</FONT>

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<DIV align="left">
<FONT size="2">causes serious or life-threatening side effects,
the development of the product candidate may fail or be delayed,
which would severely harm our business.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our VEGF Trap is being studied for the potential
treatment of certain types of cancer and diseases of the eye.
There are many potential safety concerns associated with
significant blockade of vascular endothelial growth factor, or
VEGF. These safety concerns may limit our ability to
successfully develop the VEGF Trap.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Genentech, Inc. and Eyetech Pharmaceuticals, Inc.
are developing VEGF inhibiting molecules for certain diseases of
the eye that will be delivered by direct administration to the
eye. We plan to study the VEGF Trap for the potential treatment
of certain diseases of the eye through intravitreal injections
in the eye and are conducting trials of the VEGF Trap utilizing
systemic administration through intravenous infusions or
subcutaneous injections. Although we believe that there are
potential clinical advantages to systemic administration over
injections directly in the eye (including patient comfort and
acceptance), there are unique potential risks to patients
associated with the systemic blockade of VEGF by intravenous
infusions or subcutaneous injections that could limit or end the
VEGF Trap development program. These risks, based on the
clinical and preclinical experience of systemically delivered
VEGF inhibitors, include bleeding, hypertension, and
proteinuria. Certain of these serious side effects and other
serious side effects have been reported in our VEGF Trap
studies. In addition, patients given infusions of any protein,
including the VEGF Trap, may develop severe hypersensitivity
reactions, referred to as infusion reactions. There may be
additional complications or side effects that could harm the
development of the VEGF Trap for either the treatment of cancer
or diseases of the eye.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD></TD>
    <TD>
    <B><I><FONT size="2">Our product candidates in development are
    recombinant proteins that could cause an immune response,
    resulting in the creation of harmful or neutralizing antibodies
    against the therapeutic protein.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to the safety, efficacy,
manufacturing, and regulatory hurdles faced by our product
candidates, the administration of recombinant proteins
frequently causes an immune response, resulting in the creation
of antibodies against the therapeutic protein. The antibodies
can have no effect or can totally neutralize the effectiveness
of the protein, or require that higher doses be used to obtain a
therapeutic effect. In some cases, the antibody can cross react
with the patient&#146;s own proteins, resulting in an
&#147;auto-immune&#148; type disease. Whether antibodies will be
created can often not be predicted from preclinical or clinical
experiments, and their appearance is often delayed, so that
there can be no assurance that neutralizing antibodies will not
be created at a later date&nbsp;&#151; in some cases even after
pivotal clinical trials have been completed. Approximately
two-thirds of the subjects who received AXOKINE in the completed
phase&nbsp;3 study developed neutralizing antibodies. In
addition, subjects who received the IL-1 Trap in clinical trials
have developed antibodies. It is possible that as we test the
VEGF Trap in different patient populations and larger clinical
trials, subjects given the VEGF Trap will develop antibodies to
the product candidate.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD></TD>
    <TD>
    <B><I><FONT size="2">A previous phase&nbsp;3 study evaluating
    AXOKINE demonstrated modest average weight loss over a 12-month
    period. In addition, a completed phase&nbsp;2 study evaluating
    the IL-1 Trap in patients with rheumatoid arthritis failed to
    achieve its primary endpoint.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In March 2003, we reported data from the 12-month
treatment period of our initial phase&nbsp;3 pivotal trial of
AXOKINE. Although the phase&nbsp;3 study met its primary
endpoints and individuals achieved a medically meaningful weight
loss, the average weight loss was small and limited by the
development of antibodies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In October 2003, we reported results from the
first phase&nbsp;2 trial of our IL-1 Trap in rheumatoid
arthritis. We plan to conduct a phase&nbsp;2b study of the IL-1
Trap in a larger patient population, testing higher doses than
were tested in the previous phase&nbsp;2 trial for a longer
period of time. We plan to study higher doses of the IL-1 Trap
through subcutaneous injections and intravenous delivery.
However, higher doses may not lead to better results than were
demonstrated in the previous phase&nbsp;2 trial. In addition,
safety or tolerability concerns may arise which limit our
ability to deliver higher doses of the IL-1 Trap to patients.
The dose levels that will be tested are substantially higher
than the dose levels of other biological therapeutics currently
approved for the treatment of rheumatoid arthritis. Either
approach may affect the safety and/or tolerability of the IL-1
Trap, which may limit its commercial potential if the product
candidate is ever approved for marketing and sale.
</FONT>

<P align="center"><FONT size="2">4
</FONT>

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<P align="left">
<B><FONT size="2">Regulatory and Litigation Risks</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="3%"></TD>
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    <TD></TD>
    <TD>
    <B><I><FONT size="2">If we do not obtain regulatory approval for
    our product candidates, we will not be able to market or sell
    them.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We cannot sell or market products without
regulatory approval. If we do not obtain and maintain regulatory
approval for our product candidates, the value of our company
and our results of operations will be harmed. In the United
States, we must obtain and maintain approval from the United
States Food and Drug Administration (FDA)&nbsp;for each drug we
intend to sell. Obtaining FDA approval is typically a lengthy
and expensive process, and approval is highly uncertain. Foreign
governments also regulate drugs distributed in their country and
approval in any country is likely to be a lengthy and expensive
process, and approval is highly uncertain. None of our product
candidates has ever received regulatory approval to be marketed
and sold in the United States or any other country. We may never
receive regulatory approval for any of our product candidates.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
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</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">If the testing or use of our products harms
    people, we could be subject to costly and damaging product
    liability claims. We could also face costly and damaging claims
    arising from employment law, securities law, environmental law
    or other applicable laws governing our operations.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The testing, manufacturing, marketing, and sale
of drugs for use in people expose us to product liability risk.
We are currently involved in a product liability lawsuit brought
by a subject who participated in a clinical trial of one of our
drug candidates. Any informed consent or waivers obtained from
people who sign up for our clinical trials may not protect us
from liability or the cost of litigation. Our product liability
insurance may not cover all potential liabilities or may not
completely cover any liability arising from any such litigation.
Moreover, we may not have access to liability insurance or be
able to maintain our insurance on acceptable terms.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In May 2003, securities class action lawsuits
were commenced against us and certain of our officers and
directors in the United States District Court for the Southern
District of New York. A consolidated amended class action
complaint was filed in October 2003. The complaint, which
purports to be brought on behalf of a class consisting of
investors in our publicly traded securities between
March&nbsp;28, 2000 and March&nbsp;30, 2003, alleges that the
defendants misstated or omitted material information concerning
the safety and efficacy of AXOKINE, in violation of
Sections&nbsp;10(b) and 20(a) of the Securities and Exchange Act
of 1934 and Rule&nbsp;10b-5 promulgated thereunder. Damages are
sought in an unspecified amount. We have not established a
reserve for damages because we do not believe that a loss is
probable. However, if the outcome of the litigation is adverse
to us, we could be subject to significant liability, which could
exceed our insurance coverage.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="3%"></TD>
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</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Our operations may involve hazardous
    materials and are subject to environmental, health, and safety
    laws and regulations. We may incur substantial liability arising
    from our activities involving the use of hazardous
    materials.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a biopharmaceutical company with significant
manufacturing operations, we are subject to extensive
environmental, health, and safety laws and regulations,
including those governing the use of hazardous materials. Our
research and development and manufacturing activities involve
the controlled use of chemicals, viruses, radioactive compounds,
and other hazardous materials. The cost of compliance with
environmental, health, and safety regulations is substantial. If
an accident involving these materials or an environmental
discharge were to occur, we could be held liable for any
resulting damages, or face regulatory actions, which could
exceed our resources or insurance coverage.
</FONT>

<P align="center"><FONT size="2">5
</FONT>

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<P align="left">
<B><FONT size="2">Risks Related to Our Dependence on Third
Parties</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD></TD>
    <TD>
    <B><I><FONT size="2">On February&nbsp;27, 2004, Novartis Pharma
    AG provided notice to us that they would not participate in the
    continued development and commercialization of the IL-1 Trap
    under our collaboration agreement. This may harm our ability to
    develop and commercialize the IL-1 Trap.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We relied heavily on Novartis to provide their
expertise, resources, funding, manufacturing capacity, clinical
expertise, and commercial infrastructure to support the IL-1
Trap program. Novartis&#146; decision to withdraw from
participating in the development and commercialization of the
IL-1 Trap may delay or disrupt the IL-1 Trap program. We do not
have the resources and skills to replace those of Novartis,
which could result in significant delays in the development and
potential commercialization of the IL-1 Trap. In addition, we
will have to fund the development and commercialization of the
IL-1 Trap without Novartis&#146; long-term commitment, which
will require substantially greater expenditures on our part.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="3%"></TD>
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</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">If our collaboration with Aventis
    Pharmaceuticals, Inc. for the VEGF Trap is terminated, our
    business operations and our ability to develop, manufacture, and
    commercialize the VEGF Trap in the time expected, or at all,
    would be harmed.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We rely heavily on Aventis to assist with the
development of the VEGF Trap. If the VEGF Trap program
continues, we will rely on Aventis to assist with funding the
VEGF Trap program, providing commercial manufacturing capacity,
enrolling and monitoring clinical trials, obtaining regulatory
approval, particularly outside the United States, and providing
sales and marketing support. While we cannot assure you that the
VEGF Trap will ever be successfully developed and
commercialized, if Aventis does not perform its obligations in a
timely manner, or at all, our ability to develop, manufacture,
and commercialize the VEGF Trap will be significantly adversely
affected. Aventis has the right to terminate its collaboration
agreement with us at any time. If Aventis were to terminate its
collaboration agreement with us, we might not have the resources
or skills to replace those of our partner, which could cause
significant delays in the development and/or manufacture of the
VEGF Trap and result in substantial additional costs to us. We
have no sales, marketing or distribution capabilities and would
have to develop or outsource these capabilities. Termination of
the Aventis collaboration agreement would create new and
additional risks to the successful development of the VEGF Trap.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Sanofi-Synthelabo recently acquired Aventis,
forming the sanofi-aventis Group. At present, it is unclear what
impact, if any, this business combination will have on the VEGF
Trap collaboration, including the possibility of a termination
of the collaboration agreement and a delay in, or disruption to,
the VEGF Trap development program.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="3%"></TD>
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</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Our collaborators and service providers may
    fail to perform adequately in their efforts to support the
    development, manufacture, and commercialization of our drug
    candidates.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We depend upon third-party collaborators,
including Aventis and service providers such as clinical
research organizations, outside testing laboratories, clinical
investigator sites, and third party manufacturers and product
packagers and labelers, to assist us in the development of our
product candidates. If any of our existing collaborators or
service providers breaches or terminates its agreement with us
or does not perform its development or manufacturing services
under an agreement in a timely manner or at all, we would
experience additional costs, delays, and difficulties in the
development or ultimate commercialization of our product
candidates.
</FONT>

<P align="left">
<B><FONT size="2">Risks Related to the Manufacture of Our
Product Candidates</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We have limited manufacturing capacity,
    which could inhibit our ability to successfully develop or
    commercialize our drugs.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Before approving a new drug or biologic product,
the FDA requires that the facilities at which the product will
be manufactured be in compliance with current good manufacturing
practices, or cGMP requirements. Manufacturing product
candidates in compliance with these regulatory requirements is
complex, time-
</FONT>

<P align="center"><FONT size="2">6
</FONT>

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<FONT size="2">consuming, and expensive. To be successful, our
products must be manufactured for development, following
approval, in commercial quantities, in compliance with
regulatory requirements, and at competitive costs. If we or any
of our product collaborators or third-party manufacturers,
fillers or labelers are unable to maintain regulatory
compliance, the FDA can impose regulatory sanctions, including,
among other things, refusal to approve a pending application for
a new drug or biologic product, or revocation of a pre-existing
approval. As a result, our business, financial condition, and
results of operations may be materially harmed.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our manufacturing facility is likely to be
inadequate to produce sufficient quantities of product for
commercial sale. We intend to rely on our corporate
collaborators, as well as contract manufacturers, to produce the
large quantities of drug material needed for commercialization
of our products. We rely entirely on third party manufacturers
for filling and finishing services. We will have to depend on
these manufacturers to deliver material on a timely basis and to
comply with regulatory requirements. If we are unable to supply
sufficient material on acceptable terms, or if we should
encounter delays or difficulties in our relationships with our
corporate collaborators or contract manufacturers, our business,
financial condition, and results of operations may be materially
harmed.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may expand our own manufacturing capacity to
support commercial production of active pharmaceutical
ingredients, or API, for our product candidates. This will
require substantial additional funds, and we will need to hire
and train significant numbers of employees and managerial
personnel to staff our facility. Start-up costs can be large and
scale-up entails significant risks related to process
development and manufacturing yields. We may be unable to
develop manufacturing facilities that are sufficient to produce
drug material for clinical trials or commercial use. In
addition, we may be unable to secure adequate filling and
finishing services to support our products. As a result, our
business, financial condition, and results of operations may be
materially harmed.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may be unable to obtain key raw materials and
supplies for the manufacture of our product candidates. In
addition, we may face difficulties in developing or acquiring
production technology and managerial personnel to manufacture
sufficient quantities of our product candidates at reasonable
costs and in compliance with applicable quality assurance and
environmental regulations and governmental permitting
requirements.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
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</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">If any of our clinical programs are
    discontinued, we may face costs related to the unused capacity
    at our manufacturing facilities.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We maintain an 8,000&nbsp;square foot
manufacturing facility in Tarrytown, New York and have
large-scale manufacturing operations in Rensselaer, New York.
Under a long-term manufacturing agreement with Merck, which
expires in October 2005 unless extended by mutual agreement, we
produce an intermediate for a Merck pediatric vaccine at our
facility in Rensselaer, New York. We also use our facilities to
produce API for our own clinical and preclinical candidates. If
we no longer use our facilities to manufacture the Merck
intermediate or clinical candidates are discontinued, we would
have to absorb overhead costs and inefficiencies.
</FONT>

<DIV>&nbsp;</DIV>

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<TR>
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</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Certain of our raw materials are
    single-sourced from third parties; third-party supply failures
    could adversely affect our ability to supply our
    products.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain raw materials necessary for manufacturing
and formulation of our product candidates are provided by
single-source unaffiliated third-party suppliers. We would be
unable to obtain these raw materials for an indeterminate period
of time if these third-party single-source suppliers were to
cease or interrupt production or otherwise fail to supply these
materials or products to us for any reason, including due to
regulatory requirements or action, due to adverse financial
developments at or affecting the supplier or due to labor
shortages or disputes. This, in turn, could materially and
adversely affect our ability to manufacture our product
candidates for use in clinical trials, which could materially
and adversely affect our operating results.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Also, certain of the raw materials required in
the manufacturing and the formulation of our clinical candidates
may be derived from biological sources, including mammalian
tissues, bovine serum, and human serum albumin. There are
certain European regulatory restrictions on using these
biological source materials.
</FONT>

<P align="center"><FONT size="2">7
</FONT>

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<FONT size="2">If we are required to substitute these sources to
comply with European regulatory requirements, our clinical
development activities may be delayed or interrupted.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Risks Related to Commercialization of
Products</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
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</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">If we are unable to establish sales,
    marketing, and distribution capabilities, or enter into
    agreements with third parties to do so, we will be unable to
    successfully market and sell future products.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have no sales or distribution personnel or
capabilities and have only a small staff with marketing
capabilities. If we are unable to obtain those capabilities,
either by developing our own organizations or entering into
agreements with service providers, we will not be able to
successfully sell any products that we may bring to market in
the future. In that event, we will not be able to generate
significant revenue, even if our product candidates are
approved. We cannot guarantee that we will be able to hire the
qualified sales and marketing personnel we need or that we will
be able to enter into marketing or distribution agreements with
third-party providers on acceptable terms, if at all. Under the
terms of our collaboration agreement with Aventis, we currently
rely on Aventis for sales, marketing, and distribution of the
VEGF Trap, should it be approved in the future by regulatory
authorities for marketing. We will have to rely on a third party
or devote significant resources to develop our own sales,
marketing, and distribution capabilities for our other product
candidates, and we may be unsuccessful in developing our own
sales, marketing, and distribution organization.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We may be unable to formulate or
    manufacture our product candidates in a way that is suitable for
    clinical or commercial use.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Changes in product formulations and manufacturing
processes may be required as product candidates progress in
clinical development and are ultimately commercialized. If we
are unable to develop suitable product formulations or
manufacturing processes to support large scale clinical testing
of our product candidates, including the VEGF Trap, IL-1 Trap,
IL-4/13 Trap, and AXOKINE, we may be unable to supply necessary
materials for our clinical trials, which would delay the
development of our product candidates. Similarly, if we are
unable to supply sufficient quantities of our product or develop
product formulations suitable for commercial use, we will not be
able to successfully commercialize our product candidates. For
example, we are in the process of developing formulations that
would allow delivery of higher doses of the IL-1 Trap to test in
clinical trials. The dose levels that will be tested are
substantially higher than the dose levels of other biological
therapeutics currently approved for treatment of rheumatoid
arthritis. Separate new formulations will be used for
subcutaneous and intravenous administration of the higher dose
therapeutic. If we are unable to develop or manufacture such a
higher dose formulation that can be produced in a cost-effective
manner, potential future IL-1 Trap sales and profitability may
be limited.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Even if our product candidates are ever
    approved, their commercial success is highly uncertain because
    our competitors may get to the marketplace before we do with
    better or lower cost drugs.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There is substantial competition in the
biotechnology and pharmaceutical industries from pharmaceutical,
biotechnology, and chemical companies. Many of our competitors
have substantially greater research, preclinical and clinical
product development and manufacturing capabilities, and
financial, marketing, and human resources than we do. Our
smaller competitors may also enhance their competitive position
if they acquire or discover patentable inventions, form
collaborative arrangements or merge with large pharmaceutical
companies. Even if we achieve product commercialization, our
competitors have achieved, and may continue to achieve, product
commercialization before our products are approved for marketing
and sale. Genentech has an approved VEGF antagonist on the
market and many different pharmaceutical and biotechnology
companies are working to develop competing VEGF antagonists,
including Novartis, Eyetech Pharmaceuticals, and Pfizer Inc.
Many of these molecules are farther along in development than
the VEGF Trap and may offer competitive advantages over our
molecule. The marketing approval for Genentech&#146;s VEGF
antagonist, Avastin<SUP>TM</SUP>, may make it more difficult for
us to enroll patients in clinical trials to support the VEGF
Trap. This may delay or impair our ability to successfully
develop and commercialize the VEGF Trap.
</FONT>

<P align="center"><FONT size="2">8
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The markets for both rheumatoid arthritis and
asthma are both very competitive. Several highly successful
medicines are available for these diseases. Examples include the
TNF-antagonists Enbrel&#174; (a registered trademark of Amgen
Inc.), Remicade&#174; (a registered trademark of Centocor Inc.),
and Humira&#174; (a registered trademark of Abbott Laboratories)
for rheumatoid arthritis, and the leukotriene-modifier
Singulair&#174; (a registered trademark of Merck), as well as
various inexpensive corticosteroid medicines for asthma. The
availability of highly effective FDA approved TNF-antagonists
makes it more difficult to successfully develop the IL-1 Trap
for the treatment of rheumatoid arthritis, since it will be
difficult to enroll patients with rheumatoid arthritis to
participate in clinical trials of the IL-1 Trap. This may delay
or impair our ability to successfully develop the drug
candidate. In addition, even if the IL-1 Trap is ever approved
for sale, it will be difficult for our drug to compete against
these FDA approved TNF-antagonists because doctors and patients
will have significant experience using these effective
medicines. Moreover, these approved therapeutics may offer
competitive advantages over the IL-1 Trap, such as requiring
fewer injections. In addition, there are both small molecules
and antibodies in development by third parties that are designed
to block the synthesis of interleukin-1 or inhibit the signaling
of interleukin-1. These drug candidates could offer competitive
advantages over the IL-1 Trap. The successful development of
these competing molecules could delay or impair our ability to
successfully develop and commercialize the IL-1 Trap.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There is also substantial competition in the
discovery and development of treatments for obesity, as well as
established, cost-effective, and emerging surgical,
prescription, and over-the-counter treatments for the disease
that may offer competitive advantages over AXOKINE. AXOKINE is
available only in injectable form, while the currently available
marketed medicines for the treatment of obesity, and a
late-stage product candidate in development by sanofi-aventis
Group, are delivered in pill form, which is generally favored
over injectable medicines. Therefore, even if AXOKINE is
approved for sale, the fact that it must be delivered by
injection may severely limit its market acceptance among
patients and physicians.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">The successful commercialization of our
    product candidates will depend on obtaining coverage and
    reimbursement for use of these products from third-party
    payors.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Sales of biopharmaceutical products largely
depend on the reimbursement of patients&#146; medical expenses
by government health care programs and private health insurers.
Without the financial support of the governments or third-party
payors, the market for any biopharmaceutical product will be
limited. These third-party payors increasingly challenge the
price and examine the cost-effectiveness of products and
services. Significant uncertainty exists as to the reimbursement
status of any new therapeutic, particularly if there exist
lower-cost standards of care. Third-party payors may not
reimburse sales of our products, which would harm our business.
</FONT>

<P align="left">
<B><FONT size="2">Risk Related to Employees</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We are dependent on our key personnel and
    if we cannot recruit and retain leaders in our research,
    development, manufacturing, and commercial organizations, our
    business will be harmed.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are highly dependent on our executive
officers. If we are not able to retain any of these persons or
our Chairman, our business may suffer. In particular, we depend
on the services of Roy Vagelos,&nbsp;M.D., the Chairman of our
Board of Directors, Leonard Schleifer,&nbsp;M.D.,&nbsp;Ph.D.,
our President and Chief Executive Officer, and George D.
Yancopoulos,&nbsp;M.D.,&nbsp;Ph.D., our Executive Vice
President, Chief Scientific Officer and President, Regeneron
Research Laboratories. There is intense competition in the
biotechnology industry for qualified scientists and managerial
personnel in the development, manufacture, and commercialization
of drugs. We may not be able to continue to attract and retain
the qualified personnel necessary for developing our business.
</FONT>

<P align="center"><FONT size="2">9
</FONT>

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<P align="left">
<B><FONT size="2">Risks Related to Intellectual
Property</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">If we cannot protect the confidentiality of
    our trade secrets or our patents are insufficient to protect our
    proprietary rights, our business and competitive position will
    be harmed.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our business requires using sensitive and
proprietary technology and other information that we protect as
trade secrets. We seek to prevent improper disclosure of these
trade secrets through confidentiality agreements. If our trade
secrets are improperly exposed, either by our own employees or
our collaborators, it would help our competitors and adversely
affect our business. We will be able to protect our proprietary
rights from unauthorized use by third parties only to the extent
that our rights are covered by valid and enforceable patents or
are effectively maintained as trade secrets. The patent position
of biotechnology companies involves complex legal and factual
questions and, therefore, enforceability cannot be predicted
with certainty. Our patents may be challenged, invalidated or
circumvented. Patent applications filed outside the United
States may be challenged by third parties who file an
opposition. Such opposition proceedings are increasingly common
in the European Union and are costly to defend. We have patent
applications that are being opposed and it is likely that we
will need to defend additional patent applications in the
future. Our patent rights may not provide us with a proprietary
position or competitive advantages against competitors.
Furthermore, even if the outcome is favorable to us, the
enforcement of our intellectual property rights can be expensive
and time consuming.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We may be restricted in our development
    and/or commercialization activities by third party
    patents.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our commercial success depends significantly on
our ability to operate without infringing the patents and other
proprietary rights of third parties. Other parties may allege
that they have blocking patents to our Trap products in clinical
development, either because they claim to hold proprietary
rights to fusion proteins or proprietary rights to components of
the Trap or the way it is manufactured. We are aware of certain
United States and foreign patents relating to particular IL-4
and IL-13 receptors. Our IL-4/13 Trap includes portions of the
IL-4 and IL-13 receptors. In addition, we are aware of a broad
patent held by Genentech relating to proteins fused to certain
immunoglobulin domains. Our Trap product candidates include
proteins fused to immunoglobulin domains. Although we do not
believe that we are infringing valid and enforceable third party
patents, the holders of these patents may sue us for
infringement and a court may find that we are infringing one or
more validly issued patents, which may materially harm our
business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any patent holders could sue us for damages and
seek to prevent us from manufacturing, selling or developing our
drug candidates, and a court may find that we are infringing
validly issued patents of third parties. In the event that the
manufacture, use or sale of any of our clinical candidates
infringes on the patents or violates other proprietary rights of
third parties, we may be prevented from pursuing product
development, manufacturing, and commercialization of our drugs
and may be required to pay costly damages. Such a result may
materially harm our business, financial condition, and results
of operations. Legal disputes are likely to be costly and time
consuming to defend.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We seek to obtain licenses to patents when, in
our judgment, such licenses are needed. If any licenses are
required, we may not be able to obtain such licenses on
commercially reasonable terms, if at all. The failure to obtain
any such license could prevent us from developing or
commercializing any one or more of our product candidates, which
could severely harm our business.
</FONT>

<P align="left">
<B><FONT size="2">Risks Related to Our Common Stock</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Our stock price may be extremely
    volatile.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There has been significant volatility in our
stock price and generally in the market prices of biotechnology
companies&#146; securities. Various factors and events may have
a significant impact on the market price of our common stock.
These factors include, by way of example:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">progress, delays or adverse results in clinical
    trials;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">announcement of technological innovations or
    product candidates by us or competitors;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">10
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">fluctuations in our operating results;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">public concern as to the safety or effectiveness
    of our product candidates;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">developments in our relationship with
    collaborative partners;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">developments in the biotechnology industry or in
    government regulation of healthcare;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">large sales of our common stock by our executive
    officers, directors or significant shareholders;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">arrivals and departures of key personnel;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">general market conditions.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The trading price of our common stock has been,
and could continue to be, subject to wide fluctuations in
response to these and other factors, including the sale or
attempted sale of a large amount of our common stock in the
market. Broad market fluctuations may also adversely affect the
market price of our common stock.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Future sales of our common stock by our
    significant shareholders or us may depress our stock price and
    impair our ability to raise funds in new share
    offerings.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A small number of our shareholders beneficially
own a substantial amount of our common stock. As of
December&nbsp;6, 2004, our six largest shareholders, which
include Aventis and Novartis, beneficially owned 47.5% of our
outstanding common shares, assuming, in the case of
Leonard&nbsp;S. Schleifer, M.D., Ph.D, our chief executive
officer, the exercise of all options held by him which are
exercisable within 60&nbsp;days of December&nbsp;6, 2004. As of
that date, Novartis owned 7,527,050&nbsp;shares of common stock,
representing approximately 13.5% of the common shares then
outstanding. Under our registration rights agreement with
Novartis, these shares of common stock may generally not be sold
or otherwise transferred by Novartis until after March&nbsp;28,
2005. As described under the caption &#147;Registration Rights
of One of Our Shareholders&#148; found on page&nbsp;15 of this
prospectus, commencing after March&nbsp;28, 2005, Novartis has
certain registration rights with respect to these shares. As of
December&nbsp;6, 2004, Aventis owned 2,799,522&nbsp;shares of
common stock, representing approximately 5.0% of the common
shares then outstanding. Under our stock purchase agreement with
Aventis, these shares may generally not be sold or otherwise
transferred until after September&nbsp;5, 2005, and for one year
after that date, Aventis may sell no more than
250,000&nbsp;shares in any calendar quarter. After
September&nbsp;5, 2006, Aventis may sell no more than
500,000&nbsp;shares in any calendar quarter. Accordingly, in
2005 and thereafter, as the restrictions on transfer applicable
to the shares of common stock owned by Novartis and Aventis
expire, these shares will be freely tradeable in the public
market, subject, in the case of Aventis, to the foregoing
continuing contractual sales volume restrictions. If Novartis or
Aventis, or our other significant shareholders or we, sell
substantial amounts of our common stock in the public market, or
the perception that such sales may occur exists, the market
price of our common stock could fall. Sales by our significant
shareholders, including Aventis and Novartis, also might make it
more difficult for us to raise funds by selling equity or
equity-related securities in the future at a time and price that
we deem appropriate.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Our existing shareholders may be able to
    exert significant influence over matters requiring shareholder
    approval.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of Class&nbsp;A stock, who are the
shareholders who purchased their stock from us before our
initial public offering, are entitled to ten votes per share,
while holders of common stock are entitled to one vote per
share. As of December&nbsp;6, 2004, holders of Class&nbsp;A
stock held 4.2% of all shares of common stock and Class&nbsp;A
stock then outstanding, and had 30.6% of the combined voting
power of all common shares. These shareholders, if acting
together, would be in a position to significantly influence the
election of our directors and to effect or prevent certain
corporate transactions that require majority or supermajority
approval of the combined classes, including mergers and other
business combinations. This may result in our company taking
</FONT>

<P align="center"><FONT size="2">11
</FONT>

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<DIV align="left">
<FONT size="2">corporate actions that you may not consider to be
in your best interest and may affect the price of our common
stock. As of December&nbsp;6, 2004:
</FONT>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our current officers and directors beneficially
    owned 14.8% of our outstanding common shares and 34.3% of the
    combined voting power of our common shares, assuming the
    exercise of all options held by such persons which are
    exercisable within 60&nbsp;days of December&nbsp;6,
    2004;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our six largest shareholders beneficially owned
    47.5% of our outstanding common shares and 54.5% of the combined
    voting power of our common shares, assuming, in the case of
    Leonard&nbsp;S. Schleifer, M.D., Ph.D, our chief executive
    officer, the exercise of all options held by him which are
    exercisable within 60&nbsp;days of December&nbsp;6, 2004.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">The anti-takeover effects of provisions of
    our charter, by-laws and our rights agreement, and of New York
    corporate law, could deter, delay or prevent an acquisition or
    other &#147;change in control&#148; of us and could adversely
    affect the price of our common stock.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our amended and restated certificate of
incorporation, our by-laws, our rights agreement and the New
York Business Corporation Law contain various provisions that
could have the effect of delaying or preventing a change in
control of our company or our management that shareholders may
consider favorable or beneficial. Some of these provisions could
discourage proxy contests and make it more difficult for you and
other shareholders to elect directors and take other corporate
actions. These provisions could also limit the price that
investors might be willing to pay in the future for shares of
our common stock. These provisions include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">authorization to issue &#147;blank check&#148;
    preferred stock, which is preferred stock that can be created
    and issued by the board of directors without prior shareholder
    approval, with rights senior to those of our common shareholders;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a staggered board of directors, so that it would
    take three successive annual meetings to replace all of our
    directors;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a requirement that removal of directors may only
    be effected for cause and only upon the affirmative vote of at
    least eighty percent (80%) of the outstanding shares entitled to
    vote for directors, as well as a requirement that any vacancy on
    the board of directors may be filled only by the remaining
    directors;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any action required or permitted to be taken at
    any meeting of shareholders may be taken without a meeting, only
    if, prior to such action, all of our shareholders consent, the
    effect of which is to require that shareholder action may only
    be taken at a duly convened meeting;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any shareholder seeking to bring business before
    an annual meeting of shareholders must provide timely notice of
    this intention in writing and meet various other
    requirements;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">under the New York Business Corporation Law, a
    plan of merger or consolidation of the Company must be approved
    by &nbsp;2/3 of the votes of all outstanding shares entitled to
    vote thereon. See the risk factor immediately above captioned
    <I>&#147;Our existing shareholders may be able to exert
    significant influence over matters requiring shareholder
    approval.&#148;</I>
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, we have a shareholder rights plan
which could make it more difficult for a third party to acquire
us without the support of our board of directors and principal
shareholders. See &#147;Description of Capital Stock-Rights
Plan.&#148; In addition, many of our stock options issued under
our 2000 Long-Term Incentive Plan may become fully vested in
connection with a &#147;change in control&#148; of the Company,
as defined in the plan.
</FONT>

<P align="center"><FONT size="2">12
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='106'></A>
</DIV>

<!-- link1 "USE OF PROCEEDS" -->

<P align="center">
<B><FONT size="2">USE OF PROCEEDS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless otherwise stated in the applicable
prospectus supplement, we intend to use the net proceeds of any
securities sold by us to fund pre-clinical and clinical
development of our product candidates, to fund basic research
activities, to continue development of our technology platforms,
for capital expenditures, to redeem, repay or purchase our
5&nbsp;1/2%&nbsp;convertible senior subordinated notes due
October&nbsp;17, 2008, and for general corporate purposes,
including working capital, acquisitions, and other business
opportunities.
</FONT>

<P align="left">
<A name='107'></A>

<!-- link1 "RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS" -->

<P align="center">
<B><FONT size="2">RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND</FONT></B>

<DIV align="center">
<B><FONT size="2">PREFERRED STOCK DIVIDENDS</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth our ratio of
earnings to combined fixed charges and preferred stock
dividends, if any, for the periods presented. We had no
preferred stock outstanding for any of these periods.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="49%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Nine Months</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">September&nbsp;30,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2004</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ratio of earnings to combined fixed charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(A</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(A</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(A</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(A</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(A</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.43</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(A)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Due to our losses in the years ended
    December&nbsp;31, 1999, 2000, 2001, 2002, and 2003, the ratio
    coverage was less than 1:1 for those periods. We would have
    needed to generate additional earnings of $18.9&nbsp;million,
    $17.1&nbsp;million, $75.2&nbsp;million, $124.6&nbsp;million, and
    $107.6&nbsp;million, for the years ended December&nbsp;31, 1999,
    2000, 2001, 2002, and 2003, respectively, to have achieved a
    coverage of 1:1.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For purposes of computing these ratios, earnings
represents net income (loss) before income taxes plus fixed
charges. Combined fixed charges represent interest expense
capitalized interest, amortization of deferred financing costs,
and such portion of rental expense, deemed representative of the
interest factor. The denominator is increased for preferred
stock dividend requirements, if any, which represent the amount
of pre-tax earnings required to cover such dividend requirements.
</FONT>

<P align="left">
<A name='108'></A>

<!-- link1 "DESCRIPTION OF SECURITIES" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF SECURITIES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus contains a summary of our common
stock and Class&nbsp;A stock, preferred stock, debt securities,
and warrants to purchase common stock, preferred stock, and debt
securities. These summaries are not meant to be a complete
description of each security. The particular terms of any
security to be issued pursuant hereto will be set forth in a
related prospectus supplement. This prospectus and the
accompanying prospectus supplement will contain the material
terms and conditions for each security.
</FONT>

<P align="left">
<A name='109'></A>

<!-- link1 "DESCRIPTION OF CAPITAL STOCK" -->

<P align="left">
<B><FONT size="2">DESCRIPTION OF CAPITAL STOCK</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our authorized capital stock consists of
160,000,000&nbsp;shares of common stock, par value
$0.001&nbsp;per share, 40,000,000&nbsp;shares of Class&nbsp;A
stock, par value $0.001&nbsp;per share, and
30,000,000&nbsp;shares of preferred stock, par value
$0.01&nbsp;per share. As of December&nbsp;6, 2004,
53,384,650&nbsp;shares of our common stock were outstanding and
held by 621&nbsp;shareholders of record and
2,358,373&nbsp;shares of our Class&nbsp;A stock were outstanding
and held by 56&nbsp;shareholders of record. The following is a
summary description of our capital stock. For more information,
see our Restated Certificate of Incorporation dated
June&nbsp;21, 1991 and the amendments thereto.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Common Stock and Class&nbsp;A
    Stock</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">General.</FONT></I><FONT size="2"> The rights
of holders of common stock and holders of Class&nbsp;A stock are
identical except for voting rights, conversion rights, and
restrictions on transferability.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Voting Rights.</FONT></I><FONT size="2"> The
holders of Class&nbsp;A stock are entitled to ten votes per
share and the holders of common stock are entitled to one vote
per share. Except as otherwise expressly provided by law, and
subject to any voting rights provided to holders of preferred
stock, holders of common shares have exclusive voting rights on
all matters requiring a vote of shareholders. Except as provided
by law, the holders of Class&nbsp;A stock and the holders of
shares of common stock will vote together as a single class on
all matters presented to the
</FONT>

<P align="center"><FONT size="2">13
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">shareholders for their vote or approval,
including the election of directors. Shareholders are not
entitled to vote cumulatively for the election of directors and
no class of outstanding common shares acting alone is entitled
to elect any directors.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Transfer
Restrictions.</FONT></I><FONT size="2"> Class&nbsp;A stock is
subject to certain limitations on transfer that do not apply to
the common stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Dividends and
Liquidation.</FONT></I><FONT size="2"> Except as described in
this paragraph, holders of Class&nbsp;A stock and holders of our
common stock have an equal right to receive dividends when and
if declared by our board of directors out of funds legally
available therefor. If a dividend or distribution payable in
Class&nbsp;A stock is made on the Class&nbsp;A stock, we must
also make a pro rata and simultaneous dividend or distribution
on the common stock payable in shares of common stock.
Conversely, if a dividend or distribution payable in common
stock is made on the common stock, we must also make a pro rata
and simultaneous dividend or distribution on the Class&nbsp;A
stock payable in shares of Class&nbsp;A stock. In the event of
our liquidation, dissolution or winding up, holders of the
shares of Class&nbsp;A stock and common stock are entitled to
share equally, share-for-share, in the assets available for
distribution after payment of all creditors and the liquidation
preferences of our preferred stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Optional Conversion
Rights.</FONT></I><FONT size="2"> Each share of Class&nbsp;A
stock may, at any time and at the option of the holder, be
converted into one fully paid and nonassessable share of common
stock. Upon conversion, such shares of common stock would not be
subject to restrictions on transfer that applied to the shares
of Class&nbsp;A stock prior to conversion except to the extent
such restrictions are imposed under applicable securities laws.
The shares of common stock are not convertible into or
exchangeable for shares of Class&nbsp;A stock or any other of
our shares or securities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Other Provisions.</FONT></I><FONT size="2">
Holders of Class&nbsp;A stock and common stock have no
preemptive rights to subscribe for any additional securities of
any class which we may issue and there are no redemption
provisions or sinking fund provisions applicable to either such
class, nor are our shares of Class&nbsp;A stock or the common
stock subject to calls or assessments.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Nasdaq National Market
Listing.</FONT></I><FONT size="2"> Our common stock is quoted on
the Nasdaq National Market. The current rules of the National
Association of Securities Dealers, Inc. (the &#147;NASD&#148;)
effectively preclude the trading or quotation through the Nasdaq
National Market of any securities of an issuer which has issued
securities or taken other corporate action that would have the
effect of nullifying, restricting or disparately reducing the
per share voting of an outstanding class or classes of equity
securities registered under section&nbsp;12 of the Exchange Act.
Certain national securities exchanges have adopted similar rules
or policies. We do not intend to issue any additional shares of
any stock that would make it ineligible for inclusion on the
Nasdaq National Market or any national securities exchange.
However, if we issue additional stock that causes us to become
ineligible for continued inclusion on the Nasdaq National
Market, then the ineligibility would be likely to materially
reduce the liquidity of an investment in our common stock and
would likely depress the market value of our common stock below
that which would otherwise prevail.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Transfer Agent and
Registrar.</FONT></I><FONT size="2"> The transfer agent and
registrar for our common stock is American Stock
Transfer&nbsp;&#38; Trust Company.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Preferred Stock</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Restated Certificate of Incorporation allows
us to issue up to 30,000,000&nbsp;shares of preferred stock in
one or more series and as may be determined by our board of
directors who may establish from time to time the number of
shares to be included in each such series, to fix the
designation, powers, preference, and rights of the shares of
each such series and any qualifications, limitations or
restrictions thereof and to increase or decrease the number of
shares of any such series without any further vote or action by
the shareholders. Our board of directors may authorize, without
shareholder approval, the issuance of preferred stock with
voting and conversion rights that could adversely affect the
voting power and other rights of holders of our common stock.
Preferred stock could thus be issued quickly with terms designed
to delay or prevent a change in control or to make the removal
of management more difficult. In certain circumstances, this
could have the effect of decreasing the market price of our
common stock.
</FONT>

<P align="center"><FONT size="2">14
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Registration Rights of One of Our
    Shareholders</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">One of our shareholders has registration rights.
Under the registration rights agreement between us and such
shareholder, after March&nbsp;28, 2005, such shareholder (and
certain of its transferees) may request that we file a
registration statement under the Securities Act and, upon such
request and subject to minimum size and other conditions, we
will be required to use our best efforts to effect any such
registration. We are not required to effect more than four such
registrations. We are generally obligated to bear the expenses,
other than underwriting discounts and sales commissions, of all
of these registrations.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Rights Plan</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">General.</FONT></I><FONT size="2"> In
September 1996, we adopted a shareholder rights plan. Our rights
agreement provides that each of our common shares will have
attached to it one right which, when exercisable, entitles the
registered holder upon exercise to purchase a unit consisting of
one one-thousandth of a share of Series&nbsp;A junior
participating preferred stock, par value $.01&nbsp;per share, at
an initial purchase price of $120&nbsp;per unit, subject to
customary antidilution adjustments. For a description of the
terms of our Series&nbsp;A junior participating preferred stock,
see &#147;&#151;&nbsp;Series&nbsp;A Junior Participating
Preferred Stock&#148; below. Holders of rights will have no
rights as shareholders, including the right to vote or receive
dividends, simply by virtue of holding the rights.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Exercisability of
Rights.</FONT></I><FONT size="2"> The rights will not become
exercisable until the earlier of:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">ten days following a public announcement that a
    person or group (other than specified exempted persons) has
    become the beneficial owner of 20% or more of our common shares
    then outstanding;&nbsp;or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">ten business days following the commencement of a
    tender or exchange offer that would result in a person or group
    becoming the beneficial owner of 20% or more of our common
    shares then outstanding.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">&#147;Flip-In&#148;
Feature.</FONT></I><FONT size="2"> In the event a person or
group (other than specified exempted persons) becomes the
beneficial owner of 20% or more of our common shares then
outstanding, other than pursuant to a tender or exchange offer
for all outstanding common shares at a price and on other terms
which a majority of our non-officer directors determine to be
fair to and otherwise in the best interests of our shareholders,
each right will entitle the holder (except for such person or
group, whose rights will automatically become null and void) to
acquire, upon exercise of the right, shares of our common stock
having a value equal to twice the exercise price of the right.
For example, if we assume that the initial purchase price of
$120 is in effect on the date that this &#147;flip-in&#148;
feature of the right becomes applicable, each holder of a right,
except for the person or group that has become the beneficial
owner of 20% or more of our common shares then outstanding, can
exercise a right by paying us $120 in order to receive from us
common stock having a value equal to $240.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">&#147;Flip-Over&#148;
Feature.</FONT></I><FONT size="2"> If, after a person or group
(other than specified exempted persons) becomes the beneficial
owner of 20% or more of our common shares, we engage in a merger
or other business combination transaction and are not the
surviving corporation, engage in a merger or other business
combination in which we are the surviving corporation and our
common shares are changed or exchanged, or 50% or more of our
assets, cash flow or earning power is sold or transferred, then
each holder of a right, except for the person or group that is
the beneficial owner of 20% or more of our common shares then
outstanding as described above, will have the right to receive,
upon exercise of the right, shares of the acquiring
company&#146;s capital stock having a value equal to twice the
exercise price of the right.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Redemption of
Rights.</FONT></I><FONT size="2"> Our board of directors may
redeem the rights, at a redemption price of $.01&nbsp;per right,
at any time prior to the earlier of:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">ten days following the public disclosure that a
    person or group (other than specified exempted persons) has
    become the beneficial owner of 20% or more of our common shares
    then outstanding,&nbsp;or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">5:00&nbsp;p.m. New York City time on
    October&nbsp;18, 2006,
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">in which event the rights will terminate and the
holders of the rights will have the right to receive only the
redemption price for each right held.
</FONT>

<P align="center"><FONT size="2">15
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Amendment of Rights.</FONT></I><FONT size="2">
Except as described below in this paragraph, at any time before
the rights become exercisable, our rights agreement may be
supplemented or amended in any manner by our board of directors
without the consent of the holders of common shares. After the
rights become exercisable, except as described below in this
paragraph, our board of directors may supplement or amend the
rights agreement to cure any ambiguity, correct any defects,
shorten or lengthen any time period, or make any other change
that does not adversely affect the interests of holders of the
rights (other than persons or groups (excluding specified
exempted persons) beneficially owning 20% or more of our
outstanding common shares), except that such no supplement or
amendment may lengthen a time period relating to when the rights
may be redeemed at a time when the rights are not redeemable or
any other time period unless the lengthening is for the purpose
of protecting, enhancing or clarifying the rights of, and/or the
benefits to, the holders of the rights. In addition, no
supplement or amendment of the rights agreement may change the
redemption price for the rights, the final expiration date for
the rights of October&nbsp;18, 2006, the purchase price payable
to exercise a right or the number of one one-thousandths of a
share of Series&nbsp;A junior participating preferred stock for
which a right is exercisable.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Expiration of
Rights.</FONT></I><FONT size="2"> If not previously exercised,
the rights will expire at 5:00&nbsp;p.m. New York City time on
October&nbsp;18, 2006, unless we redeem the rights earlier.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Anti-Takeover
Effects.</FONT></I><FONT size="2"> Our rights agreement may have
anti-takeover effects. The rights may cause substantial dilution
to a person or group that attempts to acquire us. Accordingly,
the existence of the rights may deter acquirors from making
takeover proposals or tender offers. However, the rights are not
intended to prevent a takeover, but rather are designed to
enhance the ability of our board to negotiate with an acquiror
on behalf of all shareholders. The rights should not interfere
with any merger or other business combination approved by our
board of directors, since the board may redeem or amend the
rights as described above, so that, in general, the rights would
not be or become exercisable in connection with such an approved
transaction. In addition, the rights should not interfere with a
proxy contest.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Series&nbsp;A Junior Participating Preferred
Stock.</FONT></I><FONT size="2"> In connection with adopting our
shareholder rights plan, our board of directors designated
100,000&nbsp;shares of our authorized preferred stock as
Series&nbsp;A junior participating preferred stock, none of
which has been issued. Shares of our Series&nbsp;A junior
participating preferred stock are issuable only if the rights
become and continue to be exercisable, and are exercised, for
Series&nbsp;A junior participating preferred stock in accordance
with the rights agreement. If issued, each share of the
Series&nbsp;A junior participating preferred stock:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">will be nonredeemable and junior to all other
    series of preferred stock, unless otherwise provided in the
    terms of those other series of preferred stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">will have a preferential quarterly dividend in an
    amount equal to the greater of $.01 or 1,000 times the aggregate
    per share amount of cash and non-cash dividends declared on our
    common shares;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">will have 1,000 votes, voting together with the
    common shares and any other capital stock with general voting
    rights;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">in the event of any merger, consolidation or
    other transaction in which common shares are converted or
    exchanged, will be entitled to receive 1,000 times the amount
    and type of consideration received per common share.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Upon and during specified dividend arrearages,
the holders of Series&nbsp;A Participating Preferred Stock will
also have the right, voting together as a single class with any
other shares of preferred stock having such arrearages, to elect
two directors. Upon liquidation, the holders of Series&nbsp;A
junior participating preferred stock will be entitled to receive
an aggregate preferred liquidation payment intended to equal
1000 times the then current purchase price payable to exercise a
right, plus an amount equal to accrued and unpaid dividends and
distributions on the Series&nbsp;A junior participating
preferred stock, whether or not declared, to the date of such
payment. The rights of our Series&nbsp;A junior participating
preferred stock as to dividends, liquidation and voting, and in
the event of mergers and consolidations, are protected by
customary antidilution provisions.
</FONT>

<P align="center"><FONT size="2">16
</FONT>

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<DIV>&nbsp;</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Anti-Takeover Effects of Provisions of the
    Charter and By-Laws, the Rights Agreement, and New&nbsp;York
    corporate&nbsp;law</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For a description of anti-takeover effects of
various provisions of our charter, by-laws, our rights agreement
and the New York Business Corporation Law, please see
<B>&#147;RISK FACTORS&nbsp;&#151; Risks Related To Common
Stock&nbsp;&#151; </B><I>Our existing shareholders may be able
to exert significant influence over matters requiring
shareholder approval&#148; </I>and&nbsp;&#151; <I>&#147;The
anti-takeover effects of provisions of our charter, by-laws and
our rights agreement, and of New York corporate law, could
defer, delay or prevent an acquisition or other &#147;change in
control&#148; of us and could adversely affect the price of our
common stock&#148;</I>, found on pages&nbsp;11 and 12 of this
prospectus, and the description of our rights plan in the
immediately preceding section under the caption &#147;Rights
Plan&#148;.
</FONT>

<P align="left">
<A name='110'></A>

<!-- link1 "DESCRIPTION OF DEBT SECURITIES" -->

<P align="left">
<B><FONT size="2">DESCRIPTION OF DEBT SECURITIES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following descriptions of the debt securities
do not purport to be complete and are subject to and qualified
in their entirety by reference to the indenture, a form of which
has been filed with the SEC as an exhibit to the registration
statement of which this prospectus is a part. Any future
supplemental indenture or similar document also will be so
filed. You should read the indenture and any supplemental
indenture or similar document because they, and not this
description, define your rights as holder of our debt
securities. All capitalized terms have the meanings specified in
the indenture.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may issue, from time to time, debt securities,
in one or more series, that will consist of either our senior
debt (&#147;Senior Debt Securities&#148;), our senior
subordinated debt (&#147;Senior Subordinated Debt
Securities&#148;), our subordinated debt (&#147;Subordinated
Debt Securities&#148;) or our junior subordinated debt
(&#147;Junior Subordinated Debt Securities&#148; and, together
with the Senior Subordinated Debt Securities and the
Subordinated Debt Securities, the &#147;Subordinated
Securities&#148;). The debt securities we offer will be issued
under an indenture between us
and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
acting as trustee. Debt securities, whether senior, senior
subordinated, subordinated or junior subordinated, may be issued
as convertible debt securities or exchangeable debt securities.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">General Terms of the
    Indenture</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indenture does not limit the amount of debt
securities that we may issue. It provides that we may issue debt
securities up to the principal amount that we may authorize and
may be in any currency or currency unit designated by us. Except
for the limitations on consolidation, merger, and sale of all or
substantially all of our assets contained in the indenture, the
terms of the indenture do not contain any covenants or other
provisions designed to afford holders of any debt securities
protection with respect to our operations, financial condition
or transactions involving us.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may issue the debt securities issued under the
indenture as &#147;discount securities,&#148; which means they
may be sold at a discount below their stated principal amount.
These debt securities, as well as other debt securities that are
not issued at a discount, may, for U.S.&nbsp;federal income tax
purposes, be treated as if they were issued with &#147;original
issue discount,&#148; or &#147;OID,&#148; because of interest
payment and other characteristics. Special U.S.&nbsp;federal
income tax considerations applicable to debt securities issued
with original issue discount will be described in more detail in
any applicable prospectus supplement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The applicable prospectus supplement for a series
of debt securities that we issue will describe, among other
things, the following terms of the offered debt securities:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the title;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the aggregate principal amount;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">whether issued in fully registered form without
    coupons or in a form registered as to principal only with
    coupons or in bearer form with coupons;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">whether issued in the form of one or more global
    securities and whether all or a portion of the principal amount
    of the debt securities is represented thereby;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">17
</FONT>

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<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the price or prices at which the debt securities
    will be issued;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the date or dates on which principal is payable;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the place or places where and the manner in which
    principal, premium or interest will be payable and the place or
    places where the debt securities may be presented for transfer
    and, if applicable, conversion or exchange;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">interest rates, and the dates from which
    interest, if any, will accrue, and the dates when interest is
    payable;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the right, if any, to extend the interest payment
    periods and the duration of the extensions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our rights or obligations to redeem or purchase
    the debt securities, including sinking fund or partial
    redemption payments;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">conversion or exchange provisions, if any,
    including conversion or exchange prices or rates and adjustments
    thereto;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the currency or currencies of payment of
    principal or interest;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the terms applicable to any debt securities
    issued at a discount from their stated principal amount;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the terms, if any, pursuant to which any debt
    securities will be subordinate to any of our other debt;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">if the amount of payments of principal or
    interest is to be determined by reference to an index or
    formula, or based on a coin or currency other than that in which
    the debt securities are stated to be payable, the manner in
    which these amounts are determined and the calculation agent, if
    any, with respect thereto;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">if other than the entire principal amount of the
    debt securities when issued, the portion of the principal amount
    payable upon acceleration of maturity as a result of a default
    on our obligations;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">if applicable, covenants affording holders of
    debt protection with respect to our operations, financial
    condition or transactions involving us;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any other specific terms of any debt securities.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The applicable prospectus supplement will set
forth certain U.S.&nbsp;federal income tax considerations for
holders of any debt securities and the securities exchange or
quotation system on which any debt securities are listed or
quoted, if any.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Debt securities issued by us will be structurally
subordinated to all indebtedness and other liabilities of our
subsidiaries, except to the extent any such subsidiary
guarantees or is otherwise obligated to make payment on such
debt securities. As of December&nbsp;6, 2004, we have no
subsidiaries.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless otherwise provided in the applicable
prospectus supplement, all securities of any one series need not
be issued at the same time and may be issued from time to time
without consent of any holder.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Senior Debt Securities</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Payment of the principal of, premium, if any, and
interest on Senior Debt Securities will rank on a parity with
all of our other existing and future unsecured and
unsubordinated debt.
</FONT>

<DIV>&nbsp;</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Senior Subordinated Debt
    Securities</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Payment of the principal of, premium, if any, and
interest on Senior Subordinated Debt Securities will be junior
in right of payment to the prior payment in full of all of our
existing and future unsubordinated debt. We will set forth in
the applicable prospectus supplement relating to any Senior
Subordinated Debt Securities the subordination terms of such
securities as well as the aggregate amount of outstanding debt,
as of the most recent practicable date, that by its terms would
be senior to the Senior Subordinated Debt Securities. We will
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">also set forth in such prospectus supplement
limitations, if any, on issuance of additional senior debt or
additional senior subordinated debt.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Subordinated Debt Securities</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Payment of the principal of, premium, if any, and
interest on Subordinated Debt Securities will be subordinated
and junior in right of payment to the prior payment in full of
all of our senior and senior subordinated debt. We will set
forth in the applicable prospectus supplement relating to any
Subordinated Debt Securities the subordination terms of such
securities as well as the aggregate amount of outstanding
indebtedness, as of the most recent practicable date, that by
its terms would be senior to the Subordinated Debt Securities.
We will also set forth in such prospectus supplement
limitations, if any, on issuance of additional senior debt,
additional senior subordinated debt or additional subordinated
debt.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Junior Subordinated Debt
    Securities</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Payment of the principal of, premium, if any, and
interest on Junior Subordinated Debt Securities will be
subordinated and junior in right of payment to the prior payment
in full of all of our senior, senior subordinated, and
subordinated debt. We will set forth in the applicable
prospectus supplement relating to any Junior Subordinated Debt
Securities the subordination terms of such securities as well as
the aggregate amount of outstanding debt, as of the most recent
practicable date, that by its terms would be senior to the
Junior Subordinated Debt Securities. We will also set forth in
such prospectus supplement limitations, if any, on issuance of
additional debt.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Conversion or Exchange Rights</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Debt securities may be convertible into or
exchangeable for our other securities or property. The terms and
conditions of conversion or exchange will be set forth in the
applicable prospectus supplement. The terms will include, among
others, the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the conversion or exchange price;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the conversion or exchange period;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">provisions regarding the ability of us or the
    holder to convert or exchange the debt securities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">events requiring adjustment to the conversion or
    exchange price;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">provisions affecting conversion or exchange in
    the event of our redemption of the debt securities.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Consolidation, Merger or Sale</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We cannot consolidate or merge with or into, or
transfer or lease all or substantially all of our assets to, any
person unless (a)&nbsp;we will be the continuing corporation or
(b)&nbsp;the successor corporation or person to which our assets
are transferred or leased is a corporation organized under the
laws of the United States, any state of the United States or the
District of Columbia and it expressly assumes our obligations on
the debt securities and under the indenture. In addition, we
cannot effect such a transaction unless immediately after giving
effect to such transaction, no default or event of default under
the indenture shall have occurred and be continuing. Subject to
certain exceptions, when the person to whom our assets are
transferred or leased has assumed our obligations under the debt
securities and the indenture, we shall be discharged from all of
our obligations under the debt securities and the indenture.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This covenant would not apply to any
recapitalization transaction, a change of control of our company
or a highly leveraged transaction, unless the transaction or
change of control were structured to include a merger or
consolidation or transfer or lease of all or substantially all
of our assets.
</FONT>

<P align="center"><FONT size="2">19
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Events of Default</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless otherwise indicated, the term &#147;Event
of Default,&#148; when used in the indenture in respect of a
series of debt securities, means any of the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">failure to pay interest on any debt security of
    such series for 30&nbsp;days after the date payment is due and
    payable, provided that an extension of an interest payment
    period by us in accordance with the terms of the debt securities
    of such series shall not constitute a failure to pay interest;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">failure to pay principal or premium, if any, on
    any debt security of such series when due, either at maturity,
    upon any redemption, by declaration or otherwise;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">failure to make sinking fund payments in respect
    of any debt security of such series when due;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">failure to perform any other covenant contained
    in the indenture (other than a covenant in the indenture solely
    for the benefit of a different series of debt securities) for
    90&nbsp;days after we receive written notice that performance is
    required from the trustee or the holders of at least 25% in
    aggregate principal amount of the debt securities of such series
    then outstanding;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">events in bankruptcy, insolvency or
    reorganization of our company;&nbsp;or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any other Event of Default provided in the
    applicable resolution of our board of directors or the
    supplemental indenture under which we issue such series of debt
    securities.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">An Event of Default for a particular series of
debt securities does not necessarily constitute an Event of
Default for any other series of debt securities issued under the
indenture. If an Event of Default relating to the payment of
interest, principal or any sinking fund installment involving
any series of debt securities has occurred and is continuing,
the trustee or the holders of not less than 25% in aggregate
principal amount of the debt securities of each affected series
then outstanding may declare the entire principal of all the
debt securities of that series to be due and payable immediately.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If an Event of Default relating to the
performance of other covenants in the indenture occurs and is
continuing for a period of 90&nbsp;days after notice of such, or
if any other Event of Default provided in a supplemental
indenture or board resolution occurs and is continuing, and such
Event of Default involves all of the series of Senior Debt
Securities, then the trustee or the holders of not less than 25%
in aggregate principal amount of all of the series of Senior
Debt Securities then outstanding (treated as one class) may
declare the entire principal amount of all of the series of
Senior Debt Securities due and payable immediately.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Similarly, if an Event of Default relating to the
performance of other covenants in the indenture occurs and is
continuing for a period of 90&nbsp;days after notice of such, or
if any other Event of Default provided in a supplemental
indenture or board resolution occurs and is continuing, and such
Event of Default involves all of the series of Subordinated
Securities, then the trustee or the holders of not less than 25%
in aggregate principal amount of all of the series of
Subordinated Securities may declare the entire principal amount
of all of the series of Subordinated Securities due and payable
immediately.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If, however, the Event of Default relating to the
performance of other covenants in the indenture or any other
Event of Default provided in a supplemental indenture or board
resolution that has occurred and is continuing is for less than
all of the series of Senior Debt Securities or Subordinated
Securities, as the case may be, then, the trustee or the holders
of not less than 25% in aggregate principal amount of each
affected series of the Senior Debt Securities or the
Subordinated Securities, as the case may be, may declare the
entire principal amount of all debt securities of such affected
series due and payable immediately. The holders of not less than
a majority in aggregate principal amount of the debt securities
of a series may, after satisfying conditions, rescind and annul
any of the above-described declarations and consequences
involving the series.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If an Event of Default relating to events in
bankruptcy, insolvency or reorganization of our company occurs
and is continuing, then the principal amount of all of the debt
securities outstanding under the indenture, and any accrued
interest, will automatically become due and payable immediately,
without any declaration or other act by the trustee or any
holder.
</FONT>

<P align="center"><FONT size="2">20
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indenture imposes limitations on suits
brought by holders of debt securities against us. Except as
provided below, no holder of debt securities of any series may
institute any action against us under the indenture unless:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the holder has previously given to the trustee
    written notice of default and continuance of that default;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the holders of at least 25% in principal amount
    of the outstanding debt securities of the affected series have
    requested that the trustee institute the action;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the requesting holders have offered the trustee
    reasonable indemnity for expenses and liabilities that may be
    incurred by bringing the action;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the trustee has not instituted the action within
    60&nbsp;days of the request;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the trustee has not received inconsistent
    direction by the holders of a majority in principal amount of
    the outstanding debt securities of the series.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Notwithstanding the foregoing, each holder of
debt securities of any series has the right, which is absolute
and unconditional, to receive payment of the principal of and
premium and interest, if any, on such debt securities when due
and to institute suit for the enforcement of any such payment,
and such rights may not be impaired without the consent of that
holder of debt securities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will be required to file annually with the
trustee a certificate, signed by an officer of our company,
stating whether or not the officer knows of any default by us in
the performance, observance or fulfillment of any condition or
covenant of the indenture.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Registered Global Securities</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may issue the debt securities of a series in
whole or in part in the form of one or more fully registered
global securities that we will deposit with a depositary or with
a nominee for a depositary identified in the applicable
prospectus supplement and registered in the name of such
depositary or nominee. In such case, we will issue one or more
registered global securities denominated in an amount equal to
the aggregate principal amount of all of the debt securities of
the series to be issued and represented by such registered
global security or securities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless and until it is exchanged in whole or in
part for debt securities in definitive registered form, a
registered global security may not be transferred except as a
whole:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">by the depositary for such registered global
    security to its nominee;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">by a nominee of the depositary to the depositary
    or another nominee of the depositary; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">by the depositary or its nominee to a successor
    of the depositary or a nominee of the successor.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The prospectus supplement relating to a series of
debt securities will describe the specific terms of the
depositary arrangement with respect to any portion of such
series represented by a registered global security. We
anticipate that the following provisions will apply to all
depositary arrangements for debt securities:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">ownership of beneficial interests in a registered
    global security will be limited to persons that have accounts
    with the depositary for the registered global security, those
    persons being referred to as &#147;participants,&#148; or
    persons that may hold interests through participants;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">upon the issuance of a registered global
    security, the depositary for the registered global security will
    credit, on its book-entry registration and transfer system, the
    participants&#146; accounts with the respective principal
    amounts of the debt securities represented by the registered
    global security beneficially owned by the participants;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any dealers, underwriters or agents participating
    in the distribution of the debt securities will designate the
    accounts to be credited; and
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">21
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">ownership of any beneficial interest in the
    registered global security will be shown on, and the transfer of
    any ownership interest will be effected only through, records
    maintained by the depositary for the registered global security
    (with respect to interests of participants) and on the records
    of participants (with respect to interests of persons holding
    through participants).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The laws of some states may require that certain
purchasers of securities take physical delivery of the
securities in definitive form. These laws may limit the ability
of those persons to own, transfer or pledge beneficial interests
in registered global securities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">So long as the depositary for a registered global
security, or its nominee, is the registered owner of the
registered global security, the depositary or the nominee, as
the case may be, will be considered the sole owner or holder of
the debt securities represented by the registered global
security for all purposes under the indenture. Except as set
forth below, owners of beneficial interests in a registered
global security:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">will not be entitled to have the debt securities
    represented by a registered global security registered in their
    names;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">will not receive or be entitled to receive
    physical delivery of the debt securities in the definitive
    form;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">will not be considered the owners or holders of
    the debt securities under the indenture.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Accordingly, each person owning a beneficial
interest in a registered global security must rely on the
procedures of the depositary for the registered global security
and, if the person is not a participant, on the procedures of a
participant through which the person owns its interest, to
exercise any rights of a holder under the indenture.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We understand that under existing industry
practices, if we request any action of holders or if an owner of
a beneficial interest in a registered global security desires to
give or take any action that a holder is entitled to give or
take under the indenture, the depositary for the registered
global security would authorize the participants holding the
relevant beneficial interests to give or take the action, and
those participants would authorize beneficial owners owning
through those participants to give or take the action or would
otherwise act upon the instructions of beneficial owners holding
through them.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will make payments of principal and premium,
if any, and interest, if any, on debt securities represented by
a registered global security registered in the name of a
depositary or its nominee to the depositary or its nominee, as
the case may be, as the registered owners of the registered
global security. None of our company, the trustee or any other
agent of our company or the trustee will be responsible or
liable for any aspect of the records relating to, or payments
made on account of, beneficial ownership interests in the
registered global security or for maintaining, supervising or
reviewing any records relating to the beneficial ownership
interests.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We expect that the depositary for any debt
securities represented by a registered global security, upon
receipt of any payments of principal and premium, if any, and
interest, if any, in respect of the registered global security,
will immediately credit participants&#146; accounts with
payments in amounts proportionate to their respective beneficial
interests in the registered global security as shown on the
records of the depositary. We also expect that standing customer
instructions and customary practices will govern payments by
participants to owners of beneficial interests in the registered
global security held through the participants, as is now the
case with the securities held for the accounts of customers in
bearer form or registered in &#147;street name.&#148; We also
expect that any of these payments will be the responsibility of
the participants.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the depositary for any debt securities
represented by a registered global security is at any time
unwilling or unable to continue as depositary or ceases to be a
clearing agency registered under the Exchange Act, we will
appoint an eligible successor depositary. If we fail to appoint
an eligible successor depositary within 90&nbsp;days, we will
issue the debt securities in definitive form in exchange for the
registered global security. In addition, we may at any time and
in our sole discretion decide not to have any of the debt
securities of a series represented by one or more registered
global securities. In such event, we will issue debt securities
of that series in a definitive form in exchange for all of the
registered global securities representing the debt securities.
</FONT>

<P align="center"><FONT size="2">22
</FONT>

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<DIV align="left">
<FONT size="2">The trustee will register any debt securities
issued in definitive form in exchange for a registered global
security in such name or names as the depositary, based upon
instructions from its participants, shall instruct the trustee.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may also issue bearer debt securities of a
series in the form of one or more global securities, referred to
as &#147;bearer global securities.&#148; We will deposit these
bearer global securities with a common depositary for Euroclear
System and Clearstream Bank Luxembourg, Societe Anonyme, or with
a nominee for the depositary identified in the prospectus
supplement relating to that series. The prospectus supplement
relating to a series of debt securities represented by a bearer
global security will describe the specific terms and procedures,
including the specific terms of the depositary arrangement and
any specific procedures for the issuance of debt securities in
definitive form in exchange for a bearer global security, with
respect to the position of the series represented by a bearer
global security.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Discharge, Defeasance, and Covenant
    Defeasance</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We can discharge or defease our obligations under
the indenture as set forth below. Unless otherwise set forth in
the applicable prospectus supplement, the subordination
provisions applicable to any Subordinated Securities will be
expressly made subject to the discharge and defeasance
provisions of the indenture.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may discharge some of our obligations to
holders of any series of debt securities that have not already
been delivered to the trustee for cancellation and that have
either become due and payable or are by their terms to become
due and payable within one year (or are scheduled for redemption
within one year). We may effect a discharge by irrevocably
depositing with the trustee cash or U.S.&nbsp;government
obligations, as trust funds, in an amount certified to be
sufficient to pay when due, whether at maturity, upon redemption
or otherwise, the principal of, premium, if any, and interest on
the debt securities, and any mandatory sinking fund payments.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless otherwise provided in the applicable
prospectus supplement, we may also discharge any and all of our
obligations to holders of any series of debt securities at any
time (&#147;defeasance&#148;). We also may be released from the
obligations imposed by any covenants of any outstanding series
of debt securities and provisions of the indenture, and we may
omit to comply with those covenants without creating an Event of
Default (&#147;covenant defeasance&#148;). We may effect
defeasance and covenant defeasance only if, among other things:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we irrevocably deposit with the trustee cash or
    U.S.&nbsp;government obligations, as trust funds, in an amount
    certified to be sufficient to pay at maturity (or upon
    redemption) the principal, premium, if any, and interest on all
    outstanding debt securities of the series;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we deliver to the trustee an opinion of counsel
    from a nationally recognized law firm to the effect that the
    holders of the series of debt securities will not recognize
    income, gain or loss for U.S.&nbsp;federal income tax purposes
    as a result of the defeasance or covenant defeasance and that
    defeasance or covenant defeasance will not otherwise alter the
    holders&#146; U.S.&nbsp;federal income tax treatment of
    principal, premium, if any, and interest payments on the series
    of debt securities, which opinion, in the case of legal
    defeasance, must be based on a ruling of the Internal Revenue
    Service issued, or a change in U.S.&nbsp;federal income tax law.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although we may discharge or defease our
obligations under the indenture as described in the two
preceding paragraphs, we may not avoid, among other things, our
duty to register the transfer or exchange of any series of debt
securities, to replace any temporary, mutilated, destroyed, lost
or stolen series of debt securities or to maintain an office or
agency in respect of any series of debt securities.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Modification of the Indenture</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indenture provides that we and the trustee
may enter into supplemental indentures without the consent of
the holders of debt securities of a series to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">secure our obligations under debt securities of
    such series;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">evidence the assumption by a successor
    corporation of our obligations;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">23
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">add covenants for the protection of the holders
    of debt securities of such series;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">surrender any right, power or option conferred
    upon us in respect of debt securities of such series;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">provide for conversion rights of holders of debt
    securities of such series if any reclassification or change of
    our common stock or any consolidation, merger or sale of all or
    substantially all of our assets occurs;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">make any change to comply with the Trust
    Indenture Act, as amended, or any requirement of the SEC in
    connection with the qualification of the indenture under the
    Trust Indenture Act of 1939, as amended;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">cure any ambiguity or correct any inconsistency
    in the indenture;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">make any change that does not materially
    adversely affect the rights of holders of debt securities of
    such series;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">establish the forms or terms of debt securities
    of any series;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">evidence and provide for the acceptance of
    appointment by a successor trustee.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indenture also provides that we and the
trustee may, with the consent of the holders of not less than a
majority in aggregate principal amount of debt securities of all
series of Senior Debt Securities (voting as one class) or of all
series of Subordinated Securities (voting as one series), as the
case may be, then outstanding and affected, add any provisions
to, or change in any manner, eliminate or modify in any way the
provisions of, the indenture or modify in any manner the rights
of the holders of the debt securities of each such series. We
and the trustee may not, however, without the consent of the
holder of each outstanding debt security affected thereby:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">extend the final maturity of any debt security;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce the principal amount or premium, if any,
    of any debt security;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce the rate or extend the time of payment of
    interest on any debt security;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce any amount payable on redemption on any
    debt security;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">change the currency in which the principal (other
    than as may be provided otherwise with respect to a series),
    premium, if any, or interest is payable in respect of any debt
    security;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce the amount of the principal of any debt
    security issued with an OID that is payable upon acceleration or
    provable in bankruptcy;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">modify any of the subordination provisions or the
    definition of senior indebtedness applicable to any Subordinated
    Securities in a manner adverse to the holders of those
    securities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">alter provisions of the indenture relating to the
    debt securities not denominated in U.S.&nbsp;dollars;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">impair the right to institute suit for the
    enforcement of any payment on any debt security when due;&nbsp;or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce the percentage of holders of debt
    securities of any series whose consent is required for any
    modification of the indenture.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
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    <TD></TD>
    <TD>
    <B><I><FONT size="2">Concerning the Trustee</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indenture provides that there may be more
than one trustee under the indenture, each with respect to one
or more series of debt securities. If there are different
trustees for different series of debt securities, each trustee
will be a trustee of a trust under the indenture separate and
apart from the trust administered by any other trustee under the
indenture. Except as otherwise indicated in this prospectus or
any prospectus supplement, any action permitted to be taken by a
trustee may be taken by such trustee only with respect to the
one or more series of debt securities for which it is the
trustee under the indenture. Any trustee under the indenture may
resign or be removed with respect to one or more series of debt
securities. All payments of principal of, premium, if any, and
interest on, and all registration, transfer, exchange,
authentication, and
</FONT>

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<DIV align="left">
<FONT size="2">delivery of (including authentication and
delivery on original issuance of the debt securities), the debt
securities of a series will be effected by the trustee with
respect to that series at an office designated by the trustee in
New York, New York.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indenture contains limitations on the right
of the trustee, should it become a creditor of our company, to
obtain payment of claims in some cases or to realize on certain
property received in respect of any such claim as security or
otherwise. The trustee may engage in other transactions. If it
acquires any conflicting interest relating to any duties with
respect to the debt securities, however, it must eliminate the
conflict or resign as trustee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The holders of a majority in aggregate principal
amount of any series of debt securities then outstanding will
have the right to direct the time, method, and place of
conducting any proceeding for exercising any remedy available to
the trustee with respect to such series of debt securities,
provided that the direction would not conflict with any rule of
law or with the indenture, would not be unduly prejudicial to
the rights of another holder of the debt securities, and would
not involve any trustee in personal liability. The indenture
provides that if an Event of Default shall occur and be known to
any trustee and not be cured, the trustee must use the same
degree of care as a prudent person would use in the conduct of
his or her own affairs in the exercise of the trustee&#146;s
power. Subject to these provisions, the trustee will be under no
obligation to exercise any of its rights or powers under the
indenture at the request of any of the holders of the debt
securities, unless they shall have offered to the trustee
security and indemnity satisfactory to the trustee.
</FONT>

<DIV>&nbsp;</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">No Individual Liability of Incorporators,
    Shareholders, Officers or Directors</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indenture provides that neither our
incorporator nor any of our past, present or future
shareholders, officers or directors of our company or any
successor corporation in their capacity as such shall have any
individual liability for any of our obligations, covenants or
agreements under the debt securities or the indenture.
</FONT>

<DIV>&nbsp;</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Governing Law</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indenture and the debt securities will be
governed by, and construed in accordance with, the laws of the
State of New York.
</FONT>

<DIV align="left">
<A name='111'></A>
</DIV>

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<P align="left">
<B><FONT size="2">DESCRIPTION OF WARRANTS</FONT></B>

<DIV>&nbsp;</DIV>

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<TR>
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    <TD></TD>
    <TD>
    <B><I><FONT size="2">General</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may issue warrants for the purchase of debt
securities, preferred stock or common stock, or any combination
thereof. Warrants may be issued independently or together with
debt securities, preferred stock or common stock and may be
attached to or separate from any offered securities. Warrants
may be issued under warrant agreements issued to the holders
thereof. Alternatively, one or more series of warrants may be
issued under a separate warrant agreement to be entered into
between us and a bank or trust company, as warrant agent. Any
such warrant agent will act solely as our agent in connection
with the warrants and will not have any obligation or
relationship of agency or trust for or with any holders or
beneficial owners of warrants. This summary of certain
provisions of the warrants is not complete. For the complete
terms of a particular series of warrants, you should refer to
the prospectus supplement for that series of warrants and the
warrant agreement for that particular series.
</FONT>

<DIV>&nbsp;</DIV>

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    <TD></TD>
    <TD>
    <B><I><FONT size="2">Debt Warrants</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The prospectus supplement relating to a
particular issue of warrants to purchase debt securities will
describe the terms of the debt warrants, including the following:
</FONT>
<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the title of the debt warrants;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the offering price for the debt warrants, if any;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the aggregate number of the debt warrants;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">25
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the designation and terms of the debt securities,
    including any conversion rights, purchasable upon exercise of
    the debt warrants;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">if applicable, the date from and after which the
    debt warrants and any debt securities issued with them will be
    separately transferable;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the principal amount of debt securities that may
    be purchased upon exercise of a debt warrant and the exercise
    price for the warrants, which may be payable in cash, securities
    or other property;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the dates on which the right to exercise the debt
    warrants will commence and expire;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">if applicable, the minimum or maximum amount of
    the debt warrants that may be exercised at any one time;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">whether the debt warrants, represented by the
    debt warrant certificates or debt securities that may be issued
    upon exercise of the debt warrants, will be issued in registered
    or bearer form;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">information with respect to book-entry
    procedures, if any;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the currency or currency units in which the
    offering price, if any, and the exercise price are payable;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the redemption or call provisions, if any,
    applicable to the debt warrants;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any additional terms of the debt warrants,
    including terms, procedures, and limitations relating to the
    exchange, exercise, and settlement of the debt warrants.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Debt warrant certificates will be exchangeable
for new debt warrant certificates of different denominations.
Debt warrants may be exercised at the corporate trust office of
the warrant agent or any other office indicated in the debt
warrant certificate or the related prospectus supplement. Prior
to the exercise of their debt warrants, holders of debt warrants
will not have any of the rights of holders of the debt
securities purchasable upon exercise and will not be entitled to
payment of principal or any premium, if any, or interest on the
debt securities purchasable upon exercise.
</FONT>

<DIV>&nbsp;</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Stock Warrants</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The prospectus supplement relating to a
particular series of warrants to purchase our common stock or
preferred stock will describe the terms of the warrants,
including the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the title of the warrants;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the offering price for the warrants, if any;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the aggregate number of the warrants;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the designation and terms of the common stock or
    preferred stock that may be purchased upon exercise of the
    warrants;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">if applicable, the designation and terms of the
    securities with which the warrants are issued and the number of
    warrants issued with each security;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">if applicable, the date from and after which the
    warrants and any securities issued with the warrants will be
    separately transferable;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the number of shares of common stock or preferred
    stock that may be purchased upon exercise of a warrant and the
    exercise price for the warrants;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the dates on which the right to exercise the
    warrants shall commence and expire;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">if applicable, the minimum or maximum amount of
    the warrants that may be exercised at any one time;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the currency or currency units in which the
    offering price, if any, and the exercise price are payable;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the antidilution provisions of the warrants, if
    any;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">26
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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the redemption or call provisions, if any,
    applicable to the warrants;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any additional terms of the warrants, including
    terms, procedures, and limitations relating to the exchange,
    exercise, and settlement of the warrants.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of stock warrants will not be entitled:
</FONT>
<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">to vote, consent or receive dividends;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">receive notice as shareholders with respect to
    any meeting of shareholders for the election of our directors or
    any other matter;&nbsp;or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">exercise any rights as shareholders of our
    company.
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left">
<A name='112'></A>
</DIV>

<!-- link1 "PLAN OF DISTRIBUTION" -->

<P align="center">
<B><FONT size="2">PLAN OF DISTRIBUTION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may sell debt securities, common stock,
preferred stock or warrants to purchase debt securities, common
stock or preferred stock in one or more of the following ways
from time to time:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">to or through underwriters or dealers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">by ourself directly;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">through agents;&nbsp;or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">through a combination of any of these methods of
    sale.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A prospectus supplement relating to an offering
of offered securities will set forth the terms of such offering,
including:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the name or names of any underwriters, dealers or
    agents;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the purchase price of the offered securities and
    the proceeds to us from the sale;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any underwriting discounts and commissions or
    agency fees and other items constituting underwriters&#146; or
    agents&#146; compensation;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any initial public offering price, any discounts
    or concessions allowed or reallowed or paid to dealers, and any
    securities exchanges on which such offered securities may be
    listed.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any initial public offering prices, discounts or
concessions allowed or reallowed or paid to dealers may be
changed from time to time.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If underwriters are used in the sale, the
underwriters may acquire the offered securities for their own
account and may resell them from time to time in one or more
transactions, including negotiated transactions, at a fixed
public offering price or at varying prices determined at the
time of sale. The offered securities may be offered either to
the public through underwriting syndicates represented by one or
more managing underwriters or by one or more underwriters
without a syndicate. Unless otherwise set forth in a prospectus
supplement, any obligation of the underwriters to purchase any
series of securities will be subject to certain conditions
precedent.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with underwritten offerings of the
offered securities and in accordance with applicable law and
industry practice, underwriters may over-allot or effect
transactions that stabilize, maintain or otherwise affect the
market price of the offered securities at levels above those
that might otherwise prevail in the open market, including by
entering stabilizing bids, effecting syndicate covering
transactions or imposing penalty bids, each of which is
described below.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">A stabilizing bid means the placing of any bid,
    or the effecting of any purchase, for the purpose of pegging,
    fixing or maintaining the price of a security.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">A syndicate covering transaction means the
    placing of any bid on behalf of the underwriting syndicate or
    the effecting of any purchase to reduce a short position created
    in connection with the offering.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">27
</FONT>

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

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">A penalty bid means an arrangement that permits
    the managing underwriter to reclaim a selling concession from a
    syndicate member in connection with the offering when offered
    securities originally sold by the syndicate member are purchased
    in syndicate covering transactions.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These transactions may be effected on the Nasdaq
National Market, in the over-the-counter market or otherwise.
Underwriters are not required to engage in any of these
activities, or to continue such activities if commenced.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a dealer is used in the sale, we may sell such
offered securities to the dealer, as principal. The dealer may
then resell the offered securities to the public at varying
prices to be determined by that dealer at the time for resale.
The names of the dealers and the terms of the transaction will
be set forth in the prospectus supplement relating to that
transaction.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Offered securities may be sold directly by us to
one or more institutional purchasers, or through agents
designated by us, from time to time, at a fixed price or prices,
which may be changed, or at varying prices determined at the
time of sale. Any agent involved in the offer or sale of the
offered securities in respect of which this prospectus is
delivered will be named, and any commissions payable by us to
such agent will be set forth, in the prospectus supplement
relating to that offering. Unless otherwise indicated in such
prospectus supplement, any such agent will be acting on a best
efforts basis for the period of its appointment.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Underwriters, dealers, and agents may be entitled
under agreements entered into with us to indemnification by us
against certain civil liabilities, including liabilities under
the Securities Act, or to contribution with respect to payments
that the underwriters, dealers or agents may be required to make
in respect thereof. Underwriters, dealers, and agents may be
customers of, engage in transactions with, or perform services
for us and our affiliates from time to time in the ordinary
course of business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other than our common stock, which is listed on
the Nasdaq National Market, each of the securities issued
hereunder will be a new issue of securities, will, unless
otherwise indicated in the relevant prospectus supplement, have
no prior trading market, and may or may not be listed on a
national securities exchange or the Nasdaq National Market. Any
common stock sold pursuant to a prospectus supplement will be
listed on the Nasdaq National Market, subject to official notice
of issuance. Any underwriters to whom we sell securities for
public offering and sale may make a market in the securities,
but such underwriters will not be obligated to do so and may
discontinue any market making at any time without notice. We
cannot assure you that there will be a market for the offered
securities.
</FONT>

<DIV align="left">
<A name='113'></A>
</DIV>

<!-- link1 "LEGAL MATTERS" -->

<P align="center">
<B><FONT size="2">LEGAL MATTERS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The validity of the securities being offered
hereby is being passed upon for us, by Skadden, Arps, Slate,
Meagher&nbsp;&#38; Flom LLP, Boston, Massachusetts.
</FONT>

<DIV align="left">
<A name='114'></A>
</DIV>

<!-- link1 "EXPERTS" -->

<P align="center">
<B><FONT size="2">EXPERTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The audited financial statements incorporated in
this prospectus by reference to the Annual Report on
Form&nbsp;10-K/A Amendment No.&nbsp;2 of our company for the
year ended December&nbsp;31, 2003, except as they relate to
Amgen-Regeneron Partners for the year ended December&nbsp;31,
2001, have been audited by PricewaterhouseCoopers&nbsp;LLP, an
independent registered public accounting firm, and insofar as
they relate to Amgen-Regeneron Partners for the year ended
December&nbsp;31, 2001, by Ernst &#38; Young&nbsp;LLP,
independent auditors, whose reports thereon are incorporated by
reference herein. Such financial statements have been so
incorporated in reliance on the reports of such independent
registered public accounting firm and independent auditors given
on the authority of such firms as experts in auditing and
accounting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The financial statements of Amgen-Regeneron
Partners appearing in Regeneron Pharmaceuticals, Inc.&#146;s
Annual Report (Form&nbsp;10-K/A Amendment No.&nbsp;2) for the
year ended December&nbsp;31, 2003, have been audited by
Ernst&nbsp;&#38; Young&nbsp;LLP, independent auditors, as set
forth in their report thereon included therein and incorporated
herein by reference. Such financial statements are incorporated
herein in reliance upon the report of Ernst&nbsp;&#38;
Young&nbsp;LLP pertaining to such financial statements given on
the authority of such firm as experts in accounting and auditing.
</FONT>

<P align="center"><FONT size="2">28
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">PART&nbsp;II</FONT></B>

<DIV align="center">
<B><FONT size="2">INFORMATION NOT REQUIRED IN
PROSPECTUS</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;14.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Other Expenses of Issuance and
    Distribution</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth our expenses in
connection with the offerings described in this Registration
Statement. All expenses, other than the SEC registration fee,
are estimates.
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="81%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">SEC Registration Fee
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,540</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transfer Agents, Trustees and Depositary&#146;s
    Fees, and Expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Printing and Engraving Fees and Expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounting Fees and Expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stock Exchange Listing Fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Legal Fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rating Agency Fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Miscellaneous
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,423,540</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;15.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Indemnification of Directors and
    Officers</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Article&nbsp;Seven of our Restated Certificate of
Incorporation requires indemnification of our officers and
directors and that such indemnification be made to the fullest
extent permitted by the New York Business Corporation Law.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Section&nbsp;722 of the New York Business
Corporation Law permits a corporation to provide for the
indemnification of the members of its board of directors and its
officers against actions or proceedings, or the threat thereof,
by or in the right of the corporation. In order to receive
indemnification, such director or officer must have
(i)&nbsp;acted in good faith for a purpose which he reasonably
believed was in the best interest of the corporation, and
(ii)&nbsp;in the case of a criminal proceeding, also had no
reasonable belief that such conduct was unlawful.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Article&nbsp;IV of our By-Laws provides that the
directors and certain other personnel of our company shall be
indemnified against expenses and certain other liabilities
arising out of legal actions brought or threatened against them
for their conduct on behalf of our company, subject to certain
qualifications and provided that each such person acted in good
faith and in a manner that they reasonably believed was in our
best interest.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors,
officers or persons controlling us pursuant to the foregoing
provisions or otherwise, we have been informed that in the
opinion of the SEC such indemnification is against public policy
as expressed in the Securities Act and is therefore
unenforceable.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have agreements with some of our directors
which provide that we will indemnify them to the fullest extent
permitted by the New York Business Corporation Law. We maintain
directors&#146; and officers&#146; liability insurance which
insures against liabilities that our directors or officers may
incur in such capacities.
</FONT>

<P align="center"><FONT size="2">II-1
</FONT>

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

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;16.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Exhibits</FONT></I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="85%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">No.</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of underwriting agreement.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restated Certificate of Incorporation of
    Regeneron Pharmaceuticals, Inc.(1)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Amendment of the Certificate of
    Incorporation of Regeneron Pharmaceuticals, Inc.(2)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Amendment of the Certification of
    Incorporation of Regeneron Pharmaceuticals, Inc.(3)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Bylaws of Regeneron Pharmaceuticals, Inc.(4)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment to the Bylaws of Regeneron
    Pharmaceuticals, Inc.(5)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.6*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of indenture.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.7**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Supplemental indenture or other instrument
    creating a series of debt securities under the indenture.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.8**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of any debt security.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.9**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of preferred stock.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.10**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of any preferred stock certificate.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.11**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of warrant agreement.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.12**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of warrant certificate.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Rights Agreement, dated as of September&nbsp;20,
    1996, between Regeneron Pharmaceuticals, Inc. and Chase Mellon
    Shareholder Services LLC, as Rights Agent, including the form of
    Rights Certificate as Exhibit&nbsp;B thereto.(5)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.14</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Registration Rights Agreement, dated as of
    March&nbsp;28, 2003, by and between Novartis Pharma AG and
    Regeneron Pharmaceuticals, Inc.(6)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Stock Purchase Agreement, dated as of
    September&nbsp;5, 2003, by and between Aventis Pharmaceuticals
    Inc. and Regeneron Pharmaceuticals, Inc.(7)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Opinion of Skadden, Arps, Slate,
    Meagher&nbsp;&#38; Flom LLP as to the legality of the debt
    securities, common stock, preferred stock, and warrants.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">8</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Opinion of counsel as to certain tax matters.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Statement re: computation of ratios of earnings
    to combined fixed charges of Regeneron Pharmaceuticals, Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of PricewaterhouseCoopers LLP,
    Independent Registered Public Accounting Firm.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Ernst &#38; Young LLP, Independent
    Auditors.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.3*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Skadden, Arps, Slate,
    Meagher&nbsp;&#38; Flom LLP (included in Exhibit&nbsp;5.1).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">24</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Power of Attorney of certain officers and
    directors of Regeneron Pharmaceuticals, Inc. (see page&nbsp;II-5
    of this Form&nbsp;S-3).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">25</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Statement of Eligibility and Qualification on
    Form&nbsp;T-1 under the Trust Indenture Act of 1939, as amended,
    of Trustee under the Indenture.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">To be filed by amendment.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">**&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">To be filed by amendment or as an exhibit to a
    document to be incorporated or deemed to be incorporated by
    reference in this Registration Statement.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;10-Q
    for Regeneron Pharmaceuticals, Inc. for the quarter ended
    June&nbsp;30, 1991, filed August&nbsp;13, 1991.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;10-Q
    for Regeneron Pharmaceuticals, Inc. for the quarter ended
    September&nbsp;30, 1996, filed November&nbsp;5, 1996.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;10-K
    for Regeneron Pharmaceuticals, Inc. for the fiscal year ended
    December&nbsp;31, 2001, filed March&nbsp;22, 2002.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">II-2
</FONT>

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

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;10-K
    for Regeneron Pharmaceuticals, Inc. for the fiscal year ended
    December&nbsp;31, 1994, filed March&nbsp;30, 1995.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form 8-K for
    Regeneron Pharmaceuticals, Inc. filed November 12, 2004.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;8-A
    for Regeneron Pharmaceuticals, Inc. filed October&nbsp;15, 1996.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;10-Q
    for Regeneron Pharmaceuticals, Inc. for the quarter ended
    March&nbsp;31, 2003, filed May&nbsp;15, 2003.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(8)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;10-Q
    for Regeneron Pharmaceuticals, Inc. for the quarter ended
    September&nbsp;30, 2003, filed November&nbsp;11, 2003.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;17.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Undertakings</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(A)&nbsp;The undersigned registrant hereby
undertakes:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">To file, during any period in which offers or
    sales are being made, a post-effective amendment to this
    registration statement:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="3%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(i)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">To include any prospectus required by
    Section&nbsp;10(a)(3) of the Securities Act of 1933;
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="4%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(ii)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">To reflect in the prospectus any facts or events
    arising after the effective date of the registration statement
    (or the most recent post-effective amendment thereof) which,
    individually or in the aggregate, represent a fundamental change
    in the information set forth in the registration statement.
    Notwithstanding the foregoing, any increase or decrease in
    volume of securities offered (if the total dollar value of
    securities offered would not exceed that which was registered)
    and any deviation from the low or high end of the estimated
    maximum offering range may be reflected in the form of
    prospectus filed with the SEC pursuant to Rule&nbsp;424(b) if,
    in the aggregate, the changes in volume and price represent no
    more than a 20&nbsp;percentage change in the maximum aggregate
    offering price set forth in the &#147;Calculation of
    Registration Fee&#148; table in the effective registration
    statement.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="4%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(iii)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">To include any material information with respect
    to the plan of distribution not previously disclosed in the
    registration statement or any material change to such
    information in the registration statement;
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">provided, however, that paragraphs&nbsp;(1)(i)
    and 1(ii) do not apply if the information required to be
    included in a post-effective amendment by those paragraphs is
    contained in periodic reports filed with or furnished to the SEC
    by the registrant pursuant to Section&nbsp;13 or
    Section&nbsp;15(d) of the Securities Exchange Act that are
    incorporated by reference in the registration statement.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">That, for the purpose of determining any
    liability under the Securities Act of 1933, each such
    post-effective amendment shall be deemed to be a new
    registration statement relating to the securities offered
    therein, and the offering of such securities at that time shall
    be deemed to be the initial <I>bona fide </I>offering thereof.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">To remove from registration by means of a
    post-effective amendment any of the securities being registered
    which remain unsold at the termination of the offering.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(B)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The undersigned registrants hereby undertake
    that, for purposes of determining any liability under the
    Securities Act of 1933, each filing of the registrant&#146;s
    annual report pursuant to Section&nbsp;13(a) or
    Section&nbsp;15(d) of the Exchange Act (and, where applicable,
    each filing of an employee benefit plan&#146;s annual report
    pursuant to Section&nbsp;15(d) of the Exchange Act) that is
    incorporated by reference in the registration statement shall be
    deemed to be a new registration statement relating to the
    securities offered herein, and the offering of such securities
    at that time shall be deemed to be the initial <I>bona fide
    </I>offering thereof.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">II-3
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(C)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Insofar as indemnification for liabilities
    arising under the Securities Act of 1933 may be permitted to
    directors, officers and controlling persons of any of the
    registrants pursuant to the provisions set forth in
    Item&nbsp;15, or otherwise, each of the registrants has been
    advised that in the opinion of the SEC such indemnification is
    against public policy as expressed in the Act and is, therefore,
    unenforceable. In the event that a claim for indemnification
    against such liabilities (other than the payment by one of the
    registrants of expenses incurred or paid by a director, officer
    or controlling person of one of the registrants in the
    successful defense of any action, suit or proceeding) is
    asserted by such director, officer or controlling person in
    connection with the securities being registered, each of the
    registrants will, unless in the opinion of its counsel the
    matter has been settled by controlling precedent, submit to a
    court of appropriate jurisdiction the question whether such
    indemnification by it is against public policy as expressed in
    the Act and will be governed by the final adjudication of such
    issue.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">II-4
</FONT>

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

<DIV align="left">
<A name='116'></A>
</DIV>

<!-- link1 "SIGNATURES" -->

<P align="center">
<B><FONT size="2">SIGNATURES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the requirements of the Securities
Act of 1933, the registrant certifies that it has reasonable
grounds to believe that it meets all of the requirements for
filing on this Form&nbsp;S-3 and has duly caused this
Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the Village of
Tarrytown, State of New York, on this 14th day of December, 2004.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">REGENERON PHARMACEUTICALS, INC.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">By:&nbsp;</FONT></TD>
    <TD align="center">
    <FONT size="2">/s/ MURRAY A. GOLDBERG
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="right">
    <FONT size="2"><HR size="1" align="right" width="96%" noshade>
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Murray A. Goldberg
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <I><FONT size="2">Senior Vice President, Finance&nbsp;&#38;
    Administration</FONT></I></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <I><FONT size="2">Chief Financial Officer,</FONT></I></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <I><FONT size="2">Treasurer and Assistant Secretary</FONT></I></TD>
</TR>

</TABLE>

<P align="center">
<B><FONT size="2">POWER OF ATTORNEY</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">KNOW ALL PERSONS BY THESE PRESENTS, that each
person whose signature appears below constitutes and appoints
Murray A. Goldberg and Leonard S.
Schleifer,&nbsp;M.D.,&nbsp;Ph.D. and each of them individually,
as his or her true and lawful attorneys-in-fact and agents with
full power of substitution and resubstitution, for him or her
and in his or her name, place, and stead, in any and all
capacities to sign the Registration Statement filed herewith and
any or all amendments to said Registration Statement (including
post-effective amendments and registration statements filed
pursuant to Rule&nbsp;462(b) under the Securities Act of 1933,
as amended, and otherwise), and to file the same, with all
exhibits thereto, and other documents in connection therewith,
with the Securities and Exchange Commission granting unto said
attorneys-in-fact and agents the full power and authority to do
and perform each and every act and thing requisite and necessary
to be done in and about the foregoing, as full to all intents
and purposes as he might or could do in person, hereby ratifying
and confirming all that said attorneys-in-fact and agents or any
of them, or his or her substitute, may lawfully do or cause to
be done by virtue thereof.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the requirements of the Securities
Act, this Registration Statement has been signed below by the
following persons in the capacities indicated on
December&nbsp;14, 2004.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="49%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ LEONARD S.
    SCHLEIFER,&nbsp;M.D.,&nbsp;PH.D.<BR>
    <HR size="1" noshade>Leonard S. Schleifer,&nbsp;M.D.,&nbsp;Ph.D.
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">President, Chief Executive Officer and
    Director<BR>
    (Principal Executive Officer)
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ MURRAY A. GOLDBERG<BR>
    <HR size="1" noshade>Murray A. Goldberg
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Senior Vice President, Finance&nbsp;&#38;
    Administration,<BR>
    Chief Financial Officer, Treasurer and Assistant Secretary
    (Principal Financial Officer)
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ DOUGLAS S. MCCORKLE<BR>
    <HR size="1" noshade>Douglas S. McCorkle
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Controller and Assistant Treasurer<BR>
    (Chief Accounting Officer)
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ P. ROY VAGELOS&nbsp;M.D.<BR>
    <HR size="1" noshade>P. Roy Vagelos,&nbsp;M.D.
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Chairman of the Board
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ CHARLES A. BAKER<BR>
    <HR size="1" noshade>Charles A. Baker
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">II-5
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="70%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="13%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ MICHAEL S. BROWN,&nbsp;M.D.<BR>
    <HR size="1" noshade>Michael S. Brown,&nbsp;M.D.
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ ALFRED G. GILMAN,&nbsp;M.D.<BR>
    <HR size="1" noshade>Alfred G. Gilman,&nbsp;M.D.
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ JOSEPH L. GOLDSTEIN,&nbsp;M.D.<BR>
    <HR size="1" noshade>Joseph L. Goldstein,&nbsp;M.D.
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ ARTHUR F. RYAN<BR>
    <HR size="1" noshade>Arthur F. Ryan
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ ERIC M. SHOOTER,&nbsp;M.D.<BR>
    <HR size="1" noshade>Eric M. Shooter,&nbsp;M.D.
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ GEORGE L. SING<BR>
    <HR size="1" noshade>George L. Sing
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ GEORGE D.
    YANCOPOULOS,&nbsp;M.D.,&nbsp;PH.D.<BR>
    <HR size="1" noshade>George D. Yancopoulos,&nbsp;M.D.,&nbsp;Ph.D.
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">II-6
</FONT>

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

<DIV align="left">
<A name='115'></A>
</DIV>

<!-- link1 "EXHIBIT INDEX" -->

<P align="center">
<B><FONT size="2">EXHIBIT INDEX</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="85%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">No.</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of underwriting agreement.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restated Certificate of Incorporation of
    Regeneron Pharmaceuticals, Inc.(1)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Amendment of the Certificate of
    Incorporation of Regeneron Pharmaceuticals, Inc.(2)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Amendment of the Certification of
    Incorporation of Regeneron Pharmaceuticals, Inc.(3)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Bylaws of Regeneron Pharmaceuticals, Inc.(4)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment to the Bylaws of Regeneron
    Pharmaceuticals, Inc.(5)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.6*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of indenture.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.7**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Supplemental indenture or other instrument
    creating a series of debt securities under the indenture.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.8**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of any debt security.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.9**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of preferred stock.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.10**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of any preferred stock certificate.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.11**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of warrant agreement.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.12**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of warrant certificate.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Rights Agreement, dated as of September&nbsp;20,
    1996, between Regeneron Pharmaceuticals, Inc. and Chase Mellon
    Shareholder Services LLC, as Rights Agent, including the form of
    Rights Certificate as Exhibit&nbsp;B thereto.(5)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.14</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Registration Rights Agreement, dated as of
    March&nbsp;28, 2003, by and between Novartis Pharma AG and
    Regeneron Pharmaceuticals, Inc.(6)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Stock Purchase Agreement, dated as of
    September&nbsp;5, 2003, by and between Aventis Pharmaceuticals
    Inc. and Regeneron Pharmaceuticals, Inc.(7)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Opinion of Skadden, Arps, Slate,
    Meagher&nbsp;&#38; Flom LLP as to the legality of the debt
    securities, common stock, preferred stock, and warrants.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">8</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Opinion of counsel as to certain tax matters.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Statement re: computation of ratios of earnings
    to combined fixed charges of Regeneron Pharmaceuticals, Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of PricewaterhouseCoopers LLP,
    Independent Registered Public Accounting Firm.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Ernst &#38; Young LLP, Independent
    Auditors.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Skadden, Arps, Slate,
    Meagher&nbsp;&#38; Flom LLP (included in Exhibit&nbsp;5.1).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">24</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Power of Attorney of certain officers and
    directors of Regeneron Pharmaceuticals, Inc. (see page&nbsp;II-5
    of this Form&nbsp;S-3).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">25</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Statement of Eligibility and Qualification on
    Form&nbsp;T-1 under the Trust Indenture Act of 1939, as amended,
    of Trustee under the Indenture.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">To be filed by amendment.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">**&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">To be filed by amendment or as an exhibit to a
    document to be incorporated or deemed to be incorporated by
    reference in this Registration Statement.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;10-Q
    for Regeneron Pharmaceuticals, Inc. for the quarter ended
    June&nbsp;30, 1991, filed August&nbsp;13, 1991.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;10-Q
    for Regeneron Pharmaceuticals, Inc. for the quarter ended
    September&nbsp;30, 1996, filed November&nbsp;5, 1996.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;10-K
    for Regeneron Pharmaceuticals, Inc. for the fiscal year ended
    December&nbsp;31, 2001, filed March&nbsp;22, 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;10-K
    for Regeneron Pharmaceuticals, Inc. for the fiscal year ended
    December&nbsp;31, 1994, filed March&nbsp;30, 1995.
    </FONT></TD>
</TR>

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

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;8-K
    for Regeneron Pharmaceuticals, Inc. filed November&nbsp;12, 2004.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;8-A
    for Regeneron Pharmaceuticals, Inc. filed October&nbsp;15, 1996.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;10-Q
    for Regeneron Pharmaceuticals, Inc. for the quarter ended
    March&nbsp;31, 2003, filed May&nbsp;15, 2003.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(8)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the Form&nbsp;10-Q
    for Regeneron Pharmaceuticals, Inc. for the quarter ended
    September&nbsp;30, 2003, filed November&nbsp;11, 2003.
    </FONT></TD>
</TR>

</TABLE>
</BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.1
<SEQUENCE>2
<FILENAME>y69426exv12w1.txt
<DESCRIPTION>STATEMENT RE: COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES
<TEXT>
<PAGE>
                                                                    EXHIBIT 12.1

                         REGENERON PHARMACEUTICALS, INC.
            Computation of Ratio of Earnings to Combined Fixed Charges
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                                                                        Nine months
                                                                              Years ended December 31,                     ended
                                                     ----------------------------------------------------------------  September 30,
                                                           1999        2000        2001         2002        2003           2004
                                                          ---------   ---------   ---------   ----------   ----------  -------------
<S>                                                       <C>         <C>         <C>         <C>          <C>         <C>
Earnings:
      Income (loss) from continuing operations
        before loss from equity investee                  ($18,911)   ($17,077)   ($75,178)   ($124,350)   ($107,395)     $38,913
      Fixed charges                                          1,278       1,309       4,103       14,728       15,151       11,363
      Amortization of capitalized interest                                                                        33           58
      Interest capitalized                                                                         (222)        (276)
                                                     -------------------------------------------------------------------------------

Adjusted earnings                                         ($17,633)   ($15,768)   ($71,075)   ($109,844)    ($92,487)     $50,334
                                                     ===============================================================================

Fixed charges:
      Interest expense                                        $284        $281      $2,868      $12,902      $12,975       $9,944
      Interest capitalized                                                                          222         276
      Assumed interest component of rental charges             994       1,028       1,235        1,604        1,900        1,419
                                                     -------------------------------------------------------------------------------

Total fixed charges                                         $1,278      $1,309      $4,103      $14,728      $15,151      $11,363
                                                     ===============================================================================

Ratio of earnings to fixed charges                          (A)         (A)         (A)          (A)         (A)             4.43

(A)     Due to the registrant's losses for the years ended December 31, 1999,
        2000, 2001, 2002, and 2003, the ratio coverage was less than 1:1. To
        achieve a coverage ratio of 1:1, the registrant must generate additional
        earnings of the amounts shown in the table below.
</TABLE>

<TABLE>
<CAPTION>
                                                                                Years ended December 31,
                                                     ----------------------------------------------------------------------------
                                                     1999             2000            2001             2002             2003
                                                     ----             ----            ----             ----             ----
<S>                                                <C>              <C>             <C>             <C>               <C>
        Coverage deficiency                        $18,911          $17,077         $75,178         $124,572          $107,638
</TABLE>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>3
<FILENAME>y69426exv23w1.txt
<DESCRIPTION>CONSENT OF PRICEWATERHOUSECOOPERS LLP
<TEXT>
<PAGE>
                                                                    Exhibit 23.1


            CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
            --------------------------------------------------------

We hereby consent to the incorporation by reference in this Registration
Statement on Form S-3 of our report dated January 30, 2004, except for the last
paragraph of Note 11b as to which the date is February 27, 2004, relating to the
financial statements, which appears in Regeneron Pharmaceuticals, Inc. Annual
Report on Form 10-K/A Amendment No. 2 for the year ended December 31, 2003. We
also consent to the reference to us under the heading "Experts" in such
Registration Statement.

                                         PricewaterhouseCoopers LLP

New York, New York
December 13, 2004

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>4
<FILENAME>y69426exv23w2.txt
<DESCRIPTION>CONSENT OF ERNST & YOUNG LLP
<TEXT>
<PAGE>
                                                                    EXHIBIT 23.2

               CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS

We consent to the reference to our firm under the caption "Experts" in the
Registration Statement of Regeneron Pharmaceuticals, Inc. for the registration
of $200,000,000 of common stock, preferred stock, debt securities, and/or
warrants and to the incorporation by reference therein of our report dated
February 4, 2002, with respect to the financial statements of Amgen-Regeneron
Partners for the year ended December 31, 2001 included in the Annual Report
(Form 10-K/A Amendment No. 2) of Regeneron Pharmaceuticals, Inc. for the year
ended December 31, 2003, filed with the Securities and Exchange Commission.

                                             /s/ Ernst & Young LLP


Los Angeles, California
December 13, 2004

</TEXT>
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