Commitments and Contingencies

9 Months Ended

Sep. 30, 2011

Commitments and Contingencies

10.   Commitments and Contingencies

Technology License – Related Party - The Company has negotiated exclusive licenses from the MD Anderson Cancer Center to develop drug delivery technology for antisense and siRNA drug products and to develop liposome tumor targeting technology.  These licenses require, among other things, the Company to reimburse MD Anderson for ongoing patent expense.  Accrued license payments totaling $50,000 are included in Current Liabilities as of September 30, 2011.  As of September 30, 2011, the Company estimates reimbursable past patent expenses will total approximately $100,000 for the antisense license.  The Company will be required to pay when invoiced the patent expenses at the rate of $25,000 per quarter.

Drug Supplier Project Plan - In June of 2008, Bio-Path entered into a project plan agreement with a contract drug manufacturing supplier for delivery of drug product to support commencement of the Company’s Phase I clinical trial of its first cancer drug product.  The Company commenced this trial and was enrolling patients by the end of the second quarter 2010.  Previously in 2008 and 2009, the Company paid $608,440 to this manufacturer and its drug substance raw material supplier.  During the first quarter 2011, $88,400 previously carried on the balance sheet as of December 31, 2010 as prepaid drug product for testing was charged to R&D expense after the manufacturer delivered the final lot of drug product under this contract to the Company.  As of June 30, 2011, there were no further obligations under this drug supplier project plan with the contract manufacturer.  Subsequently, in October of 2011, the Company entered into a new project plan agreement with its contract manufacturing supplier for a batch of drug product with expected delivery by year end.  The project plan requires the company to pay the supplier $177,440 for this drug product.