Exhibit 10.26

                          AXIOM CAPITAL MANAGEMENT INC.
                           780 THIRD AVENUE, 43 FLOOR
                               NEW YORK, NY 10017

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                                                                    JUNE 5, 2007

SENT VIA FAX AND EMAIL
----------------------

Ronald H. Lane PH.D.
Chief Executive Officer
Synovics Pharmaceuticals, Inc.
2415 East Camelback Road - Suite 700

Phoenix, AZ 85016

Dear Ronald:

         Axiom Capital Management Inc. (the "PLACEMENT AGENT") is pleased to act
as  placement  agent  to  Synovics  Pharmaceuticals,  Inc.  and  certain  of its
subsidiaries (the "COMPANY") in connection with the following transactions:  (i)
a  $15,000,000  debt  financing  with  Greenbridge   Capital  (the  "GREENBRIDGE
FINANCING"  and the  securities  placed  in  such  financing,  the  "GREENBRIDGE
SECURITIES")  (ii) a placement of up to $4,500,000 in secured  bridge notes (the
"BRIDGE NOTES") which will  automatically  convert into  securities  received by
investors in the  Convertible  Preferred  Financing  (defined  below) along with
warrants to purchase shares of the Company's common stock (the  "Warrants",  and
such  financing,  the "BRIDGE  ROUND") (iii) an offering of up to $16,000,000 in
convertible  preferred shares (the "CONVERTIBLE  PREFERRED STOCK") including the
principal amount of Bridge Notes converted into Convertible  Preferred Stock and
Warrants (the "WARRANTS"  together with the  Convertible  Preferred  Stock,  the
"SECURITIES") to accredited  investors  pursuant to mutual agreeable terms to be
negotiated with investors (such offering, the "CONVERTIBLE PREFERRED FINANCING")
and (iv) the  conversion of up to $4,545,000 of  outstanding  secured notes (the
"INDIGO BRIDGE  NOTES") into  Convertible  Preferred  Stock of the Company (such
transaction,  the  "CONVERSION OF INDIGO BRIDGE  NOTES").  Each of the Placement
Agent  and  the  Company  may be  referred  to  individually  as a  "Party"  and
collectively as the "PARTIES".  This engagement letter may be referred to as the
"AGREEMENT".  Each  of the  Greenbridge  Financing,  the  Bridge  Round  and the
Convertible  Preferred  Financing  may be  referred  to as a  "TRANSACTION"  and
collectively as the "Transactions".

         In our  capacity as your  placement  agent we will have no authority to
commit the Company in any fashion.  All decisions  will remain with you and your
Board in your sole and absolute discretion.

         The Company  agrees to retain the  Placement  Agent for a period of six
(6)  months  from  the date  hereof  for the  purposes  described  above,  on an
exclusive  basis.  The period may be extended by mutual  agreement,  and earlier
termination  is permitted by either party upon fifteen (15) days written  notice
to the other. In addition, the Placement Agent may retain sub-placement


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agents  subject to the Company's  prior consent which shall not be  unreasonably
withheld.  Prior to the closing of the Greenbridge Financing,  the Parties shall
execute a  Placement  Agency  Agreement  covering  all  Transactions  containing
customary  representations  and warranties in a form reasonably  satisfactory to
the Placement Agent.

         Upon closing of the Transactions, the Placement Agent shall receive the
following fees:

         A.    CASH FEES.

               i.   At each closing of the Greenbridge Financing,  the Placement
                    Agent will  receive a cash fee equal to two percent  (2%) of
                    the aggregate  purchase price of the Greenbridge  Securities
                    sold at such closing.


               ii.  At each closing of the Bridge  Round,  the  Placement  Agent
                    will  receive a cash fee equal to ten  percent  (10%) of the
                    aggregate  purchase  price of the Bridge  Notes sold at such
                    closing.

               iii. At each closing of the Convertible Preferred Financing,  the
                    Placement Agent will receive a cash fee equal to ten percent
                    (10%) of the  aggregate  purchase  price of the  Convertible
                    Preferred Stock sold at such closing.

               iv.  The  Placement  Agent shall receive a cash fee equal to four
                    percent  (4%) of the  aggregate  face  value  of the  Indigo
                    Bridge Notes converted into  Convertible  Preferred Stock of
                    the Company.

         B.    WARRANTS.

               i.   The  Placement  Agent shall  receive  warrants  granting the
                    Placement  Agent the right to purchase  four percent (4%) of
                    the number of shares into which the  Greenbridge  Securities
                    purchased by investors  introduced by the Placement Agent in
                    the Greenbridge Financing are convertible.

               ii.  The  Placement  Agent shall  receive  warrants  granting the
                    Placement  Agent the right to purchase ten percent  (10%) of
                    the number of shares into which the Bridge  Notes  purchased
                    by investors introduced by the Placement Agent in the Bridge
                    Round are convertible.

               iii. The  Placement  Agent shall  receive  warrants  granting the
                    Placement  Agent the right to purchase ten percent  (10%) of
                    the number of shares  into which the  Convertible  Preferred
                    Stock  purchased by investors  introduced  by the  Placement
                    Agent   in   the   Convertible   Preferred   Financing   are
                    convertible.

               iv.  The  Placement  Agent shall  receive  warrants  granting the
                    Placement  Agent the right to purchase  four percent (4%) of
                    the number of common  shares  into  which the Indigo  Bridge
                    Notes are converted.

         C.    EXPENSES.  The Company  hereby  agrees to reimburse the Placement
               Agent for all out-of-pocket  costs,  including but not limited to
               travel  expenses and legal fees incurred in  connection  with the
               Transactions including any post-closing expenses.

         Upon  expiration  of  this  Agreement,  or if  the  Company  elects  to
terminate this  Agreement,  the above provision with respect to fees shall apply
nevertheless with respect to any transaction concluded by the Company within one
year following such expiration or termination

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with any party  introduced to the Company by the  Placement  Agent or with which
the  Placement  Agent has  participated  in material  discussions  concerning  a
proposed  transaction.  Upon any expiration or  termination by the Company,  the
Placement Agent shall, if requested in writing by the Company,  promptly provide
the Company with a list of any such parties.  Regardless of the  completion of a
transaction,  the Company  agrees to reimburse the  Placement  Agent for all its
out-of-pocket  expenses  incurred in connection with this engagement,  including
reasonable fees and disbursements of counsel.

         The Company agrees to furnish or cause to be furnished to the Placement
Agent any information  concerning the Company that the Placement Agent considers
necessary  for the proper  performance  of its services  hereunder.  The Company
agrees that all such information shall be complete,  accurate and not misleading
and will keep the Placement  Agent promptly and fully  informed of  developments
which might affect the accuracy or  completeness of such  information.  We agree
that we will treat all  material  received  from you in a strictly  confidential
manner and will disclose such  information  only with the prior  approval of the
Company, except as otherwise required by law or legal process.

         The Company agrees to indemnify and hold harmless the Placement  Agent,
its members, employees and agents (collectively, the "INDEMNIFIED PARTIES") from
and  against  any  losses,  claims,  damages  or  liabilities  (or  actions,  or
proceedings, in respect thereof) related to or arising out of this engagement or
the  Placement  Agent's role in  connection  therewith  and will  reimburse  the
Indemnified  Parties for all related  expenses  (including  fees and expenses of
legal counsel) as they are incurred in connection with investigating,  preparing
or defending any such action,  proceeding or claim, except that the Company will
not be responsible to any Indemnified Party for any claims, liabilities,  losses
or  damages  to the  extent  they  are  finally  determined  by a  court  having
jurisdiction  (after all  applicable  periods  for appeal  have  lapsed) to have
resulted  primarily  from the gross  negligence  or willful  misconduct  of such
Indemnified  Party.  The  foregoing  provisions  of this  paragraph  shall be in
addition to any right that the  Indemnified  Parties and/or the Company may have
in common law or  otherwise.  The  provisions  of this  paragraph  shall survive
expiration or termination of this Agreement.

         This   constitutes   the  entire   agreement   between   the   Parties,
incorporating  all discussions  between us, and may be amended only by a writing
executed by both Parties. This Agreement shall be interpreted in accordance with
the laws of the State of New York,  without regard to principles of conflicts of
laws, and shall inure to the benefit of our successors and assigns.

                           [SIGNATURE PAGE TO FOLLOW]


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         If the foregoing  correctly  sets forth the  understanding  between us,
please so indicate by signing below.

                                       Very truly yours,

                                       AXIOM CAPITAL MANAGEMENT, INC.


                                       By:  /s/ Mark Martino
                                       ------------------------------
                                       Name: Mark Martino

                                       Title: President

Agreed to and accepted this
15 day of June , 2007

SYNOVICS PHARMACEUTICALS, INC.

By: /s/ Ronald H. Lane
    --------------------------------
Name: Ronald H. Lane Ph. D.
Title: Chief Executive Officer


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