YM BioSciences Inc.(YMI) AT 1.50

Fundamental: 8
Chart: 7

March 20, 2007

YM BioSciences, Inc., a development stage biopharmaceutical company, engages in the research and development of products primarily for the treatment of cancer. Its product candidates in the clinical stage of development include Tesmilifene, Nimotuzumab, AeroLEF, and Norelin.

The lead drug Tesmilifene is already halted on Jan 30, 2007. The Data Safety Monitoring Board advised the Company to stop the trial based on an interim analysis of 351 events, indicating it is very unlikely significant differences in overall survival will be shown between treatment arms as the data mature. The share price dropped more than 50%.

YMI still has two other drugs in the Phase III and Phase II trial.

Nimotuzumab:
- During the quarter, global development of nimotuzumab in multipletumor types, including pediatric and adult glioma, pancreatic cancer, prostate cancer, non-small cell cancer, esophageal cancer, cervical cancer, and breast cancer, continued through a consortium of international development partners. Enrollment should be completed during the first half of 2007 in a pivotal Phase III trial of nimutuzumab as first-line therapy in pediatric pontine glioma being conducted by\ Oncoscience AG in Germany. YM BioSciences is in the planning stages of a Phase II study in the same indication in the United States and Canada.

AeroLEF(TM):
- Final results from a two-part Phase IIb trial (DLKLEF-AP4) in post- surgical pain are expected in the first half of 2007. The second part of this study, still underway, is a randomized, double-blind, placebo controlled trial of 99 patients designed to evaluate the safety and efficacy of AeroLEF(TM) for the management of pain following elective orthopedic surgery. Results from Part I of the study, an open-label segment, were presented at the American Society of Anesthesiologists (ASA) Annual Meeting in October, 2006. These data suggested that inhaled AeroLEF(TM) was well tolerated and produced clinically meaningful, highly individualized analgesia for acute post-surgical pain.

As at December 31, 2006 the Company had cash, cash equivalents and short-term deposits totaling $86.0 million and accounts payable and accrued liabilities of $2.1 million compared to $88.3 million and $3.7 million respectively at June 30, 2006. It has about $1.35 cash/share and and will have enough cash to last another 2 years.

YMI already formed a bottom at $1.50 and now forming a base around $1.50. YMI should trade similar to THLD's pattern, and the 3 months target is $2.00 and possibly much higher. Stop loss at $1.38.

Fair Disclosure: Do not hold a long position.