EXHIBIT 10.9

                                           HANA BIOSCIENCES, INC.
                                           400 Oyster Point Boulevard, Suite 215
                                           South San Francisco, CA 94080

                                October 21, 2004

Dr. Gregory I. Berk, M.D.
1999 Broadway
San Francisco, CA 94109


Dear Greg:

         On behalf of Hana Biosciences,  Inc. (the "Company"), I wanted to again
let you know how pleased we are that you will be joining the Company as its Vice
President,  Chief Medical Officer. As you know, you and the Company have entered
into  an  Employment   Agreement   dated  October  21,  2004  (the   "Employment
Agreement"),  which sets forth certain terms and  conditions of your  employment
with the Company. In addition to the terms of the Employment Agreement,  you and
the Company have also agreed as follows:

         1.  Housing  Subsidy.  You are  entitled to receive  from the Company a
housing  subsidy in an amount  not to exceed  the  annual  sum of Seventy  Three
Thousand Dollars ($73,000) (the "Housing Subsidy"). The Housing Subsidy shall be
reviewed  annually  by the CEO  and  Board  of  Directors  (or the  Compensation
Committee thereof) during the Term (as defined in the Employment Agreement). The
Housing  Subsidy shall be payable on a monthly  basis,  on the first day of each
calendar month.

         2. Signing Bonus. The Company will pay you a bonus of $25,000 within 10
days following the "Effective Date" (as defined in the Employment  Agreement) as
reimbursement for moving expenses.

         3.  Incentive  Bonus.  You will also be  eligible  to receive  periodic
incentive  bonuses based upon the successful  accomplishment of milestones to be
determined by the Chief Executive Officer of the Company.  Target bonus for 2004
is 30% of the  prorated  amount of your Base  Salary  paid in 2004,  and will be
determined by the Board thereafter.

         4.  Withholding.  The Company shall  withhold all  applicable  federal,
state and local  taxes and  social  security  and such  other  amounts as may be
required by law from all amounts payable to you under this letter agreement.

         5. Stock  Options.  As additional  compensation  for the services to be
rendered by you pursuant to the Employment Agreement, the Company shall grant to
you stock options ("Stock  Options") to purchase  150,000 shares of Common Stock
of the  Company.  The Stock  Options  shall vest,  if at all, in three (3) equal
installments  on each  anniversary of your employment or the Effective Date with
an exercise price of $2.39. In connection with and as a condition to such grant,
you shall enter into the Company's  standard stock option  agreement  which will
incorporate  the  foregoing  vesting  schedule  and  the  Stock  Option  related
provisions  contained  in Section 9 of the  Employment  Agreement.  The Board of
Directors (or the  Compensation  Committee  thereof)  will  annually  review the
number of Stock Options granted to you to determine  whether an additional grant
of stock options is warranted.

<PAGE>

         Please  acknowledge  your agreement to the above terms by signing below
and returning to me at your earliest possible convenience.

                                    Sincerely,

                                    Hana Biosciences, Inc.


                                    By: /s/ Mark J. Ahn
                                        ---------------------------------------
                                        Mark J. Ahn
                                        Its President & Chief Executive Officer


                                 Acknowledgment

         I understand,  acknowledge  and agree to the terms and  conditions  set
forth in this letter agreement.

Dated: October 26, 2004                 /s/ Gregory I. Berk
                                        ---------------------------------------
                                        Gregory I. Berk, M.D.