In the year since our last annual report, we have taken significant strides in our journey to build upon the success of Tarceva and establish a top-tier biotechnology organization capable of delivering long-term sustainable growth and value creation to our shareholders. Our spirit, however, remains the same, rooted in high-quality science and focused on shaping medicines that change the lives of patients suffering from diseases that represent major unmet medical needs. We are pleased to tell you here how and why OSI has evolved, and how we plan to work hard on your behalf to become an even better and more responsive company in 2006 and beyond.

If 2004 started the “transformation” of OSI from a biotechnology company built on promise and potential into one of true substance, then 2005 moved that process a long way forward. It was a year during which we took major, concrete steps to meet our long-term objective: become a scientifically strong and financially successful top-tier biopharmaceutical company that discovers, develops and commercializes innovative molecular targeted therapies. The therapies we concentrate on specifically address three of the world’s most important – and increasingly prolific – disease areas: oncology, diabetes and obesity, and ophthalmology. There is little doubt that demand will increase for medicines that address these particular unmet patient needs.

We at OSI believe our research and development focus on molecular pathways that can be broadly leveraged in the discovery of innovative therapies addressing all three disease areas. With the recent addition to our oncology franchise of the ophthalmology group from Eyetech Pharmaceuticals, and the consolidation of the diabetes and obesity group at Prosidion into OSI, we have now created the business, operational and scientific framework necessary to capitalize on a tremendous opportunity to help patients.