##### Table of Contents









SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934    
|          
|           |  | For the fiscal year ended December 31, 2004                                                 
|          
|or        
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934
|          
|           |  | For the transition period
    from           to           .                                 

Commission file number: 000-22891


Corixa Corporation


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                         
|------------------------------------------------------------------ |  | ----------------------------------------
|Delaware                                                           |  | 91-1654387                              
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
    Identification No.)

1900 9th Avenue, Suite 1100


Seattle, WA 98101


(Address of principal executive offices, including zip
code)


Registrants telephone number, including area code:


(206) 366-3700


Securities registered pursuant to Section 12(b) of the
Act:


None


Securities registered pursuant to Section 12(g) of the
Act:


Common Stock, $0.001 par value per share


þ o


þ


þ o






DOCUMENTS INCORPORATED BY REFERENCE:














---



CORIXA CORPORATION


FORM 10-K


FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004


TABLE OF CONTENTS







|              |  |                                                                                                                      |    |      |    | 
|------------- |  | -------------------------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|              |  |                                                                                                                      |    | Page |   
|              |  |                                                                                                                      |    |      |   
|PART I       
|Item 1.       |  | Business                                                                                                             |    |      | 2  | 
|Item 2.       |  | Properties                                                                                                           |    |      | 18 | 
|Item 3.       |  | Legal Proceedings                                                                                                    |    |      | 18 | 
|Item 4.       |  | Submissions of Matters to a Vote of
    Security Holders                                                             |    |      | 18 | 
|             
|PART II      
|Item 5.       |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |    |      | 18 | 
|Item 6.       |  | Selected Consolidated Financial Data                                                                                 |    |      | 19 | 
|Item 7.       |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |    |      | 21 | 
|Item 7A.      |  | Quantitative and Qualitative Disclosure
    About Market Risk                                                        |    |      | 34 | 
|Item 8.       |  | Financial Statements and Supplementary
    Data                                                                      |    |      | 50 | 
|Item 9.       |  | Changes in and Disagreements with
    Accountants and Financial Disclosure                                           |    |      | 80 | 
|Item 9A.      |  | Controls and Procedures                                                                                              |    |      | 80 | 
|             
|PART III     
|Item 10.      |  | Directors and Executive Officers of the
    Registrant                                                               |    |      | 80 | 
|Item 11.      |  | Executive Compensation                                                                                               |    |      | 80 | 
|Item 12.      |  | Security Ownership of Certain Beneficial
    Owners and Management                                                   |    |      | 80 | 
|Item 13.      |  | Certain Relationships and Related
    Transactions                                                                   |    |      | 80 | 
|Item 14.      |  | Principal Accounting Fees and Services                                                                               |    |      | 81 | 
|             
|PART IV      
|Item 15.      |  | Exhibits and Financial Statement
    Schedules                                                                       |    |      | 81 | 
|Signatures    |  |                                                                                                                      | 88 |     
|EXHIBIT 10.17
|EXHIBIT 10.18
|EXHIBIT 10.19
|EXHIBIT 10.47
|EXHIBIT 10.76
|EXHIBIT 21.1 
|EXHIBIT 23.1 
|EXHIBIT 31.1 
|EXHIBIT 31.2 
|EXHIBIT 32.1 







1



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##### Table of Contents






PART I






| |   |                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | information concerning possible or assumed future results of
    operations, trends in financial results and business plans,
    including those relating to earnings growth and revenue growth;                
|
| |  | statements about the level of our costs and operating expenses
    relative to our revenue, and about the expected composition of
    our revenue;                                                              
|
| |  | statements about our product development schedule;                                                                                                                                                              
|
| |  | statements about our expectations for regulatory approval of any
    of our product candidates;                                                                                                                 
|
| |  | statements regarding expected payments under collaboration
    agreements;                                                                                                                                      
|
| |  | statements about our future capital requirements and the
    sufficiency of our cash, cash equivalents, investments and
    available equity line facilities and bank borrowings to meet
    these requirements;
|
| |  | statements about our future operational and manufacturing
    capabilities;                                                                                                                                     
|
| |  | other statements about our plans, objectives, expectations and
    intentions; and                                                                                                                              
|
| |  | other statements that are not historical facts.                                                                                                                                                                 










|        |         
|------- | --------
|Item 1. | Business

Overview






| |   |                                                                                                                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Vaccine Adjuvants  compounds or additives that, when
    combined with a vaccine, boost the bodys immune response
    to antigens contained in the vaccine; and                                                                                                                                              
|
| |  | TLR4 agonists and antagonists  compounds that
    interact with a type of cell surface receptor that recognizes
    distinct molecular signatures presented by invading pathogens
    and generates an immune response. These responses may be useful
    in the prevention and/or therapy of many conditions,

2



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| |  |                                                                                                                                             
| |  | --------------------------------------------------------------------------------------------------------------------------------------------
| |  | including seasonal allergic rhinitis, broad infection
    prevention, chronic obstructive pulmonary disease and
    inflammatory conditions.





Product Development






| |   |                                                                                    
| | - | -----------------------------------------------------------------------------------
| |  | adjuvants designed to increase the effectiveness of our
    partners vaccines; and
|
| |  | TLR4 agonists and antagonists designed to regulate innate immune
    responses.    





| |   |                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | GSKs prophylactic vaccine for the prevention of Hepatitis
    B in certain high-risk patients contains our MPL adjuvant and
    has been approved for sale in Europe;                                    
|
| |  | Allergy Therapeutics Ltd.s, or ATLs, allergy
    vaccine, contains our MPL adjuvant and has been approved for
    sale on a named patient basis in Germany, Spain, Italy and the
    United Kingdom; and
|
| |  | Berna Biotechs prophylactic vaccine for the prevention of
    Hepatitis B infection contains our synthetic RC-529 adjuvant and
    has been approved for sale in Argentina.                              





|          |                                                   |         |                                                          |                   |                                     |         |    
|--------- | ------------------------------------------------- | ------- | -------------------------------------------------------- | ----------------- | ----------------------------------- | ------- | ---
|Product   |                                                   | Disease |                                                          | Development Phase |                                     | Partner
|          |                                                   |         |                                                          |                   |                                     |        
|Adjuvants |                                                   |         |                                                          |                   |                                     |        
|          | MPL adjuvant component in GSKs Fendrix vaccine   |         | Hepatitis B in certain high- risk patients               |                   | Approved in European Union, or E.U. |         | GSK
|          | MPL adjuvant component in GSKs Cervarix vaccine  |         | Human Papillomavirus, or HPV, infection, cervical cancer |                   | Two GSK Phase III trials            |         | GSK
|          | MPL adjuvant component in GSKs Simplirix vaccine |         | Herpes Simplex Virus, or HSV                             |                   | GSK Phase III trial                 |         | GSK

3



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|                     |                                                                   |                            |                                                               |                                  |                                                                                                |             |                     
|-------------------- | ----------------------------------------------------------------- | -------------------------- | ------------------------------------------------------------- | -------------------------------- | ---------------------------------------------------------------------------------------------- | ----------- | --------------------
|Product              |                                                                   | Disease                    |                                                               | Development Phase                |                                                                                                | Partner    
|                     |                                                                   |                            |                                                               |                                  |                                                                                                |            
|                     | MPL adjuvant component in GSKs Mosquirix malaria vaccine         |                            | Malaria                                                       |                                  | GSK Phase IIb trial conducted in Mozambique                                                    |             | GSK                 
|                     | MPL adjuvant component in GSKs tuberculosis vaccine              |                            | Tuberculosis                                                  |                                  | Corixa U.S. Phase I                                                                            |             | GSK                 
|                     | MPL adjuvant component in ATLs Pollinex Quattro vaccine          |                            | Certain allergies caused by grasses, trees, weeds and pollens |                                  | ATL E.U. Phase III  approved on named patient
    basis in Germany, Spain, Italy and the U.K. |             | Allergy Therapeutics
|                     | MPL adjuvant component in Biomiras BLP25 Liposome Vaccine        |                            | Non-small cell lung cancer                                    |                                  | Biomira expects to initiate a limited human experience trial in
    2005                       |             | Biomira             
|                     | MPL adjuvant component in GSKs HER-2/neu vaccine                 |                            | Breast cancer                                                 |                                  | GSK U.S. Phase I                                                                               |             | GSK                 
|                     | MPL adjuvant component in GSKs prostate cancer vaccine           |                            | Prostate Cancer                                               |                                  | GSK E.U. Phase I                                                                               |             | GSK                 
|                     | RC-529 adjuvant component in Berna Biotechs SUPERVAX
    vaccine |                            | Hepatitis B                                                   |                                  | Approved in Argentina                                                                          |             | Berna Biotech       
|                     | TLR4 Agonists and Antagonists                                     |                            |                                                               |                                  |                                                                                                |             |                     
|CRX-675 TLR4 agonist |                                                                   | Seasonal allergic rhinitis |                                                               | Corixa U.S. Phase I              |                                                                                                | Unpartnered
|CRX-527 TLR4 agonist |                                                                   | Infection prevention       |                                                               | U.S. IND filing expected in 2005 |                                                                                                | U.S. Army  





| |   |                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Phase I means products that are in, or have
    completed, Phase I clinical trials, performed to evaluate
    safety;                                         
|
| |  | Phase II means products that are in, or have
    completed, Phase II dose-ranging clinical testing, being
    tested to further determine safety and efficacy;
|
| |  | Phase III means products that are in, or have
    completed, Phase III clinical testing, being tested to
    determine efficacy; and                          
|
| |  | IND means an investigative new drug application.                                                                                                              



Adjuvants




4



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MPL Adjuvant.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Hepatitis B  GSK Fendrix®. On
    February 8, 2005, we announced that our partner, GSK,
    received regulatory approval of Fendrix from the European Agency
    for the Evaluation of Medicinal Products. Fendrix is a novel
    vaccine designed to prevent infection from Hepatitis B in
    high-risk groups such as pre-haemodialysis and haemodialysis
    patients and it includes the GSK Hepatitis B antigen with the
    addition of our MPL adjuvant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | HPV  GSK
    Cervarixtm.
    Cervical cancer is the second most common cause of cancer death
    in women worldwide, with approximately 500,000 new cases
    occurring annually. According to the World Health Organization
    scientists believe that infections with oncogenic genotypes of
    HPV are responsible for most, if not all cervical cancers. A
    study published in the British medical journal, The Lancet,reported Cervarix was the first vaccine to be 100% effective
    in protecting women against two strains of HPV (HPV 16 and
    18) that are linked to more than 70% of all cases of
    cervical cancer. GSK has reported that Cervarix has the
    potential to prevent more than 70% of cervical cancers. Two
    Phase III trials are underway and GSK expects to file for
    approval in Europe and countries outside of the United States by
    2006.                                                                                                                                                                         
|
| |  | HSV  GSK
    Simplirixtm.
    Genital herpes is an infection caused by the herpes simplex
    virus. There are two types of HSV, HSV-1 and HSV-2, and both can
    cause genital herpes. According to the Centers for Disease
    Control and Prevention, or CDCP, 45 million people in the
    United States ages 12 and older, or 1 out of 5 of the total
    adolescent and adult population, are infected with HSV-2.
    Nationwide, according to the CDCP, since the late 1970s, the
    number of people with genital herpes infection has increased
    30%. 
     Thirteen clinical trials with more than 12,000 volunteers have
    been completed evaluating Simplirix vaccine containing our MPL
    adjuvant. Results from two double-blind, randomized trials
    demonstrated that Simplirix vaccine was highly effective in
    protecting women against HSV-1 and HSV-2 genital herpes. GSK is
    currently conducting another Phase III pivotal trial in
    young adult women in collaboration with the National Institutes
    of Health, or NIH.
|
| |  | Malaria  GSK
    Mosquirixtm.
    In a proof-of-concept study published in the October 16,
    2004 issue of The Lancet, researchers reported GSKs
    RTS,S/ AS02A malaria vaccine candidate containing our MPL
    adjuvant protected a significant percentage of children against
    uncomplicated malaria, infection, and even severe forms of the
    disease for at least six months. This largest malaria vaccine
    efficacy trial ever conducted in Africa also re-confirmed the
    vaccines safety in children 1 to 4 years old. Further
    efficacy studies will be needed before consideration for
    licensure. The double-blind, controlled trial involved 2,022
    children in southern Mozambique and was conducted by the Centro
    de Investigação em Saude da Manhiça.                                                                                                                                                                                                                                                                    
|
| |  | Tuberculosis Vaccine. On January 14, 2004, we and
    GSK announced that the United States Food and Drug
    Administration, or FDA, is allowing the initiation of a
    Phase I clinical study to evaluate the safety and
    immunogenicity of a novel, proprietary prophylactic vaccine
    designed to induce protection against tuberculosis. The trial
    was conducted in the United States under an IND held by                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

5



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | us and was the first study of a recombinant tuberculosis vaccine
    to be conducted on human volunteers. Grants awarded in the late
    1990s from the National Institute of Allergy and Infectious
    Diseases, or NIAID, part of the NIH, supported research that
    uncovered the most effective protein-adjuvant combination for
    this vaccine. The vaccine combines a proprietary, recombinant
    tuberculosis protein antigen and a GSK proprietary adjuvant
    formulation that incorporates several adjuvants including our
    MPL adjuvant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| |  | Allergy  ATL Pollinex Quattro. Allergy
    Therapeutics Ltd., or ATL, incorporates MPL adjuvant as a
    component in ATLs Pollinex Quattro, an allergy vaccine
    that is in Phase III clinical trials in Europe. ATL
    specifically targets allergies caused by grasses, trees, weeds
    and pollens. ATLs allergy vaccine has been approved for
    sale on a Named Patient Basis in Germany, Spain, Italy and the
    U.K.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | Non-small cell lung cancer  Biomira BLP Liposome
    Vaccine. Biomira plans to incorporate MPL adjuvant as a
    component in Biomiras BLP25 Liposome Vaccine for the
    treatment of non-small cell lung cancer, or NSCLC. Lung cancer
    is the leading cause of cancer-related deaths for both men and
    women. The American Lung Association estimates that 173,770 new
    cases of lung cancer and 160,440 deaths from lung cancer
    occurred in 2004 in the United States. NSCLC is the most common
    type of lung cancer, comprising approximately 85% of all cases.
    NSCLC accounts for approximately 75% to 80% of all primary lung
    cancers. In April 2004, Biomira announced results from its
    Phase II clinical trial for the BLP25 Liposome Vaccine and
    in December 2004, Biomira announced a survival update from that
    clinical trial that showed that vaccinated patients had not yet
    reached median survival 23 months post-accrual compared to
    patients in the control group who had a median survival of
    13.3 months.
|
| |  | Other Vaccines Containing MPL: Our MPL adjuvant is also a
    component of the GSK breast cancer vaccine that is based on
    HER-2/neu, a well-established target in the development of tumor
    malignancy. This program was initially developed under our
    multi-field vaccine discovery agreement with our development
    partner, GSK, and following transfer to GSK, is now in
    Phase I development. In addition, GSK is also developing a
    prostate cancer vaccine containing MPL that was initially
    developed under our multi-field vaccine discovery agreement and
    is currently in Phase I stage of development.                                                                                                                                                                                                                                                                                                                                                                                                                                   

RC-529 Adjuvant.




TLR4 Agonists and Antagonists


The Innate Immune Response.




6



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| |               
| | --------------
| | TLR4 Agonists.



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | CRX-675. Seasonal Allergic Rhinitis is characterized by
    an overproduction of the cytokines in the nasal mucosa and
    associated with atopic or allergic sensitization. Administration
    of certain of our TLR4 agonist CRX-675 has been shown in animal
    models to significantly decrease allergic rhinitis. We initiated
    a Phase I human clinical trial in 2004 and expect the final
    report from the study in late 2005.                                                                                                                                                                                                                                       
|
| |  | CRX-527. CRX-527 is an additional TLR4 agonist currently
    in development, which is capable of stimulating nonspecific
    resistance to viral and bacterial pathogens at the mucosal and
    systemic level in preclinical models. CRX-527 is biologically
    active when administered to mucosal surfaces, where it
    stimulates nonspecific protection and has the potential to
    activate a mucosal immune response. We intend to file an IND
    with the United States FDA in 2005 and expect to begin
    Phase I human clinical testing in early 2006.                                                                                                              
|
| |  | Other. We are currently evaluating other TLR4 agonist
    candidates for use in the treatment of seasonal or perennial
    rhinitis, allergy, asthma, upper airway resistance to biological
    warfare agents and chronic obstructive pulmonary disease. Our
    preclinical studies indicate that our TLR4 agonist candidates
    are absorbed into the body and are biologically active at
    mucosal, or mucous membrane, surfaces. The tolerability and
    effectiveness demonstrated by preclinical mucosal delivery
    models indicate that aqueous formulations of the agonist may be
    useful in treating or preventing atopic diseases of the
    respiratory tract.

TLR4 Antagonists.


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Corporate Partnerships




Adjuvants


GSK: Manufacture and Supply Agreement.










| |   |                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | increased base pricing and annual price increases for MPL
    adjuvant;                                                                                     
|
| |  | payment of royalties to Corixa by GSK on all GSK vaccines
    containing MPL adjuvant until 10 years after market
    introduction of GSKs HPV vaccine; and
|
| |  | a provision for Corixa to repay a prior $5 million loan
    from GSK with 1,099,000 shares of Corixa common stock
    instead of cash at our option.        



GSK: Product License Agreements.




8



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Allergy Therapeutics Ltd.


Biomira Inc.


Berna Biotech.


Wyeth.


9



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Aventis.


TLR4 Agonists and Antagonists


U.S. Army.


NIAID/NIH.


Oncology Business Divestiture






10



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Other Relationships


IDRI.


11



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Introgen.


Patents and Proprietary Technology








| |   |                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the pending patent applications that we have filed or to which
    we have exclusive rights may not result in issued patents or may
    take longer than we expect to result in issued patents;                                                                            
|
| |  | the claims of any patents that are issued may not provide
    meaningful protection;                                                                                                                                                                                       
|
| |  | we may be unable to develop additional proprietary technologies
    that are patentable;                                                                                                                                                                                   
|
| |  | the patents licensed or issued to us may not provide a
    competitive advantage;                                                                                                                                                                                          
|
| |  | other companies may challenge patents licensed or issued to us;                                                                                                                                                                                                            
|
| |  | disputes may arise regarding the invention and corresponding
    ownership rights in inventions and know-how resulting from the
    joint creation or use of intellectual property by us, our
    licensors, corporate partners and other scientific
    collaborators; and
|
| |  | other companies may design around our patented technologies.                                                                                                                                                                                                               







12



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Government Regulation










| |   |                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | preclinical laboratory and animal studies;                                                                                                              
|
| |  | submission to the FDA of an IND, which must become effective
    before clinical trials may commence;                                                   
|
| |  | completion of adequate and well-controlled human clinical trials
    to establish the safety and efficacy of the proposed drug for
    its intended use;

13



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| |   |                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------
| |  | submission to the FDA of a Biologics License Application , or
    BLA, or New Drug Application, or NDA; and
|
| |  | FDA review and approval of the BLA or NDA before the product is
    commercially sold or shipped.          









| |   |                                                              
| | - | -------------------------------------------------------------
| |  | determine the efficacy for specific, targeted indications;   
|
| |  | determine dosage tolerance and optimum dosage; and           
|
| |  | further identify possible adverse reactions and safety risks.







| |   |                                                                                                   
| | - | --------------------------------------------------------------------------------------------------
| |  | deny the BLA or NDA if applicable regulatory criteria are not
    satisfied;                      
|
| |  | require additional testing or information; or                                                     
|
| |  | require post-market testing and surveillance to monitor the
    safety or efficacy of the product.





| |   |                                                                 
| | - | ----------------------------------------------------------------
| |  | would adversely affect the marketing of any products we develop;

14



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| |   |                                                                                              
| | - | ---------------------------------------------------------------------------------------------
| |  | could impose significant additional costs on us;                                             
|
| |  | would diminish any competitive advantages that we may
    attain; and                        
|
| |  | could adversely affect our ability to receive royalties and
    generate revenue and profits.







| |   |                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------
| |  | Class I  (general controls)  e.g.,
    labeling, pre-market notification and adherence to GMP and
    quality system regulation, or QSR;
|
| |  | Class II  (general controls and special
    controls)  e.g., performance standards and
    post-market surveillance; and                
|
| |  | Class III  (pre-market approval).                                                                                                        









15



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Competition






| |   |                              
| | - | -----------------------------
| |  | pharmaceutical companies;    
|
| |  | biotechnology companies;     
|
| |  | academic institutions; and   
|
| |  | other research organizations.





16



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| |   |                                          
| | - | -----------------------------------------
| |  | product efficacy and safety;             
|
| |  | timing and scope of regulatory approvals;
|
| |  | availability of resources;               
|
| |  | reimbursement coverage;                  
|
| |  | product price; and                       
|
| |  | patent position.                         





| |   |                                                                                         
| | - | ----------------------------------------------------------------------------------------
| |  | advance our technology platforms;                                                       
|
| |  | license additional technology;                                                          
|
| |  | maintain a proprietary position in our technologies and products;                       
|
| |  | obtain required government and other public and private
    approvals on a timely basis;
|
| |  | availability of reimbursement from third-party payors;                                  
|
| |  | attract and retain key personnel; and                                                   
|
| |  | enter into corporate partnerships.                                                      

Manufacturing






Marketing and Distribution




17



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Employees









|        |           
|------- | ----------
|Item 2. | Properties










|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders






PART II







|        |                                                                                                                     
|------- | --------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities

Price range of common stock




18



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|               |  |      |      |  |     |  |      | 
|-------------- |  | ---- | ---- |  | --- |  | ---- | 
|               |  | High |      |  | Low | 
|               |  |      |      |  |     | 
|2003           |  |      |      |  |     |  |      | 
|First Quarter  |  |      | 6.92 |  |     |  | 5.16 | 
|Second Quarter |  |      | 8.92 |  |     |  | 6.40 | 
|Third Quarter  |  |      | 9.89 |  |     |  | 6.69 | 
|Fourth Quarter |  |      | 9.00 |  |     |  | 5.22 | 
|2004           |  |      |      |  |     |  |      | 
|First Quarter  |  |      | 6.95 |  |     |  | 5.76 | 
|Second Quarter |  |      | 7.23 |  |     |  | 4.15 | 
|Third Quarter  |  |      | 5.32 |  |     |  | 3.26 | 
|Fourth Quarter |  |      | 4.76 |  |     |  | 3.26 | 



Dividend Policy




Securities Authorized for Issuance Under Equity Compensation
Plans


Equity Compensation Plan Information


|                                                           |       |                      |            |            |                      |                      |              |                      |  |  |           |           | 
|---------------------------------------------------------- | ----- | -------------------- | ---------- | ---------- | -------------------- | -------------------- | ------------ | -------------------- |  |  | --------- | --------- | 
|                                                           |       |                      |            |            |                      | Number of Securities |             
|                                                           |       |                      |            |            |                      | Remaining Available  |             
|                                                           |       |                      |            |            |                      | for Future Issuance  |             
|                                                           |       | Number of Securities |            |            |                      |                      | Under Equity |                     
|                                                           |       | to be Issued Upon    |            |            | Weighted-Average     |                      |              | Compensation Plans   | 
|                                                           |       | Exercise of          |            |            | Exercise Price of    |                      |              | (Excluding           | 
|                                                           |       | Outstanding Options, |            |            | Outstanding Options, |                      |              | Securities Reflected | 
|                                                           |       | Warrants and Rights  |            |            | Warrants and Rights  |                      |              | in Column(a))        | 
|                                                           |       |                      |            |            |                      |                      |              |                      | 
|Plan category                                              |       | (a)                  |            |            | (b)                  |                      |              | (c)                  | 
|                                                           |       |                      |            |            |                      |                      |              |                      | 
|Equity compensation plans approved by security holders     |       |                      | 12,791,845 |            |                      | $                    | 8.80         |                      |  |  | 2,010,869 |          
|Equity compensation plans not approved by security holders |       |                      |           |            |                      |                      |             |                      |  |  |          |          
|                                                           |       |                      |            |            |                      |                      |              |                      | 
|                                                           | Total |                      |            | 12,791,845 |                      |                      | $            | 8.80                 |  |  |           | 2,010,869 | 
|                                                           |       |                      |            |            |                      |                      |              |                      | 






|        |                                     
|------- | ------------------------------------
|Item 6. | Selected Consolidated Financial Data



19



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|                                                                                                                                       |                                                               |                                          |         |        |        |   |         |        |         |   |          |         |         |      |          |         |         |   |          |         |         | 
|-------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------- | ---------------------------------------- | ------- | ------ | ------ | - | ------- | ------ | ------- | - | -------- | ------- | ------- | ---- | -------- | ------- | ------- | - | -------- | ------- | ------- | 
|                                                                                                                                       |                                                               | Year Ended December 31,                  |        
|                                                                                                                                       |                                                               |                                          |        
|                                                                                                                                       |                                                               | 2004                                     |         |        | 2003   |   |         | 2002   |         |   | 2001     |         |         | 2000 |         
|                                                                                                                                       |                                                               |                                          |         |        |        |   |         |        |         |   |          |         |         |      |         
|                                                                                                                                       |                                                               | (In thousands, except per share amounts) |        
|Consolidated Statement of Operations Data:                                                                                             |                                                               |                                          |         |        |        |   |         |        |         |   |          |         |         |      |          |         |         |   |          |        
|Revenue:                                                                                                                               |                                                               |                                          |         |        |        |   |         |        |         |   |          |         |         |      |          |         |         |   |          |        
|                                                                                                                                       | Collaborative agreements                                      |                                          | $       | 16,927 |        |   | $       | 29,911 |         |   | $        | 43,587  |         |      | $        | 54,147  |         |   | $        | 33,917  |        
|                                                                                                                                       | Product sales                                                 |                                          |         | 4,547  |        |   |         | 3,031  |         |   |          | 2,547   |         |      |          | 981     |         |   |          | 726     |        
|                                                                                                                                       | Government grants                                             |                                          |         | 3,482  |        |   |         | 2,403  |         |   |          | 2,604   |         |      |          | 2,937   |         |   |          | 2,331   |        
|                                                                                                                                       |                                                               |                                          |         |        |        |   |         |        |         |   |          |         |         |      |         
|                                                                                                                                       |                                                               | Total revenue                            |         |        | 24,956 |   |         |        | 35,345  |   |          |         | 48,738  |      |          |         | 58,065  |   |          |         | 36,974  | 
|Operating expenses:                                                                                                                    |                                                               |                                          |         |        |        |   |         |        |         |   |          |         |         |      |          |         |         |   |          |        
|                                                                                                                                       | Research and development                                      |                                          |         | 62,322 |        |   |         | 84,054 |         |   |          | 94,039  |         |      |          | 134,993 |         |   |          | 60,186  |        
|                                                                                                                                       | Sales, general and administrative and intangible amortization |                                          |         | 10,254 |        |   |         | 11,762 |         |   |          | 19,043  |         |      |          | 80,553  |         |   |          | 12,499  |        
|                                                                                                                                       | Manufacturing                                                 |                                          |         | 3,246  |        |   |         | 1,380  |         |   |          | 2,043   |         |      |          | 726     |         |   |          | 419     |        
|                                                                                                                                       | Restructuring                                                 |                                          |         | 1,906  |        |   |         | 2,452  |         |   |          | 3,436   |         |      |          | 2,335   |         |   |          |        |        
|                                                                                                                                       | Impairment of lease-related assets(1)                         |                                          |         | 2,572  |        |   |         | 18,491 |         |   |          |        |         |      |          |        |         |   |          |        |        
|                                                                                                                                       | Acquired in-process research and development(2)               |                                          |         |       |        |   |         |       |         |   |          |        |         |      |          |        |         |   |          | 629,700 |        
|                                                                                                                                       | Goodwill impairment(3)                                        |                                          |         |       |        |   |         |       |         |   |          | 161,060 |         |      |          |        |         |   |          |        |        
|                                                                                                                                       |                                                               |                                          |         |        |        |   |         |        |         |   |          |         |         |      |         
|                                                                                                                                       |                                                               | Total operating expenses                 |         |        | 80,300 |   |         |        | 118,139 |   |          |         | 279,621 |      |          |         | 218,607 |   |          |         | 702,804 | 
|                                                                                                                                       |                                                               |                                          |         |        |        |   |         |        |         |   |          |         |         |      |         
|Loss from operations                                                                                                                   |                                                               |                                          | (55,344 | )      |        |   | (82,794 | )      |         |   | (230,883 | )       |         |      | (160,542 | )       |         |   | (665,830 | )      
|Interest and other income, net                                                                                                         |                                                               |                                          | 5,926   |        |        |   | 1,554   |        |         |   | 23,484   |         |         |      | 12,505   |         |         |   | 4,999    |        
|                                                                                                                                       |                                                               |                                          |         |        |        |   |         |        |         |   |          |         |         |      |         
|Loss before discontinued operations and cumulative effect of
    change in accounting principle                                        |                                                               |                                          | (49,418 | )      |        |   | (81,240 | )      |         |   | (207,399 | )       |         |      | (148,037 | )       |         |   | (660,831 | )      
|Discontinued operations(4)                                                                                                             |                                                               |                                          | (26,989 | )      |        |   | (2,679  | )      |         |   |         |         |         |      |         |         |         |   |         |        
|Cumulative effect of change in accounting principle(5)                                                                                 |                                                               |                                          |        |        |        |   |        |        |         |   |         |         |         |      |         |         |         |   | (6,338   | )      
|                                                                                                                                       |                                                               |                                          |         |        |        |   |         |        |         |   |          |         |         |      |         
|Net loss                                                                                                                               |                                                               |                                          | (76,407 | )      |        |   | (83,919 | )      |         |   | (207,399 | )       |         |      | (148,037 | )       |         |   | (667,169 | )      
|Preferred stock dividend                                                                                                               |                                                               |                                          | (595    | )      |        |   | (948    | )      |         |   | (767     | )       |         |      | (1,730   | )       |         |   | (9,887   | )      
|                                                                                                                                       |                                                               |                                          |         |        |        |   |         |        |         |   |          |         |         |      |         
|Net loss applicable to common stockholders                                                                                             |                                                               | $                                        | (77,002 | )      |        | $ | (84,867 | )      |         | $ | (208,166 | )       |         | $    | (149,767 | )       |         | $ | (677,056 | )      
|                                                                                                                                       |                                                               |                                          |         |        |        |   |         |        |         |   |          |         |         |      |         
|Basic and diluted loss per common share before discontinued
    operations and cumulative effect of change in accounting
    principle |                                                               | $                                        | (0.87   | )      |        | $ | (1.53   | )      |         | $ | (4.65    | )       |         | $    | (3.61    | )       |         | $ | (31.53   | )      
|Discontinued operations per share                                                                                                      |                                                               | $                                        | (0.48   | )      |        | $ | (0.05   | )      |         | $ |         |         |         | $    |         |         |         | $ |         |        
|Cumulative effect of change in accounting principle per share                                                                          |                                                               | $                                        |        |        |        | $ |        |        |         | $ |         |         |         | $    |         |         |         | $ | (0.30    | )      
|Basic and diluted net loss applicable to common stockholders(6)                                                                        |                                                               | $                                        | (1.36   | )      |        | $ | (1.60   | )      |         | $ | (4.67    | )       |         | $    | (3.66    | )       |         | $ | (32.30   | )      
|Shares used in computation of basic and diluted net loss per
    common share                                                          |                                                               |                                          | 56,569  |        |        |   | 52,981  |        |         |   | 44,611   |         |         |      | 40,961   |         |         |   | 20,961   |        
|                                                                                                                                       |                                                               |                                          |         |        |        |   |         |        |         |   |          |         |         |      |         

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | See Note 1 of Notes to Consolidated Financial Statements
    for an explanation of the 2004 and 2003 impairment of lease
    related assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   
|(2) | The $629.7 million reflects the amount of allocated
    in-process research and development, or IPR&D, that we
    acquired in the 2000 Coulter acquisition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   
|(3) | See Note 1 of Notes to Consolidated Financial Statements
    for an explanation of the 2002 goodwill impairment charge.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(4) | See Note 11 of Notes to Consolidated Financial Statements
    for an explanation of the 2004 discontinued operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(5) | Effective January 1, 2000, we changed our method of
    accounting for nonrefundable up-front license fees to recognize
    such fees over the period of our continuing involvement,
    generally the term of the related research and development
    collaboration arrangement on a straight-line basis, as this
    method best matches the effort provided. We had previously
    recognized nonrefundable up-front license fees as revenue when
    the technology was transferred and when all significant
    contractual obligations relating to the fees had been fulfilled.
    We believe the change in accounting principle is preferable
    based on guidance provided in SEC Staff Accounting
    Bulletin No. 101, Revenue Recognition in Financial
    Statements.
|   
|(6) | See Note 1 of Notes to Consolidated Financial Statements
    for an explanation of the computation of the number of shares
    and the method used to calculate basic and diluted net loss per
    common share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

|                                                         |  |                |            |   |      |   |            |      |  |   |            |   |  |      |          |   |  |   |          |  
|-------------------------------------------------------- |  | -------------- | ---------- | - | ---- | - | ---------- | ---- |  | - | ---------- | - |  | ---- | -------- | - |  | - | -------- | -
|                                                         |  | December 31,   |           
|                                                         |  |                |           
|                                                         |  | 2004           |            |   | 2003 |   |            | 2002 |  |   | 2001       |   |  | 2000 |         
|                                                         |  |                |            |   |      |   |            |      |  |   |            |   |  |      |         
|                                                         |  | (In thousands) |           
|Consolidated Balance Sheet Data:                         |  |                |            |   |      |   |            |      |  |   |            |   |  |      |          |   |  |   |          |  
|Cash, cash equivalents and securities available-for-sale |  | $              | 116,187    |   |      | $ | 191,985    |      |  | $ | 116,757    |   |  | $    | 118,723  |   |  | $ | 194,738  |  
|Working capital                                          |  |                | 72,878     |   |      |   | 106,783    |      |  |   | 55,792     |   |  |      | 41,824   |   |  |   | 144,504  |  
|Total assets                                             |  |                | 191,201    |   |      |   | 250,566    |      |  |   | 196,106    |   |  |      | 367,382  |   |  |   | 504,334  |  
|Long-term obligations, less current portion              |  |                | 119,110    |   |      |   | 108,138    |      |  |   | 6,920      |   |  |      | 27,657   |   |  |   | 33,422   |  
|Redeemable common stock                                  |  |                |           |   |      |   |           |      |  |   |           |   |  |      | 2,000    |   |  |   | 2,000    |  
|Accumulated deficit                                      |  |                | (1,270,967 | ) |      |   | (1,194,560 | )    |  |   | (1,110,641 | ) |  |      | (903,242 | ) |  |   | (755,205 | )
|Total stockholders equity                               |  |                | 20,292     |   |      |   | 80,956     |      |  |   | 128,392    |   |  |      | 281,765  |   |  |   | 404,575  |  






|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations



Summary of Critical Accounting Policies




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| |        
| | -------
| | Revenue





| |                  
| | -----------------
| | Asset Impairments







Overview






| |   |                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Vaccine Adjuvants  compounds or additives that, when
    combined with a vaccine, boost the bodys immune response
    to antigens contained in the vaccine; and

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | TLR4 agonists and antagonists  compounds that
    interact with a type of cell surface receptor that recognizes
    distinct molecular signatures presented by invading pathogens
    and generates an immune response. These responses may be useful
    in the prevention and/or therapy of many conditions, including
    seasonal allergic rhinitis, broad infection prevention, chronic
    obstructive pulmonary disease and inflammatory conditions.













| |   |                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------
| |  | it focuses on our fundamental strength in immunotherapeutic
    product discovery and selected product development; 
|
| |  | it capitalizes on our corporate partners strengths in
    product development, manufacturing and commercialization;
|
| |  | it may enable us to retain significant downstream participation
    in product sales; and                           
|
| |  | it reduces our financing requirements.                                                                              





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | GSK. Effective September 1998, we entered into a
    comprehensive corporate partnership with GSK. Under the
    agreement we granted GSK an exclusive worldwide license to
    develop, manufacture and sell vaccine products and certain
    dendritic cell therapy products that incorporate antigens
    discovered or in-licensed under this corporate partnership. We
    also granted GSK license rights to develop, manufacture and sell
    passive immunotherapy products, such as T cell or antibody
    therapeutics, and therapeutic drug monitoring products, in each
    case that incorporate these antigens. On August 31, 2002
    the funded research and development period of our collaboration
    and license agreement with GSK terminated in all of the cancer
    fields covered by the agreement. GSK extended the funded
    research and development period for an additional 2 years
    through August 2004 for the research and development programs
    for tuberculosis and chlamydia vaccines. Under

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| |  |                                                                                                                                                                                
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the terms of the extension, GSK was required to fund one-half of
    the actual cost of the tuberculosis program and the cost of the
    chlamydia program for a 2-year period.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | In January 2003, we and GSK entered into new agreements to
    further advance the development of multiple solid tumor
    vaccines. Following expiration of the funded research period for
    the cancer fields under the original agreement, one of the new
    agreements extends our and GSKs collaborative efforts into
    vaccine development and potential proof-of-principle clinical
    trials. Under the terms of this new agreement, GSK granted us a
    worldwide, exclusive license to develop a vaccine candidate for
    prostate cancer and a vaccine candidate for breast cancer. As a
    part of this agreement, GSK retains the option to buy-back
    exclusive worldwide rights for either or both vaccine candidates
    following the completion of proof-of-principle clinical trials.
    If GSK exercises its buy-back rights, we have the option of
    participating in further development, up to and including a
    sharing of promotion rights in the United States. The buy-back
    price will be based on our research costs incurred under this
    new agreement, plus a premium of 25% and up to an additional
    $3.0 million depending on the stage of development at the
    time GSK exercises its buy-back option. In the event GSK does
    not exercise its buy-back option, we will be free to develop the
    vaccines alone or with other partners and have agreed to pay GSK
    success- based milestones and royalties in the event of product
    sales. Under these new agreements, we are responsible for
    providing resources and development funding of up to
    $32 million to complete proof-of-principle clinical studies
    over a period of time in excess of 5 years. At
    December 31, 2004, we had provided approximately
    $10.6 million resource and development funding. This
    funding will be used to pay for GMP grade material, production
    and clinical trials for prostate and breast cancer vaccine
    development efforts.
|
| | GSK has the right to terminate any of these agreements in the
    event of our material default of such agreement, or our
    bankruptcy or insolvency. If we materially breach our original
    agreement with GSK, GSK may as an alternative to terminating the
    agreement, continue its licenses with a reduction in the amounts
    owed to us as potential milestones and royalties. Under our
    original agreement, GSK also has the right for any reason with
    6 months prior notice to terminate its licenses in the
    breast, prostate and colon fields and for the HER-2/neu and
    mammaglobin antigens, although this termination right does not
    apply to the breast cancer vaccine candidate and prostate cancer
    vaccine candidate that GSK has licensed to us under one of the
    new agreements. Also under the original agreement, GSK has the
    right for any reason with 6 months prior notice to
    terminate its licenses in the tuberculosis and chlamydia fields
    after August 2004. In addition, under our original agreement, if
    an acquisition of us results in a material breach of that
    agreement, GSK would have the right to terminate that agreement
    and we and any of our employees that remain employees of us or
    our acquiror would be precluded from working in any of the
    disease fields covered by our original agreement with GSK for
    2 years after such termination.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| | If we materially breach our new agreement for the development of
    a breast cancer vaccine candidate and prostate cancer vaccine
    candidate because of our failure to perform the development
    program, the rights to those vaccine candidates will revert to
    GSK and we will also be deemed to be in material breach of our
    new agreement under which we acquired from GSK the ovarian
    cancer rights and diagnostic and T cell product rights related
    to our cancer antigens that were included in our original
    agreement. If GSK terminates our new agreement that covers
    ovarian cancer, diagnostics and T cell products because of our
    material breach, then all of the rights under that agreement
    will revert to GSK with the exception of any rights we may have
    granted to any third parties before the termination, and we will
    be required to pay GSK twice the amount of revenue we received
    from those third parties as would have been paid to GSK had the
    agreement not been terminated for our material breach.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| | Prior to December 31, 2004, we had a collaboration
    agreement with GSK for the development and commercialization of
    BEXXAR therapeutic regimen, which was approved in June, 2003 by
    the FDA for the treatment of patients with CD20 positive,
    follicular, NHL, with and without transformation, whose disease
    is refractory to Rituximab and has relapsed following
    chemotherapy. Under the terms of the agreement, both companies
    contributed to the commercialization efforts of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

24



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | BEXXAR therapeutic regimen in the United States and shared
    profits and losses from GSKs sales of BEXXAR therapeutic
    regimen equally. We recognized the costs we incurred associated
    with BEXXAR therapeutic regimen related activities such as the
    cost of co-promotion revenue and sales and promotion costs in
    our statement of operations. We and GSK then prepared a
    quarterly calculation of the joint profit or loss which
    considered all revenue and costs associated with BEXXAR
    therapeutic regimen commercial activities incurred by us and GSK
    and the equal sharing of the joint profit or loss. The result of
    this sharing calculation was either a reimbursement from GSK to
    Corixa or a payment from Corixa to GSK and was recorded in our
    statement of operations as co-promotion revenue. Prior to
    commercialization, we recorded our share of the net
    reimbursement or payment from the joint profit or loss
    calculation in sales, general and administrative expenses. For
    the year ended December 31, 2004, we recorded
    $2.2 million of co-promotion revenue which is recorded in
    discontinued operations.
|
| | Under the terms of the agreement, GSK agreed to reimburse us for
    certain clinical and manufacturing development costs and pay us
    for the achievement of certain defined clinical development,
    regulatory and sales milestones. In 2004, we recognized revenue
    of $4.3 million for the reimbursement of clinical and other
    development costs from GSK which is recorded in discontinued
    operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | On December 31, 2004, we transferred to GSK all worldwide
    rights and responsibilities related to the manufacturing,
    development and commercialization of the BEXXAR therapeutic
    regimen. According to the agreement we will continue to receive
    development and sales milestones and royalties based on sales of
    BEXXAR therapeutic regimen in the United States, Canada and
    Australasia. We and GSK will continue to equally share royalties
    on Zevalin sales according to the terms of the previous patent
    litigation settlement with Biogen Idec. We have recorded our
    BEXXAR therapeutic regimen activities as a discontinued
    operation in our statement of operations as discussed in
    Note 11 of Notes to Consolidated Financial Statements.                                                                                                                                                                                                                                                                                                                                                                                                          



| |   |                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | GSK: Manufacture and Supply Agreement. We entered into a
    manufacturing and supply agreement with GSK in July 2004
    covering the production of our MPL adjuvant, which is a
    component in GSKs future vaccines currently undergoing
    clinical trials, vaccines awaiting regulatory approval and
    Fendrix, which has received regulatory approval in the European
    Union.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The agreement, which runs through 2012, guarantees payment to us
    for supplying GSK with increasing annual quantities of MPL
    peaking in 2008 at the current maximum output of our Hamilton,
    Montana, MPL manufacturing facility (approximately 2
    kilograms/year). Under the terms of the agreement, we agreed to
    expand cGMP compliant MPL production capacity in association
    with anticipated approvals of GSK vaccines that contain MPL
    adjuvant.                                                                                                                     
|
| | We received a multi-million dollar up-front licensing fee and
    will grant GSK a co-exclusive license to manufacture MPL
    adjuvant at amounts over and above our maximum annual output.
    The manufacturing agreement can be renewed at GSKs option
    for multiple, three-year periods beyond 2012. Other elements of
    the agreement include: increased base pricing and annual price
    increases for MPL adjuvant; and payment of royalties to Corixa
    by GSK on all GSK vaccines containing MPL adjuvant until
    10 years after market introduction of GSKs HPV
    vaccine.
|
| | In connection with the MPL manufacturing and supply agreement,
    we amended the terms of an existing $5 million outstanding
    loan from GSK whereby they agreed that we may elect to repay
    this loan in either cash or 1,099,000 shares of our common
    stock.                                                                                                                                                                                                                                                                                                                           
|
| | Amounts receivable from GSK at December 31, 2004 and 2003
    were $8.2 and $4.1 million, respectively. For the
    years ended December 31, 2004, 2003 and 2002,
    approximately 23%, 19% and 42% of our revenue resulted from
    collaborative agreements with GSK.                                                                                                                                                                                                                                                                                                                          



| |   |                                                                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Genentech. In December 2004, we entered into a license
    agreement with Genentech, under which we granted Genentech an
    exclusive worldwide license to a novel target for the possible
    development of humanized antibody-based therapeutics. Under the
    terms of the agreement, we received a

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | $1.6 million one-time nonrefundable license fee, and may
    receive up to an additional $8.25 million of future
    success-based payments upon completion of certain regulatory and
    commercial milestones in addition to royalty payments on product
    sales. Genentech is responsible for development and
    commercialization costs of any potential therapeutic based on
    our antibody target.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | Amersham Health. In October 2001, we entered into an
    agreement whereby Amersham Health, a subsidiary of Amersham plc
    agreed to market BEXXAR therapeutic regimen in Europe. Under the
    terms of a stock purchase agreement with Amersham Health, we
    sold $15 million of shares of our common stock to Amersham
    Health. Upon execution of the agreement Amersham Health
    purchased 271,343 shares of our common stock for
    approximately $5 million at a price of $18.43 per
    share, which represented a forty percent premium of
    approximately $1.4 million to the then current market value
    of our common stock. The premium was accounted for as a
    nonrefundable up-front license payment and was deferred and
    recognized as revenue ratably over the development term of the
    agreement. Following our partial option exercises in October
    2001 and December 2002, on May 14, 2003, we completed the
    exercise of our option to sell up to $15 million of shares
    of our common stock to Amersham Health when we sold
    721,814 shares of our common stock to Amersham Health at a
    price per share of $6.927 for a total purchase price of
    approximately $5 million. On December 10, 2004, we and
    Amersham Health terminated the development, commercialization
    and license agreement. In connection with the termination,
    Amersham paid us a $3 million termination fee in accordance
    with the terms of the agreement which is recorded in
    discontinued operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Wyeth. We have license and supply agreements with Wyeth,
    granting Wyeth licenses to certain adjuvants for use in vaccines
    for certain infectious and autoimmune disease fields that Wyeth
    is developing. These agreements grant Wyeth exclusive,
    co-exclusive and nonexclusive license rights depending on the
    disease field. Under the terms of the agreements, Wyeth pays
    annual license fees, milestones, transfer payments and future
    royalty payments. We recognized revenue related to our
    agreements with Wyeth of $1.8 million, $2.5 million
    and $2.0 million in 2004, 2003 and 2002, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| |  | Zambon Group and JT. During May and June 1999, we entered
    into corporate partnerships with Zambon and JT, respectively,
    for the research, development and commercialization of vaccine
    products aimed at preventing and treating lung cancer. Zambon
    has exclusive rights to develop and sell vaccine products in
    Europe, the countries of the former Soviet Union, Argentina,
    Brazil and Columbia and co-exclusive rights in China. Under the
    June 1999 agreement we granted JT exclusive rights to develop
    and sell vaccine products outside of the territory licensed to
    Zambon, including the United States and Japan, and co-exclusive
    rights to develop and sell vaccine products in China. We also
    granted Zambon a nonexclusive license and JT an option to
    formulate vaccines that may result from the collaboration using
    our microsphere delivery system with our proprietary adjuvants.
    During 2002, the 3-year research terms of the agreements expired
    and the respective research funding obligations ceased. In
    November 2002, we and Zambon amended our agreement so that we
    jointly fund clinical testing of a non-small cell lung cancer
    vaccine. In December 2002, we recorded a milestone payment of
    $1.0 million from Zambon in connection with the filing of
    our IND for a lung cancer vaccine candidate in the United
    States. In January 2003, we amended and restated our agreement
    with JT so that we hold exclusive rights to all antigens
    discovered in our lung cancer vaccine program, in all countries
    previously licensed to JT, with the exception of rights
    associated with commercialization of a non-small cell, lung
    carcinoma vaccine candidate in Japan. Under the terms of our
    amended agreement with JT, JT will continue to hold an exclusive
    license to this vaccine candidate for development and
    commercialization in Japan, and we will hold all rights in North
    America and in those territories not previously licensed to
    Zambon. In connection with the restructuring of the JT
    agreement, we and JT have agreed to pay each other fees,
    milestones and royalties in the event that development
    milestones and product sales are achieved. We recognized revenue
    of $831,000, $993,000 and $6.9 million in connection with
    our agreements in 2004, 2003 and 2002, respectively.

26



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Kirin. In December 2002, we entered into a multiyear
    development and commercialization agreement with Kirin for
    potential cancer vaccine for the treatment of multiple forms of
    cancer, including leukemia, myelodysplasia and melanoma. Under
    the agreement we granted Kirin exclusive rights to develop and
    market vaccine products resulting from our WT-1 vaccine
    candidate in Asia/ Australasia. We and Kirin have agreed to
    share WT-1 vaccine commercialization rights and Kirin has agreed
    to fund one-half of the research and development costs in North
    America. We will retain marketing rights for the potential
    vaccine in Europe. Upon entering into the agreement, Kirin paid
    us $3 million in up-front license fees, which is being
    recognized as revenue over the estimated research and
    development term. Under the terms of the agreement, Kirin has
    agreed to co-fund development of WT-1 vaccine candidate and pay
    us success-based milestone payments and royalties on future
    product sales in Asia/ Australasia. In connection with this
    agreement, we recognized revenue of $2.8 million in 2004
    and $2.3 million in 2003.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Kirin has the right to terminate our agreement in the event of
    our material breach. Kirin may also choose not to terminate the
    agreement for our material breach, no matter when the breach
    occurs, but instead may keep its licenses intact rather than
    pursue any other rights and remedies, in which case all of
    Kirins payment obligations to us will be reduced. Kirin
    has the right to terminate our agreement at any time in North
    America, Asia or both territories, and in any of these cases
    Kirin must pay us a termination fee. Both we and Kirin have the
    right to terminate the agreement before commercial launch of the
    first product if together we determine there are no products
    worthy of further development or if any product causes
    irreversible or development limiting toxicity. However, if Kirin
    chooses to terminate the agreement due to toxicity, we have the
    right to continue product development ourselves and depending on
    further development Kirin may be obligated to pay us a
    termination fee. If we choose to terminate the agreement due to
    toxicity, Kirin will have the right to continue product
    development and pay us royalties in the event of product sales.
    Kirin also has the right to terminate our agreement in the event
    product development and commercialization is prevented due to
    certain third party intellectual property positions. Kirin also
    has the right to terminate our agreement if no product has
    successfully completed clinical trials by 10 years after
    the effective date, if no product has achieved regulatory
    approval in the United States or Japan by 12 years after
    the effective date, if our performance is delayed by at least
    18 months as a result of force majeure or if we terminate
    or breach a third party license under which Kirin is a
    sublicensee and if, as a result, Kirin is sued or Kirins
    rights under our agreement are materially diminished. In
    addition, Kirin also has the right to terminate the agreement in
    the event of our bankruptcy or insolvency.



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Medicis. In August 2000, we entered into a multiyear
    development, commercialization and license agreement covering
    our psoriasis immunotherapeutic product,
    PVACtm
    treatment, with Medicis Pharmaceutical Corporation, or Medicis.
    Under the agreement we provide Medicis exclusive rights to PVAC
    treatment in the United States and Canada. Medicis made a
    nonrefundable payment of $17 million upon effectiveness of
    the agreement. In December 2003 we announced that we had
    discontinued development of PVAC treatment due to phase II
    trial results that confirmed PVAC therapy failed to provide a
    statistically significant benefit versus placebo. We also
    terminated our license agreement with Medicis. In connection
    with the termination of the license agreement, Medicis has no
    additional funding obligations. As a result of discontinuing
    development of PVAC treatment, we recognized $5 million of
    revenue and $2.5 million of expense that was previously
    deferred and was related to the initial Medicis payment received
    in 2000.



27



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Results of Operations






| |                                             
| | --------------------------------------------
| | Years Ended December 31, 2004, 2003 and 2002

Revenue












28



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Expenses




| |                                  
| | ---------------------------------
| | Research and Development Expenses





(in
millions)


|                                  |  |      |      |  |      |   |      |      |  |   |      | 
|--------------------------------- |  | ---- | ---- |  | ---- | - | ---- | ---- |  | - | ---- | 
|                                  |  | 2004 |      |  | 2003 |   |      | 2002 | 
|                                  |  |      |      |  |      |   |      |      | 
|Research and preclinical programs |  | $    | 42.1 |  |      | $ | 35.8 |      |  | $ | 42.3 | 
|Clinical development programs     |  |      | 20.2 |  |      |   | 48.3 |      |  |   | 51.7 | 
|                                  |  |      |      |  |      |   |      |      | 
|Total research and development    |  | $    | 62.3 |  |      | $ | 84.1 |      |  | $ | 94.0 | 
|                                  |  |      |      |  |      |   |      |      | 





29



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| |                                           
| | ------------------------------------------
| | Sales, General and Administrative Expenses









| |              
| | -------------
| | Manufacturing





| |              
| | -------------
| | Restructuring







| |                                                
| | -----------------------------------------------
| | Impairment of Lease Related Assets and Goodwill



30



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Interest Income




Interest Expense




Other Income, Net




Loss from Discontinued operations




31



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Liquidity and Capital Resources






(in thousands)


|                                  |  |                        |         |  |        |   |        |           |  |   |           |  |  |            |         |  |  |   |        | 
|--------------------------------- |  | ---------------------- | ------- |  | ------ | - | ------ | --------- |  | - | --------- |  |  | ---------- | ------- |  |  | - | ------ | 
|                                  |  | Payments Due by Period |        
|                                  |  |                        |        
|Contractual Commitment            |  | Total                  |         |  | 1 Year |   |        | 2-3 Years |  |   | 4-5 Years |  |  | Thereafter |        
|                                  |  |                        |         |  |        |   |        |           |  |   |           |  |  |            |        
|Long-term obligations             |  | $                      | 127,799 |  |        | $ | 8,694  |           |  | $ | 3,089     |  |  | $          | 101,466 |  |  | $ | 14,550 | 
|Operating leases                  |  |                        | 108,685 |  |        |   | 10,690 |           |  |   | 18,439    |  |  |            | 19,421  |  |  |   | 60,135 | 
|Interest on long term obligations |  |                        | 18,064  |  |        |   | 5,840  |           |  |   | 9,387     |  |  |            | 2,468   |  |  |   | 369    | 
|                                  |  |                        |         |  |        |   |        |           |  |   |           |  |  |            |        
|Total contractual commitments     |  | $                      | 254,548 |  |        | $ | 25,224 |           |  | $ | 30,915    |  |  | $          | 123,355 |  |  | $ | 75,054 | 
|                                  |  |                        |         |  |        |   |        |           |  |   |           |  |  |            |        









32



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| |   |                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------
| |  | public or private equity financings, which could result in
    significant dilution to our stockholders;
|
| |  | public or private debt financings; and                                                                  
|
| |  | additional capital lease transactions.                                                                  







| |   |                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------
| |  | continued scientific progress in our discovery, research and
    product development programs;                    
|
| |  | progress with preclinical studies and clinical trials;                                                            
|
| |  | the magnitude and scope of our discovery, research and
    development programs;                                  
|
| |  | our ability to maintain existing, and establish additional,
    corporate partnerships and licensing arrangements;
|
| |  | the time and costs involved in obtaining regulatory approvals;                                                    
|
| |  | the time and costs involved in expanding and maintaining our
    manufacturing facilities;                        
|
| |  | the costs involved in preparing, filing, prosecuting,
    maintaining, defending and enforcing patent claims;     
|
| |  | the potential need to develop, acquire or license new
    technologies and products; and                          
|
| |  | other factors not within our control.                                                                             

New Accounting Pronouncements


Share-Based Payment  An Amendment of FASB
Statements No. 123 and 95


33



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The Meaning of Other-than-Temporary
Impairment and its Application to Certain Investments.







|         |                                                              
|-------- | -------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosure About Market
    Risk

Interest Rate Risk








34



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|                  |                               |                |   |               |                     |  |                 |                 |  |               |         |         |  |  |       |       |   
|----------------- | ----------------------------- | -------------- | - | ------------- | ------------------- |  | --------------- | --------------- |  | ------------- | ------- | ------- |  |  | ----- | ----- | --
|                  |                               |                |   | Estimated     |                     |  | Fair Value      |                 |  | Hypothetical  |        
|                  |                               |                |   | Hypothetical  |                     |  | After           |                 |  | Percentage    |        
|                  |                               |                |   | Change in     |                     |  | Hypothetical    |                 |  | Change in     |        
|                  |                               |                |   | Interest Rate |                     |  | Change in       |                 |  | Stockholders |        
|                  |                               | Fair Value at  |   |               | (bp = basis points) |  |                 | Interest Rate   |  |               | Equity  |        
|                  |                               |                |   |               |                     |  |                 |                 |  |               |         |        
|                  |                               | (In thousands) |  
|December 31, 2004 |                               |                |   |               |                     |  |                 |                 |  |               |         |         |  |  |       |      
|Assets:           |                               |                |   |               |                     |  |                 |                 |  |               |         |         |  |  |       |      
|                  | Securities available-for-sale |                | $ | 97,629        |                     |  |                 | 100 bp decrease |  |               | $       | 99,162  |  |  |       | 6.7   | % 
|                  |                               |                |   |               |                     |  | 100 bp increase |                 |  |               | 96,131  |         |  |  | (6.5  | )%   
|                  |                               |                |   |               |                     |  | 200 bp increase |                 |  |               | 94,675  |         |  |  | (12.9 | )%   
|                  |                               |                |   |               |                     |  | 300 bp increase |                 |  |               | 93,261  |         |  |  | (19.1 | )%   
|Liabilities:      |                               |                |   |               |                     |  |                 |                 |  |               |         |         |  |  |       |      
|                  | Fixed rate debt               |                | $ | 88,309        |                     |  |                 | 100 bp decrease |  |               | $       | 91,515  |  |  |       | (14.0 | )%
|                  |                               |                |   |               |                     |  | 100 bp increase |                 |  |               | 85,267  |         |  |  | 13.3  | %    
|                  |                               |                |   |               |                     |  | 200 bp increase |                 |  |               | 82,379  |         |  |  | 26.0  | %    
|                  |                               |                |   |               |                     |  | 300 bp increase |                 |  |               | 79,635  |         |  |  | 38.0  | %    
|December 31, 2003 |                               |                |   |               |                     |  |                 |                 |  |               |         |         |  |  |       |      
|Assets:           |                               |                |   |               |                     |  |                 |                 |  |               |         |         |  |  |       |      
|                  | Securities available-for-sale |                | $ | 155,095       |                     |  |                 | 100 bp decrease |  |               | $       | 157,917 |  |  |       | 3.5   | % 
|                  |                               |                |   |               |                     |  | 100 bp increase |                 |  |               | 152,354 |         |  |  | (3.4  | )%   
|                  |                               |                |   |               |                     |  | 200 bp increase |                 |  |               | 149,691 |         |  |  | (6.7  | )%   
|                  |                               |                |   |               |                     |  | 300 bp increase |                 |  |               | 147,117 |         |  |  | (9.9  | )%   
|Liabilities:      |                               |                |   |               |                     |  |                 |                 |  |               |         |         |  |  |       |      
|                  | Fixed rate debt               |                | $ | 104,290       |                     |  |                 | 100 bp decrease |  |               | $       | 108,094 |  |  |       | (16.7 | )%
|                  |                               |                |   |               |                     |  | 100 bp increase |                 |  |               | 100,681 |         |  |  | 15.8  | %    
|                  |                               |                |   |               |                     |  | 200 bp increase |                 |  |               | 97,254  |         |  |  | 30.8  | %    
|                  |                               |                |   |               |                     |  | 300 bp increase |                 |  |               | 94,000  |         |  |  | 45.0  | %    






|  |             
|- | ------------
|* | Less than 1%

Important Factors That May Affect Our Businesses, Our Results
of Operations and Our Stock Price.




| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | We are changing the focus and scale of our manufacturing
    efforts and may encounter problems or delays that could result
    in lost revenue.





35



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##### Table of Contents







| |                                                                                    
| | -----------------------------------------------------------------------------------
| | We expect to incur future operating losses and may never
    achieve profitability.





| |   |                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------
| |  | manufacture and supply our proprietary adjuvants to our
    commercial partners;                             
|
| |  | enter into corporate partnerships for product discovery,
    research, development and commercialization; and
|
| |  | obtain regulatory approvals for our product candidates.                                                      





| |                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------
| | We will need additional capital, and our ability to
    implement our existing financing plans and secure additional
    funding is uncertain.





| |   |                                                                                               
| | - | ----------------------------------------------------------------------------------------------
| |  | the time and costs involved in expanding our MPL adjuvant
    manufacturing capabilities;     
|
| |  | continued scientific progress in our discovery, research and
    product development programs;

36



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| |   |                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | progress with preclinical studies and clinical trials;                                                                                                                                                                                           
|
| |  | the ability of our partners to commercialize products containing
    technology we developed, including BEXXAR therapeutic regimen
    and vaccines containing our MPL and RC-529 adjuvants;                                                     
|
| |  | the magnitude and scope of our discovery, research and product
    development programs;                                                                                                                                                         
|
| |  | our ability to maintain existing, and establish additional,
    corporate partnerships and licensing arrangements;                                                                                                                               
|
| |  | the time and costs involved in obtaining regulatory approvals;                                                                                                                                                                                   
|
| |  | the costs involved in preparing, filing, prosecuting,
    maintaining, defending and enforcing patent claims, and the cost
    of any judgment that may be enforced against us for legal fees
    or other costs of other parties to such claims;
|
| |  | the potential need to develop, acquire or license new
    technologies and products; and                                                                                                                                                         
|
| |  | other factors beyond our control.                                                                                                                                                                                                                





| |   |                                       
| | - | --------------------------------------
| |  | public or private equity financings;  
|
| |  | public or private debt financings; and
|
| |  | capital lease transactions.           





| |                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Many of our product candidates are at an early stage of
    product development and we may not be able to successfully
    commercialize our product candidates.







| |   |                                                                          
| | - | -------------------------------------------------------------------------
| |  | be found unsafe or cause harmful side effects during clinical
    trials;
|
| |  | be found to be ineffective;                                              

37



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| |   |                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | take longer to progress through clinical trials than had been
    anticipated;                                                                                        
|
| |  | fail to receive necessary regulatory approvals;                                                                                                                       
|
| |  | be difficult or impossible to manufacture in commercial
    quantities at reasonable cost and with acceptable quality;                                                
|
| |  | be uneconomical to market;                                                                                                                                            
|
| |  | fail to be developed prior to the successful marketing of
    similar products by competitors;                                                                        
|
| |  | be impossible to market because they infringe on the proprietary
    rights of third parties or compete with products marketed by
    third parties that are superior;
|
| |  | not be as effective as alternative treatment methods;                                                                                                                 
|
| |  | not qualify for reimbursement from government and third-party
    payors; and                                                                                         
|
| |  | fail to achieve market acceptance.                                                                                                                                    





| |                                                                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to protect our trade secrets, we may be
    unable to protect our interests in proprietary know-how that is
    not patentable or for which we have elected not to seek patent
    protection.





| |                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to obtain, protect and enforce our patent
    rights, we may be unable to effectively protect or exploit our
    proprietary technology, inventions and improvements.







| |   |                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the pending patent applications we have filed or to which we
    have exclusive rights may not result in issued patents or may
    take longer than we expect to result in issued patents;
|
| |  | the claims of any patents that issue may not provide meaningful
    protection;                                                                                                           
|
| |  | we may be unable to develop additional proprietary technologies
    that are patentable;                                                                                                  

38



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| |   |                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the patents licensed or issued to us may not provide a
    competitive advantage;                                                                                                                                                                                          
|
| |  | other parties may challenge patents licensed or issued to us;                                                                                                                                                                                                              
|
| |  | disputes may arise regarding the invention and corresponding
    ownership rights in inventions and know-how resulting from the
    joint creation or use of intellectual property by us, our
    licensors, corporate partners and other scientific
    collaborators; and
|
| |  | other parties may design around our patented technologies.                                                                                                                                                                                                                 





| |                                                                                                                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to complete patient enrollment for our
    clinical trials on a timely basis, the development and
    commercialization of our product candidates will be delayed and,
    as a result, our business may be harmed.





| |   |                                                 
| | - | ------------------------------------------------
| |  | the size of the patient population;             
|
| |  | the design of the trial;                        
|
| |  | the proximity of patients to the clinical sites;
|
| |  | the number of clinical sites;                   
|
| |  | the eligibility criteria for the study;         
|
| |  | the availability of investigational agents;     
|
| |  | the existence of competing clinical trials; and 
|
| |  | the existence of alternative available products.





| |                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------
| | Our sale of BEXXAR therapeutic regimen and related assets
    and the subsequent restructuring of our business may prove
    unsuccessful.



39



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##### Table of Contents







| |                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------
| | Our restructuring may place additional strain on our
    resources and may harm the morale and performance of our
    personnel.





| |                                                                                                
| | -----------------------------------------------------------------------------------------------
| | We have a significant amount of debt, which could
    adversely affect our financial condition.







| |   |                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | limiting our ability to obtain any necessary financing in the
    future for working capital, capital expenditures, debt service
    requirements, or other purposes;                                               
|
| |  | limiting our flexibility in planning for, or reacting to,
    changes in our business;                                                                                                                              
|
| |  | placing us at a competitive disadvantage relative to our
    competitors who have lower levels of debt;                                                                                                             
|
| |  | making us more vulnerable to a downturn in our business or the
    economy generally; or                                                                                                                            
|
| |  | requiring us to use a substantial portion of our cash to pay
    principal and interest on our debt, instead of contributing
    those funds to other purposes such as working capital and
    capital expenditures.



| |                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to compete effectively in the highly
    competitive biotechnology and biopharmaceutical industries, our
    business will fail.



40



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| |   |                           
| | - | --------------------------
| |  | pharmaceutical companies; 
|
| |  | biotechnology companies;  
|
| |  | academic institutions; and
|
| |  | research organizations.   







| |   |                                          
| | - | -----------------------------------------
| |  | product efficacy and safety;             
|
| |  | timing and scope of regulatory approvals;
|
| |  | availability of resources;               
|
| |  | reimbursement coverage;                  
|
| |  | product price; and                       
|
| |  | patent position.                         





| |                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------
| | Because we have limited sale and distribution
    capabilities, we may be unable to successfully commercialize our
    product candidates.



41



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##### Table of Contents





| |                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our product candidates are subject to a government
    regulatory approval process that is uncertain, time-consuming
    and expensive and may not result in any approved
    products.









| |   |                                                                                        
| | - | ---------------------------------------------------------------------------------------
| |  | adversely affect the marketing of any products we develop;                             
|
| |  | impose significant additional costs on us;                                             
|
| |  | diminish any competitive advantages that we may attain; and                            
|
| |  | adversely affect our ability to receive royalties and generate
    revenue and profits.







| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | Any claims relating to our improper handling, storage or
    disposal of hazardous materials could be time-consuming and
    costly.



42



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| |                                                                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may be required to perform additional clinical trials
    or change the labeling of our products if we or others identify
    side effects after our products are on the market, which could
    harm sales of the affected products.





| |   |                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | regulatory approval may be withdrawn;                                                                                                                                                
|
| |  | reformulation of our products, additional clinical trials,
    changes in labeling of our products or changes to or
    re-approvals of our manufacturing facilities may be required;
|
| |  | sales of the affected products may drop significantly;                                                                                                                               
|
| |  | our reputation in the marketplace may suffer;                                                                                                                                        
|
| |  | lawsuits, including class action suits, may be brought against
    us; and                                                                                                           
|
| |  | breach or termination of our agreements to supply product
    candidates to third parties may result.                                                                                





| |                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Because we have limited sources of revenue, our results of
    operations are uncertain and may fluctuate significantly, which
    could cause the market price of our common stock to
    decrease.









| |                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------
| | Our financings and other transactions may result in
    dilution and a decline in the price of our common stock.



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| |                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If our corporate partnerships are unsuccessful or if we
    are unable to establish corporate partnerships in the future,
    our revenue growth and product development may be
    limited.







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we have a material corporate partnership with GSK that includes
    a guaranteed MPL supply agreement with GSK under which we have a
    collaborative effort to scale-up and increase the efficiency of
    our MPL adjuvant production process and an obligation to supply
    minimum quantities of our MPL adjuvant to GSK through 2012, and
    several related license and supply agreements with GSK, which
    grant GSK licenses to MPL adjuvant; and
|
| |  | in addition, we have adjuvant license and supply partnerships
    with ATL, Biomira, Wyeth and Aventis.                                                                                                                                                                                                                                                                                                                                                       







| |   |                                                                                             
| | - | --------------------------------------------------------------------------------------------
| |  | significant time and effort from our management team;                                       
|
| |  | effective allocation of our resources to multiple projects;                                 
|
| |  | coordination of our research with the research priorities of our
    corporate partners; and
|
| |  | an ability to attract and retain key management, scientific and
    other personnel.        

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| |                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------
| | If we are unable to gain access to patent and proprietary
    rights of others, we may be unable to compete
    effectively.





| |                                                                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to protect our trade secrets, we may be
    unable to protect our interests in proprietary know-how that is
    not patentable or for which we have elected not to seek patent
    protection.





| |                                                                                         
| | ----------------------------------------------------------------------------------------
| | If we are unable to protect our trademarks, we may be
    unable to compete effectively.



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| |                                                                                                            
| | -----------------------------------------------------------------------------------------------------------
| | Litigation regarding intellectual property rights owned or
    used by us may be costly and time-consuming.







| |   |                                                                                          
| | - | -----------------------------------------------------------------------------------------
| |  | defend against third-party claims of infringement;                                       
|
| |  | enforce our issued and licensed patents;                                                 
|
| |  | protect our trade secrets or know-how; or                                                
|
| |  | determine the enforceability, scope and validity of the
    proprietary rights of others.



| |                                                                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Acceptance of BEXXAR therapeutic regimen in the
    marketplace is uncertain and failure to achieve market
    acceptance will limit our potential royalty revenue from sales
    of BEXXAR therapeutic regimen by GSK.





| |                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------
| | If we do not successfully integrate potential future
    acquisitions, we may incur unexpected costs and disruptions to
    our business.





| |   |                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | exposure to unknown liabilities;                                                                                                                                                           
|
| |  | higher-than-expected acquisition and integration costs;                                                                                                                                    
|
| |  | difficulty and cost in combining the operations and personnel of
    acquired businesses with our operations and personnel;                                                                
|
| |  | disruption of our business and diversion of our
    managements time and attention to integrating or
    completing the development or commercialization of any acquired
    technologies;
|
| |  | impairment of relationships with key customers of acquired
    businesses due to changes in management and ownership;                                                                      

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| |   |                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | inability to retain key employees of acquired
    businesses; and                                                                                                                                       
|
| |  | increased amortization expenses if an acquisition results in
    significant intangible assets or potential write-downs of
    goodwill and other intangible assets due to impairment of the
    assets.





| |                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------
| | We depend heavily on the principal members of our
    management and scientific staff, the loss of any of whom could
    impair our ability to compete.







| |                                                                                                         
| | --------------------------------------------------------------------------------------------------------
| | Our stock price could be very volatile and shares of our
    common stock may suffer a decline in value.





| |   |                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------
| |  | announcements regarding the results of discovery efforts and
    preclinical and clinical activities by us or our competitors;
|
| |  | progress or delay of our or our competitors regulatory
    approvals;                                                        
|
| |  | announcements regarding the acquisition of technologies or
    companies by us or our competitors;                            
|
| |  | changes in our existing corporate partnerships or licensing
    arrangements;                                                 

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| |   |                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------
| |  | establishment of additional corporate partnerships or licensing
    arrangements by us or our competitors;                                      
|
| |  | technological innovations or new commercial products developed
    by us or our competitors;                                                    
|
| |  | changes in our or our competitors intellectual property
    portfolio;                                                                         
|
| |  | developments or disputes concerning our or our competitors
    proprietary rights;                                                             
|
| |  | issuance of new or changed securities analysts reports and
    their recommendations regarding us or our competitors;                          
|
| |  | changes in government regulations;                                                                                                              
|
| |  | economic and other external factors;                                                                                                            
|
| |  | additions or departures of any of our key personnel;                                                                                            
|
| |  | operating losses by us; and                                                                                                                     
|
| |  | actual or anticipated fluctuations in our quarterly financial
    and operating results and degree of trading liquidity in our
    common stock.





| |                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Product liability claims may damage our reputation and if
    insurance proves inadequate, the product liability claims may
    harm our financial position.





| |                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------
| | State laws and our certificate of incorporation may
    inhibit potential acquisition bids that could be beneficial to
    our stockholders.





| |   |                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------
| |  | allow our board to issue preferred stock without any vote or
    further action by the stockholders;
|
| |  | eliminate the right of stockholders to act by written consent
    without a meeting;                
|
| |  | eliminate cumulative voting in the election of directors;                                           
|
| |  | specify a supermajority requirement for stockholders to call a
    special meeting;                 
|
| |  | specify restrictive procedures for director nominations by
    stockholders; and                    
|
| |  | specify a supermajority requirement for stockholders to change
    the number of directors.         

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|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















| |                          
| | -------------------------
| | /s/ Ernst & Young
    LLP





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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




















| |                          
| | -------------------------
| | /s/ Ernst & Young
    LLP





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CORIXA CORPORATION


CONSOLIDATED BALANCE SHEETS


|                                            |                                                |                                                                                                         |         |            |         |  |         |            |         | 
|------------------------------------------- | ---------------------------------------------- | ------------------------------------------------------------------------------------------------------- | ------- | ---------- | ------- |  | ------- | ---------- | ------- | 
|                                            |                                                | December 31,                                                                                            |        
|                                            |                                                |                                                                                                         |        
|                                            |                                                | 2004                                                                                                    |         |            | 2003    | 
|                                            |                                                |                                                                                                         |         |            |         | 
|                                            |                                                | (In thousands)                                                                                          |        
|ASSETS                                     
|Current assets:                             |                                                |                                                                                                         |         |            |         |  |         |           
|                                            | Cash and cash equivalents                      |                                                                                                         | $       | 18,558     |         |  | $       | 36,890     |        
|                                            | Securities available-for-sale                  |                                                                                                         |         | 76,579     |         |  |         | 107,712    |        
|                                            | Accounts receivable                            |                                                                                                         |         | 13,588     |         |  |         | 7,090      |        
|                                            | Interest receivable                            |                                                                                                         |         | 524        |         |  |         | 1,204      |        
|                                            | Prepaid expenses and other current assets      |                                                                                                         |         | 4,670      |         |  |         | 8,111      |        
|                                            |                                                |                                                                                                         |         |            |         | 
|                                            |                                                | Total current assets                                                                                    |         |            | 113,919 |  |         |            | 161,007 | 
|Property and equipment, net                 |                                                |                                                                                                         | 44,237  |            |         |  | 26,337  |           
|Securities available-for-sale, non-current  |                                                |                                                                                                         | 21,050  |            |         |  | 47,383  |           
|Acquisition-related intangible assets, net  |                                                |                                                                                                         | 769     |            |         |  | 3,199   |           
|Deferred charges, deposits and other assets |                                                |                                                                                                         | 11,226  |            |         |  | 12,640  |           
|                                            |                                                |                                                                                                         |         |            |         | 
|                                            |                                                | Total assets                                                                                            |         | $          | 191,201 |  |         | $          | 250,566 | 
|                                            |                                                |                                                                                                         |         |            |         | 
|                                           
|LIABILITIES AND STOCKHOLDERS EQUITY       
|Current liabilities:                        |                                                |                                                                                                         |         |            |         |  |         |           
|                                            | Accounts payable and accrued liabilities       |                                                                                                         | $       | 27,370     |         |  | $       | 20,534     |        
|                                            | Dividend payable                               |                                                                                                         |         | 201        |         |  |         | 333        |        
|                                            | Current portion of deferred revenue            |                                                                                                         |         | 4,781      |         |  |         | 7,700      |        
|                                            | Current portion of long-term obligations       |                                                                                                         |         | 8,689      |         |  |         | 25,657     |        
|                                            |                                                |                                                                                                         |         |            |         | 
|                                            |                                                | Total current liabilities                                                                               |         |            | 41,041  |  |         |            | 54,224  | 
|Deferred revenue, less current portion      |                                                |                                                                                                         | 10,758  |            |         |  | 7,248   |           
|Long-term obligations, less current portion |                                                |                                                                                                         | 119,110 |            |         |  | 108,138 |           
|Commitments and contingencies               |                                                |                                                                                                         |         |            |         |  |         |           
|Stockholders equity:                       |                                                |                                                                                                         |         |            |         |  |         |           
|                                            | Convertible preferred stock, $0.001 par value: |                                                                                                         |         |            |         |  |         |            |        
|                                            |                                                | Authorized  10,000,000                                                                                 |         |            |         |  |         |            |         | 
|                                            |                                                | Designated Series A  12,500 shares; Issued
    and outstanding  12,500                                |         |            |        |  |         |            |        | 
|                                            |                                                | Designated Series B  37,500 shares; Issued
    and outstanding  37,500                                |         |            |        |  |         |            |        | 
|                                            | Common stock, $0.001 par value:                |                                                                                                         |         |            |         |  |         |            |        
|                                            |                                                | Authorized  100,000,000 shares; Issued and
    outstanding  59,515,619 in 2004 and 55,403,506 in 2003 |         |            | 60      |  |         |            | 55      | 
|                                            | Additional paid-in capital                     |                                                                                                         |         | 1,292,385  |         |  |         | 1,276,121  |        
|                                            | Deferred compensation                          |                                                                                                         |         |           |         |  |         | (404       | )      
|                                            | Accumulated other comprehensive loss           |                                                                                                         |         | (1,186     | )       |  |         | (256       | )      
|                                            | Accumulated deficit                            |                                                                                                         |         | (1,270,967 | )       |  |         | (1,194,560 | )      
|                                            |                                                |                                                                                                         |         |            |         | 
|                                            |                                                | Total stockholders equity                                                                              |         |            | 20,292  |  |         |            | 80,956  | 
|                                            |                                                |                                                                                                         |         |            |         | 
|                                            |                                                | Total liabilities and stockholders equity                                                              |         | $          | 191,201 |  |         | $          | 250,566 | 
|                                            |                                                |                                                                                                         |         |            |         | 



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CORIXA CORPORATION


CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                              |                                    |                                            |                          |        |       |        |         |        |       |         |          |         |       |         | 
|----------------------------------------------------------------------------- | ---------------------------------- | ------------------------------------------ | ------------------------ | ------ | ----- | ------ | ------- | ------ | ----- | ------- | -------- | ------- | ----- | ------- | 
|                                                                              |                                    | Year Ended December 31,                    |                         
|                                                                              |                                    |                                            |                         
|                                                                              |                                    | 2004                                       |                          |        | 2003  |        |         | 2002   |      
|                                                                              |                                    |                                            |                          |        |       |        |         |        |      
|                                                                              |                                    | (In thousands, except per share amounts)   |                         
|Revenue:                                                                      |                                    |                                            |                          |        |       |        |         |        |       |         |          |        
|                                                                              | Collaborative agreements           |                                            | $                        | 16,927 |       |        | $       | 29,911 |       |         | $        | 43,587  |      
|                                                                              | Product sales                      |                                            |                          | 4,547  |       |        |         | 3,031  |       |         |          | 2,547   |      
|                                                                              | Government grants                  |                                            |                          | 3,482  |       |        |         | 2,403  |       |         |          | 2,604   |      
|                                                                              |                                    |                                            |                          |        |       |        |         |        |      
|                                                                              |                                    |                                            | Total revenue            |        |       | 24,956 |         |        |       | 35,345  |          |         |       | 48,738  | 
|Operating expenses:                                                           |                                    |                                            |                          |        |       |        |         |        |       |         |          |        
|                                                                              | Research and development           |                                            |                          | 62,322 |       |        |         | 84,054 |       |         |          | 94,039  |      
|                                                                              | Sales, general and administrative  |                                            |                          | 10,254 |       |        |         | 11,762 |       |         |          | 19,043  |      
|                                                                              | Manufacturing                      |                                            |                          | 3,246  |       |        |         | 1,380  |       |         |          | 2,043   |      
|                                                                              | Restructuring                      |                                            |                          | 1,906  |       |        |         | 2,452  |       |         |          | 3,436   |      
|                                                                              | Impairment of lease-related assets |                                            |                          | 2,572  |       |        |         | 18,491 |       |         |          |        |      
|                                                                              | Goodwill impairment                |                                            |                          |       |       |        |         |       |       |         |          | 161,060 |      
|                                                                              |                                    |                                            |                          |        |       |        |         |        |      
|                                                                              |                                    |                                            | Total operating expenses |        |       | 80,300 |         |        |       | 118,139 |          |         |       | 279,621 | 
|                                                                              |                                    |                                            |                          |        |       |        |         |        |      
|Loss from operations                                                          |                                    |                                            | (55,344                  | )      |       |        | (82,794 | )      |       |         | (230,883 | )      
|Interest income                                                               |                                    |                                            | 2,875                    |        |       |        | 3,414   |        |       |         | 4,287    |        
|Interest expense                                                              |                                    |                                            | (6,798                   | )      |       |        | (4,378  | )      |       |         | (2,275   | )      
|Other income                                                                  |                                    |                                            | 9,849                    |        |       |        | 2,518   |        |       |         | 21,472   |        
|                                                                              |                                    |                                            |                          |        |       |        |         |        |      
|Net loss from continuing operations                                           |                                    |                                            | (49,418                  | )      |       |        | (81,240 | )      |       |         | (207,399 | )      
|Net loss from discontinued operations                                         |                                    |                                            | (26,989                  | )      |       |        | (2,679  | )      |       |         |         |        
|                                                                              |                                    |                                            |                          |        |       |        |         |        |      
|Net loss                                                                      |                                    |                                            | (76,407                  | )      |       |        | (83,919 | )      |       |         | (207,399 | )      
|Preferred stock dividend                                                      |                                    |                                            | (595                     | )      |       |        | (948    | )      |       |         | (767     | )      
|                                                                              |                                    |                                            |                          |        |       |        |         |        |      
|Net loss applicable to common stockholders                                    |                                    | $                                          | (77,002                  | )      |       | $      | (84,867 | )      |       | $       | (208,166 | )      
|                                                                              |                                    |                                            |                          |        |       |        |         |        |      
|Basic and diluted net loss per common share:                                  |                                    |                                            |                          |        |       |        |         |        |       |         |          |        
|                                                                              |                                    | From continuing operations                 |                          | $      | (0.87 | )      |         | $      | (1.53 | )       |          | $       | (4.65 | )      
|                                                                              |                                    |                                            |                          |        |       |        |         |        |      
|                                                                              |                                    | Discontinued operations                    |                          | $      | (0.48 | )      |         | $      | (0.05 | )       |          | $       |      |        
|                                                                              |                                    |                                            |                          |        |       |        |         |        |      
|                                                                              |                                    | Net loss applicable to common stockholders |                          | $      | (1.36 | )      |         | $      | (1.60 | )       |          | $       | (4.67 | )      
|                                                                              |                                    |                                            |                          |        |       |        |         |        |      
|Shares used in computation of basic and diluted net loss per
    common share |                                    |                                            | 56,569                   |        |       |        | 52,981  |        |       |         | 44,611   |        
|                                                                              |                                    |                                            |                          |        |       |        |         |        |      



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CORIXA CORPORATION


CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


|                                                                                                         |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |   |        |   |  |   |            |   |  |   |          |  
|-------------------------------------------------------------------------------------------------------- |  | --------------- | -- | ------------ | ------ | - | ---------- |  |  | -------- | ------ | ----------- | ------------- | - | -- | ------------ | ----- | - | ------------- | - |  | ------- | ------ | - | ------ | - | ------ | - |  | - | ---------- | - |  | - | -------- | -
|                                                                                                         |  |                 |    |              |        |   |            |  |  | Other    |        |             |               |   |   
|                                                                                                         |  | Preferred Stock |    | Common Stock |        |   | Additional |  |  |          |        | Accumulated |               |   |    |              | Total |  
|                                                                                                         |  |                 |    |              |        |   | Paid-In    |  |  | Deferred |        |             | Comprehensive |   |    | Accumulated  |       |   | Stockholders |  
|                                                                                                         |  | Shares          |    |              | Amount |   | Shares     |  |  | Amount   |        |             | Capital       |   |    | Compensation |       |   | Income (Loss) |   |  | Deficit |        |   | Equity |  
|                                                                                                         |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |  
|                                                                                                         |  | (In thousands)  |   
|Balance at December 31, 2001                                                                             |  |                 | 50 |              |        | $ |           |  |  |          | 41,573 |             |               | $ | 41 |              |       | $ | 1,187,987     |   |  | $       | (3,996 | ) |        | $ | 975    |   |  | $ | (903,242   | ) |  | $ | 281,765  |  
|Preferred stock dividend                                                                                 |  |                 |   |              |        |   |           |  |  |          | 147    |             |               |   |   |              |       |   | 116           |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 116      |  
|Stock options exercised                                                                                  |  |                 |   |              |        |   |           |  |  |          | 52     |             |               |   |   |              |       |   | 90            |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 90       |  
|Issuance of common stock under the employee stock purchase plan                                          |  |                 |   |              |        |   |           |  |  |          | 138    |             |               |   |   |              |       |   | 736           |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 736      |  
|Issuance of common stock, net of offering costs of $2,622                                                |  |                 |   |              |        |   |           |  |  |          | 8,298  |             |               |   | 9  |              |       |   | 50,038        |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 50,047   |  
|Remeasurement and issuance of stock options in exchange for
    consulting services                      |  |                 |   |              |        |   |           |  |  |          | 9      |             |               |   |   |              |       |   | (112          | ) |  |         |       |   |        |   |       |   |  |   |           |   |  |   | (112     | )
|Reclassification of redeemable common stock to equity                                                    |  |                 |   |              |        |   |           |  |  |          |       |             |               |   |   |              |       |   | 2,000         |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 2,000    |  
|Amortization of deferred compensation, net of $1,897 reversal
    for terminated employees               |  |                 |   |              |        |   |           |  |  |          |       |             |               |   |   |              |       |   | (1,897        | ) |  |         | 3,329  |   |        |   |       |   |  |   |           |   |  |   | 1,432    |  
|Comprehensive loss:                                                                                      |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |   |        |   |  |   |            |   |  |   |          |  
|Net unrealized loss on securities available-for-sale                                                     |  |                 |   |              |        |   |           |  |  |          |       |             |               |   |   |              |       |   |              |   |  |         |       |   |        |   | (283   | ) |  |   |           |   |  |   | (283     | )
|Net loss                                                                                                 |  |                 |   |              |        |   |           |  |  |          |       |             |               |   |   |              |       |   |              |   |  |         |       |   |        |   |       |   |  |   | (207,399   | ) |  |   | (207,399 | )
|                                                                                                         |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |   |       
|Comprehensive loss                                                                                       |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |   |        |   |  |   |            |   |  |   | (207,682 | )
|                                                                                                         |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |   |       
|Balance at December 31, 2002                                                                             |  |                 | 50 |              |        |   |           |  |  |          | 50,217 |             |               |   | 50 |              |       |   | 1,238,958     |   |  |         | (667   | ) |        |   | 692    |   |  |   | (1,110,641 | ) |  |   | 128,392  |  
|Preferred stock dividend                                                                                 |  |                 |   |              |        |   |           |  |  |          | 147    |             |               |   |   |              |       |   | 19            |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 19       |  
|Stock options exercised                                                                                  |  |                 |   |              |        |   |           |  |  |          | 115    |             |               |   |   |              |       |   | 359           |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 359      |  
|Issuance of common stock under the employee stock purchase plan                                          |  |                 |   |              |        |   |           |  |  |          | 159    |             |               |   |   |              |       |   | 840           |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 840      |  
|Issuance of common stock                                                                                 |  |                 |   |              |        |   |           |  |  |          | 4,731  |             |               |   | 5  |              |       |   | 35,670        |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 35,675   |  
|Remeasurement of stock options in exchange for consulting
    services                                   |  |                 |   |              |        |   |           |  |  |          | 34     |             |               |   |   |              |       |   | 355           |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 355      |  
|Amortization of deferred compensation, net of $80 reversal for
    terminated employees                  |  |                 |   |              |        |   |           |  |  |          |       |             |               |   |   |              |       |   | (80           | ) |  |         | 263    |   |        |   |       |   |  |   |           |   |  |   | 183      |  
|Comprehensive loss:                                                                                      |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |   |        |   |  |   |            |   |  |   |          |  
|Net unrealized loss on securities available-for-sale                                                     |  |                 |   |              |        |   |           |  |  |          |       |             |               |   |   |              |       |   |              |   |  |         |       |   |        |   | (948   | ) |  |   |           |   |  |   | (948     | )
|Net loss                                                                                                 |  |                 |   |              |        |   |           |  |  |          |       |             |               |   |   |              |       |   |              |   |  |         |       |   |        |   |       |   |  |   | (83,919    | ) |  |   | (83,919  | )
|                                                                                                         |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |   |       
|Comprehensive loss                                                                                       |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |   |        |   |  |   |            |   |  |   | (84,867  | )
|                                                                                                         |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |   |       
|Balance at December 31, 2003                                                                             |  |                 | 50 |              |        |   |           |  |  |          | 55,403 |             |               |   | 55 |              |       |   | 1,276,121     |   |  |         | (404   | ) |        |   | (256   | ) |  |   | (1,194,560 | ) |  |   | 80,956   |  
|Preferred stock dividend                                                                                 |  |                 |   |              |        |   |           |  |  |          | 147    |             |               |   |   |              |       |   | 132           |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 132      |  
|Stock options exercised                                                                                  |  |                 |   |              |        |   |           |  |  |          | 296    |             |               |   |   |              |       |   | 775           |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 775      |  
|Issuance of common stock under the employee stock purchase plan                                          |  |                 |   |              |        |   |           |  |  |          | 187    |             |               |   |   |              |       |   | 736           |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 736      |  
|Issuance of common stock                                                                                 |  |                 |   |              |        |   |           |  |  |          | 3,482  |             |               |   | 5  |              |       |   | 14,995        |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 15,000   |  
|Remeasurement of stock options in exchange for consulting
    services                                   |  |                 |   |              |        |   |           |  |  |          |       |             |               |   |   |              |       |   | 4             |   |  |         |       |   |        |   |       |   |  |   |           |   |  |   | 4        |  
|Amortization of deferred compensation, net of $393 reversal for
    terminated employees and consultants |  |                 |   |              |        |   |           |  |  |          |       |             |               |   |   |              |       |   | (378          | ) |  |         | 404    |   |        |   |       |   |  |   |           |   |  |   | 26       |  
|Comprehensive loss:                                                                                      |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |   |        |   |  |   |            |   |  |   |          |  
|Net unrealized loss on securities available-for-sale                                                     |  |                 |   |              |        |   |           |  |  |          |       |             |               |   |   |              |       |   |              |   |  |         |       |   |        |   | (930   | ) |  |   |           |   |  |   | (930     | )
|Net loss                                                                                                 |  |                 |   |              |        |   |           |  |  |          |       |             |               |   |   |              |       |   |              |   |  |         |       |   |        |   |       |   |  |   | (76,407    | ) |  |   | (76,407  | )
|                                                                                                         |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |   |       
|Comprehensive loss                                                                                       |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |   |        |   |  |   |            |   |  |   | (77, 338 | )
|                                                                                                         |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |   |       
|Balance at December 31, 2004                                                                             |  |                 | 50 |              |        | $ |           |  |  |          | 59,515 |             |               | $ | 60 |              |       | $ | 1,292,385     |   |  | $       |       |   |        | $ | (1,186 | ) |  | $ | (1,270,967 | ) |  | $ | 20,292   |  
|                                                                                                         |  |                 |    |              |        |   |            |  |  |          |        |             |               |   |    |              |       |   |               |   |  |         |        |   |        |   |       



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CORIXA CORPORATION


CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                               |                                                                                      |                                           |         |         |        |   |         |          |        |   |          |         |        |  
|------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------ | ----------------------------------------- | ------- | ------- | ------ | - | ------- | -------- | ------ | - | -------- | ------- | ------ | -
|                                                                               |                                                                                      | Year Ended December 31,                   |        
|                                                                               |                                                                                      |                                           |        
|                                                                               |                                                                                      | 2004                                      |         |         | 2003   |   |         | 2002     |       
|                                                                               |                                                                                      |                                           |         |         |        |   |         |          |       
|                                                                               |                                                                                      | (In thousands)                            |        
|Operating activities                                                           |                                                                                      |                                           |         |         |        |   |         |          |        |   |          |        
|Net loss                                                                       |                                                                                      | $                                         | (76,407 | )       |        | $ | (83,919 | )        |        | $ | (207,399 | )      
|Adjustments to reconcile net loss to net cash used in operating
    activities |                                                                                      |                                           |         |         |        |   |         |          |        |   |          |        
|                                                                               | Impairment of lease-related assets                                                   |                                           |         | 2,572   |        |   |         | 18,491   |        |   |          |        |       
|                                                                               | Goodwill impairment                                                                  |                                           |         |        |        |   |         |         |        |   |          | 161,060 |       
|                                                                               | Amortization of deferred compensation                                                |                                           |         | 26      |        |   |         | 183      |        |   |          | 1,432   |       
|                                                                               | Depreciation and amortization                                                        |                                           |         | 8,372   |        |   |         | 10,119   |        |   |          | 12,606  |       
|                                                                               | Equity instruments remeasured and issued in exchange for
    technology and services |                                           |         | 4       |        |   |         | 355      |        |   |          | (112    | )     
|                                                                               | Gain on sale of equipment                                                            |                                           |         |        |        |   |         |         |        |   |          | (998    | )     
|                                                                               | Gain on sale of securities available-for-sale                                        |                                           |         | (169    | )      |   |         | (452     | )      |   |          |        |       
|                                                                               | Changes in certain assets and liabilities:                                           |                                           |         |         |        |   |         |          |        |   |          |         |       
|                                                                               |                                                                                      | Accounts receivable                       |         |         | (6,498 | ) |         |          | 1,829  |   |          |         | (3,387 | )
|                                                                               |                                                                                      | Interest receivable                       |         |         | 680    |   |         |          | (415   | ) |          |         | 368    |  
|                                                                               |                                                                                      | Prepaid expenses and other current assets |         |         | 4,855  |   |         |          | (2,016 | ) |          |         | 2,166  |  
|                                                                               |                                                                                      | Accounts payable and accrued liabilities  |         |         | 6,836  |   |         |          | 8,551  |   |          |         | (4,746 | )
|                                                                               |                                                                                      | Deferred revenue                          |         |         | 591    |   |         |          | (5,242 | ) |          |         | (5,951 | )
|                                                                               |                                                                                      |                                           |         |         |        |   |         |          |       
|Net cash used in operating activities                                          |                                                                                      |                                           | (59,138 | )       |        |   | (52,516 | )        |        |   | (44,961  | )      
|Investing activities                                                           |                                                                                      |                                           |         |         |        |   |         |          |        |   |          |        
|                                                                               | Purchases of securities available-for-sale                                           |                                           |         | (90,635 | )      |   |         | (200,037 | )      |   |          | (79,896 | )     
|                                                                               | Proceeds from maturities of securities available-for-sale                            |                                           |         | 65,911  |        |   |         | 38,679   |        |   |          | 27,565  |       
|                                                                               | Proceeds from sale of securities available-for-sale                                  |                                           |         | 81,429  |        |   |         | 75,159   |        |   |          | 68,039  |       
|                                                                               | Purchases of property and equipment                                                  |                                           |         | (26,414 | )      |   |         | (6,679   | )      |   |          | (6,255  | )     
|                                                                               |                                                                                      |                                           |         |         |        |   |         |          |       
|Net cash provided by (used in) investing activities                            |                                                                                      |                                           | 30,291  |         |        |   | (92,878 | )        |        |   | 9,453    |        
|Financing activities                                                           |                                                                                      |                                           |         |         |        |   |         |          |        |   |          |        
|                                                                               | Proceeds from issuance of common stock                                               |                                           |         | 1,511   |        |   |         | 36,877   |        |   |          | 50,873  |       
|                                                                               | Principal payments made on long-term obligations                                     |                                           |         | (5,546  | )      |   |         | 1,724    |        |   |          | (6,118  | )     
|                                                                               | Proceeds from long-term obligations, net                                             |                                           |         | 14,550  |        |   |         | 96,320   |        |   |          | 4,778   |       
|                                                                               |                                                                                      |                                           |         |         |        |   |         |          |       
|Net cash provided by financing activities                                      |                                                                                      |                                           | 10,515  |         |        |   | 134,921 |          |        |   | 49,533   |        
|                                                                               |                                                                                      |                                           |         |         |        |   |         |          |       
|Net (decrease) increase in cash and cash equivalents                           |                                                                                      |                                           | (18,332 | )       |        |   | (10,473 | )        |        |   | 14,025   |        
|Cash and cash equivalents at beginning of period                               |                                                                                      |                                           | 36,890  |         |        |   | 47,363  |          |        |   | 33,338   |        
|                                                                               |                                                                                      |                                           |         |         |        |   |         |          |       
|Cash and cash equivalents at end of period                                     |                                                                                      | $                                         | 18,558  |         |        | $ | 36,890  |          |        | $ | 47,363   |        
|                                                                               |                                                                                      |                                           |         |         |        |   |         |          |       
|Supplemental Disclosures of Cash Flow Information:                             |                                                                                      |                                           |         |         |        |   |         |          |        |   |          |        
|                                                                               | Interest paid                                                                        |                                           | $       | 6,112   |        |   | $       | 1,916    |        |   | $        | 2,667   |       
|Supplemental Schedule of Noncash Investing and Financing
    Activities:       |                                                                                      |                                           |         |         |        |   |         |          |        |   |          |        
|                                                                               | Common stock issued for payment of preferred stock dividend                          |                                           | $       | 727     |        |   | $       | 967      |        |   | $        | 880     |       
|                                                                               | Common stock issued for payment of long-term obligation                              |                                           | $       | 15,000  |        |   | $       |         |        |   | $        |        |       
|                                                                               | Reclassification of redeemable common stock to equity                                |                                           | $       |        |        |   | $       |         |        |   | $        | 2,000   |       



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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




|   |                                                                           
|-- | --------------------------------------------------------------------------
|1. | Description of Business and Summary of Significant Accounting
    Policies



| |                                                  
| | -------------------------------------------------
| | Description of Business and Basis of Presentation





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Vaccine Adjuvants  compounds or additives that, when
    combined with a vaccine, boost the bodys immune response
    to antigens contained in the vaccine; and                                                                                                                                                                                                                                                                                           
|
| |  | TLR4 agonists and antagonists  compounds that
    interact with a type of cell surface receptor that recognizes
    distinct molecular signatures presented by invading pathogens
    and generates an immune response. These responses may be useful
    in the prevention and/or therapy of many conditions, including
    seasonal allergic rhinitis, broad infection prevention, chronic
    obstructive pulmonary disease and inflammatory conditions.







Cash and Cash Equivalents






| |                              
| | -----------------------------
| | Securities Available-for-Sale







| |   |                                                                 
| | - | ----------------------------------------------------------------
| |  | how long and by how much the fair value has been below its cost;

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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |   |                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the financial condition and near-term prospects of the issuer of
    the security, including any specific events that may affect its
    operation or earning potential;
|
| |  | our intent and ability to keep the security long enough for it
    to recover its value;                                                                                
|
| |  | any downgrades of the security by a rating agency; and                                                                                                                  
|
| |  | any reductions or eliminations of dividends, or non-payment of
    scheduled interest payments.                                                                         





| |                              
| | -----------------------------
| | Concentrations of Credit Risk







| |            
| | -----------
| | Inventories





| |                       
| | ----------------------
| | Property and Equipment





| |                                
| | -------------------------------
| | Impairment of Long-Lived Assets



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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                      
| | -------------------------------------
| | Acquisition-Related Intangible Assets











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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                            |  |              |     | 
|--------------------------- |  | ------------ | --- | 
|                            |  | Expected     |    
|                            |  | Amortization |    
|Year Ending December 31,    |  | Expense      |    
|                            |  |              |    
|2005                        |  | $            | 439 | 
|2006                        |  |              | 330 | 
|2007                        |  |              |    | 
|2008                        |  |              |    | 
|2009                        |  |              |    | 
|Thereafter                  |  |              |    | 
|                            |  |              |    
|Total expected amortization |  | $            | 769 | 
|                            |  |              |    





| |                         
| | ------------------------
| | Stock-Based Compensation

Accounting for Stock-Based
Compensation Accounting for
Stock issued to Employees




|                                                                                                                 |                          |                                       |         |         |      |   |         |         |   |   |          |          |  
|---------------------------------------------------------------------------------------------------------------- | ------------------------ | ------------------------------------- | ------- | ------- | ---- | - | ------- | ------- | - | - | -------- | -------- | -
|                                                                                                                 |                          | Year Ended December 31,               |        
|                                                                                                                 |                          |                                       |        
|                                                                                                                 |                          | 2004                                  |         |         | 2003 |   |         | 2002    |  
|                                                                                                                 |                          |                                       |         |         |      |   |         |         |  
|                                                                                                                 |                          | (In thousands, except per share data) |        
|Net loss:                                                                                                        |                          |                                       |         |         |      |   |         |         |   |   |          |         
|                                                                                                                 | As reported              |                                       | $       | (76,407 | )    |   | $       | (83,919 | ) |   | $        | (207,399 | )
|Additional stock-based employee compensation expense determined
    under fair value based method for all awards |                          |                                       | (7,363  | )       |      |   | (10,936 | )       |   |   | (16,822  | )       
|                                                                                                                 |                          |                                       |         |         |      |   |         |         |  
|                                                                                                                 | Pro forma net loss       |                                       |         | (83,770 | )    |   |         | (94,855 | ) |   |          | (224,221 | )
|                                                                                                                 | Preferred stock dividend |                                       |         | (595    | )    |   |         | (948    | ) |   |          | (767     | )
|                                                                                                                 |                          |                                       |         |         |      |   |         |         |  
|Pro forma net loss applicable to common stockholders                                                             |                          | $                                     | (84,365 | )       |      | $ | (95,803 | )       |   | $ | (224,988 | )       
|                                                                                                                 |                          |                                       |         |         |      |   |         |         |  
|Net loss per common share applicable to common stockholders:                                                     |                          |                                       |         |         |      |   |         |         |   |   |          |         
|                                                                                                                 | As reported              |                                       | $       | (1.36   | )    |   | $       | (1.60   | ) |   | $        | (4.67    | )
|                                                                                                                 | Pro forma                |                                       |         | (1.49   | )    |   |         | (1.81   | ) |   |          | (5.04    | )

Accounting for Equity Instruments That
Are Issued to Other Than


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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Employees for Acquiring, or in Conjunction with Selling,
Goods or Services,




| |                 
| | ----------------
| | Use of Estimates





| |                            
| | ---------------------------
| | Other Financial Instruments



|                              |  |                   |         |  |                   |   |        |                |  |   |            |  |  |   |         | 
|----------------------------- |  | ----------------- | ------- |  | ----------------- | - | ------ | -------------- |  | - | ---------- |  |  | - | ------- | 
|                              |  | December 31, 2004 |         |  | December 31, 2003 |  
|                              |  |                   |         |  |                   |  
|                              |  | Carrying Value    |         |  | Fair Value        |   |        | Carrying Value |  |   | Fair Value | 
|                              |  |                   |         |  |                   |   |        |                |  |   |            | 
|Securities available-for-sale |  | $                 | 98,815  |  |                   | $ | 97,629 |                |  | $ | 155,351    |  |  | $ | 155,095 | 
|Long-term fixed rate debt     |  | $                 | 104,560 |  |                   | $ | 88,309 |                |  | $ | 105,665    |  |  | $ | 104,290 | 



| |        
| | -------
| | Revenue







| |                                  
| | ---------------------------------
| | Research and Development Expenses

Accounting for
Research and Development Costs,


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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                   
| | ------------------
| | Net Loss Per Share





| |                    
| | -------------------
| | Segment Information

Disclosures About Segments of
an Enterprise and Related Information




| |                              
| | -----------------------------
| | New Accounting Pronouncements

Share-Based Payment  An Amendment of FASB
Statements No. 123 and 95


The Meaning of Other-than-Temporary
Impairment and its Application to Certain Investments




| |                  
| | -----------------
| | Reclassifications



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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                                                
|-- | -----------------------------------------------
|2. | Scientific Collaborative and License Agreements

GSK.








Recording Revenue Gross as a Principal versus Net as an
Agent


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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








GSK: Manufacture and Supply Agreement.




Amersham Health.


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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Wyeth.


Zambon Group and JT.


Kirin.


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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Medicis.




Genentech.




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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                              
|-- | -----------------------------
|3. | Securities Available-For-Sale



|                  |                            |           |         |        |            |   |       |            |  |      |        |      |   |   |         |        | 
|----------------- | -------------------------- | --------- | ------- | ------ | ---------- | - | ----- | ---------- |  | ---- | ------ | ---- | - | - | ------- | ------ | 
|                  |                            |           |         | Gross  |            |   | Gross |            |  | Fair |       
|                  |                            | Amortized |         |        | Unrealized |   |       | Unrealized |  |      | Market |     
|                  |                            | Cost      |         |        | Gain       |   |       | Loss       |  |      | Value  |     
|                  |                            |           |         |        |            |   |       |            |  |      |        |     
|December 31, 2004 |                            |           |         |        |            |   |       |            |  |      |        |      |   |   |         |       
|                  | U.S. government agencies   |           | $       | 69,467 |            |   | $     | 6          |  |      | $      | (824 | ) |   | $       | 68,649 | 
|                  | State and municipal        |           |         | 7,424  |            |   |       | 1          |  |      |        | (120 | ) |   |         | 7,305  | 
|                  | U.S. corporate obligations |           |         | 20,518 |            |   |       | 19         |  |      |        | (268 | ) |   |         | 20,269 | 
|                  | Other                      |           |         | 1,406  |            |   |       |           |  |      |        |     |   |   |         | 1,406  | 
|                  |                            |           |         |        |            |   |       |            |  |      |        |     
|                  |                            | $         | 98,815  |        |            | $ | 26    |            |  | $    | (1,212 | )    |   | $ | 97,629  |       
|                  |                            |           |         |        |            |   |       |            |  |      |        |     
|December 31, 2003 |                            |           |         |        |            |   |       |            |  |      |        |      |   |   |         |       
|                  | U.S. government agencies   |           | $       | 91,306 |            |   | $     | 117        |  |      | $      | (520 | ) |   | $       | 90,903 | 
|                  | State and municipal        |           |         | 24,098 |            |   |       | 62         |  |      |        | (119 | ) |   |         | 24,041 | 
|                  | U.S. corporate obligations |           |         | 35,916 |            |   |       | 231        |  |      |        | (27  | ) |   |         | 36,120 | 
|                  | Other                      |           |         | 4,031  |            |   |       |           |  |      |        |     |   |   |         | 4,031  | 
|                  |                            |           |         |        |            |   |       |            |  |      |        |     
|                  |                            | $         | 155,351 |        |            | $ | 410   |            |  | $    | (666   | )    |   | $ | 155,095 |       
|                  |                            |           |         |        |            |   |       |            |  |      |        |     



|                  |                               |           |        |        |        |   |        |        | 
|----------------- | ----------------------------- | --------- | ------ | ------ | ------ | - | ------ | ------ | 
|                  |                               |           |        | Fair   |       
|                  |                               | Amortized |        |        | Market |  
|                  |                               | Cost      |        |        | Value  |  
|                  |                               |           |        |        |        |  
|December 31, 2004 |                               |           |        |        |        |   |        |       
|                  | Due in one year or less       |           | $      | 52,170 |        |   | $      | 51,728 | 
|                  | Due in 1 year through 4 years |           |        | 46,645 |        |   |        | 45,901 | 
|                  |                               |           |        |        |        |  
|                  |                               | $         | 98,815 |        |        | $ | 97,629 |       
|                  |                               |           |        |        |        |  



|                        |                            |                     |        |        |                   |   |      |       |   |   |            |        |  |       |      |      |            |   |        |        |  |   |        |      |  
|----------------------- | -------------------------- | ------------------- | ------ | ------ | ----------------- | - | ---- | ----- | - | - | ---------- | ------ |  | ----- | ---- | ---- | ---------- | - | ------ | ------ |  | - | ------ | ---- | -
|                        |                            | Less than 12 Months |        |        | 12 Months or More |   |      | Total |  
|                        |                            |                     |        |        |                   |   |      |       |  
|                        |                            | Fair                |        |        | Unrealized        |   |      | Fair  |   |   | Unrealized |        |  | Fair  |      |      | Unrealized |  
|Description of Security |                            | Value               |        |        | Losses            |   |      | Value |   |   | Losses     |        |  | Value |      |      | Losses     |  
|                        |                            |                     |        |        |                   |   |      |       |   |   |            |        |  |       |      |      |            |  
|Fixed Maturities:       |                            |                     |        |        |                   |   |      |       |   |   |            |        |  |       |      |      |            |   |        |        |  |   |        |     
|                        | U.S. government agencies   |                     | $      | 21,090 |                   |   | $    | (136  | ) |   | $          | 41,025 |  |       | $    | (688 | )          |   | $      | 62,115 |  |   | $      | (824 | )
|                        | State and municipal        |                     |        | 4,413  |                   |   |      | (90   | ) |   |            | 2,445  |  |       |      | (30  | )          |   |        | 6,858  |  |   |        | (120 | )
|                        | U.S. corporate obligations |                     |        | 18,964 |                   |   |      | (268  | ) |   |            |       |  |       |      |     |            |   |        | 18,964 |  |   |        | (268 | )
|                        |                            |                     |        |        |                   |   |      |       |   |   |            |        |  |       |      |      |            |  
|                        |                            | $                   | 44,467 |        |                   | $ | (494 | )     |   | $ | 43,470     |        |  | $     | (718 | )    |            | $ | 87,937 |        |  | $ | (1,212 | )   
|                        |                            |                     |        |        |                   |   |      |       |   |   |            |        |  |       |      |      |            |  



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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |   |                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | That the majority of such losses for securities in an unrealized
    loss position for less than 12 months were interest rate
    related                                                                                                       
|
| |  | For securities in an unrealized loss position for 12 months
    or more, the financial condition and near-term prospects of the
    issuer of the security including any specific events that may
    affect its operations or earning potential
|
| |  | Our intent and ability is to hold the security long enough to
    recover its value                                                                                                                                                             





|   |                       
|-- | ----------------------
|4. | Property and Equipment



|                                          |  |              |         |   |      |   |         |  
|----------------------------------------- |  | ------------ | ------- | - | ---- | - | ------- | -
|                                          |  | December 31, |        
|                                          |  |              |        
|                                          |  | 2004         |         |   | 2003 |  
|                                          |  |              |         |   |      |  
|Laboratory equipment                      |  | $            | 16,469  |   |      | $ | 18,399  |  
|Land and buildings                        |  |              | 9,794   |   |      |   | 8,723   |  
|Leasehold improvements                    |  |              | 31,909  |   |      |   | 12,632  |  
|Construction in progress                  |  |              | 5,731   |   |      |   | 4,726   |  
|Computers and office equipment            |  |              | 10,272  |   |      |   | 14,182  |  
|                                          |  |              |         |   |      |  
|                                          |  |              | 74,175  |   |      |   | 58,662  |  
|Accumulated depreciation and amortization |  |              | (29,938 | ) |      |   | (32,325 | )
|                                          |  |              |         |   |      |  
|                                          |  | $            | 44,237  |   |      | $ | 26,337  |  
|                                          |  |              |         |   |      |  





|   |                                         
|-- | ----------------------------------------
|5. | Accounts Payable and Accrued Liabilities



|                                           |  |              |        |  |      |   |        | 
|------------------------------------------ |  | ------------ | ------ |  | ---- | - | ------ | 
|                                           |  | December 31, |       
|                                           |  |              |       
|                                           |  | 2004         |        |  | 2003 |  
|                                           |  |              |        |  |      |  
|Trade accounts payable                     |  | $            | 6,312  |  |      | $ | 5,469  | 
|Severance                                  |  |              | 3,620  |  |      |   | 1,161  | 
|Employee compensation and related expenses |  |              | 3,501  |  |      |   | 3,447  | 
|Deferred rent                              |  |              | 2,662  |  |      |   | 949    | 
|Accrued research and development expenses  |  |              | 1,961  |  |      |   | 1,106  | 
|Accrued interest                           |  |              | 2,558  |  |      |   | 2,383  | 
|Other accrued liabilities                  |  |              | 6,756  |  |      |   | 6,019  | 
|                                           |  |              |        |  |      |  
|                                           |  | $            | 27,370 |  |      | $ | 20,534 | 
|                                           |  |              |        |  |      |  

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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                            
|-- | -------------------------------------------
|6. | Long-term Obligations and Lease Obligations



|                                            |                             |              |         |         |      |   |         |         | 
|------------------------------------------- | --------------------------- | ------------ | ------- | ------- | ---- | - | ------- | ------- | 
|                                            |                             | December 31, |        
|                                            |                             |              |        
|                                            |                             | 2004         |         |         | 2003 |  
|                                            |                             |              |         |         |      |  
|Convertible notes                           |                             | $            | 100,000 |         |      | $ | 100,000 |        
|Credit line and loan from corporate partner |                             |              | 5,000   |         |      |   | 20,000  |        
|Bank loans                                  |                             |              | 22,799  |         |      |   | 13,795  |        
|                                            |                             |              |         |         |      |  
|                                            |                             |              | 127,799 |         |      |   | 133,795 |        
|Less current portion of obligations         |                             |              | 8,689   |         |      |   | 25,657  |        
|                                            |                             |              |         |         |      |  
|                                            | Total long-term obligations |              | $       | 119,110 |      |   | $       | 108,138 | 
|                                            |                             |              |         |         |      |  















68



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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                         |                        |             |         |         |                   |   |       |            |  |   |        |        | 
|------------------------ | ---------------------- | ----------- | ------- | ------- | ----------------- | - | ----- | ---------- |  | - | ------ | ------ | 
|                         |                        | Convertible |         |         | Loan from         |   |       |           
|Year Ending December 31, |                        | Notes       |         |         | Corporate Partner |   |       | Bank Loans | 
|                         |                        |             |         |         |                   |   |       |            | 
|2005                     |                        | $           |        |         |                   | $ | 5,000 |            |  | $ | 3,694  |       
|2006                     |                        |             |        |         |                   |   |      |            |  |   | 1,650  |       
|2007                     |                        |             |        |         |                   |   |      |            |  |   | 1,439  |       
|2008                     |                        |             | 100,000 |         |                   |   |      |            |  |   | 1,466  |       
|2009                     |                        |             |        |         |                   |   |      |            |  |   |       |       
|Thereafter               |                        |             |        |         |                   |   |      |            |  |   | 14,550 |       
|                         |                        |             |         |         |                   |   |       |            | 
|                         | Total minimum payments |             | $       | 100,000 |                   |   | $     | 5,000      |  |   | $      | 22,799 | 
|                         |                        |             |         |         |                   |   |       |            | 



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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                         |                        |           |        |         | 
|------------------------ | ---------------------- | --------- | ------ | ------- | 
|                         |                        | Operating |       
|Year Ending December 31, |                        | Leases    |       
|                         |                        |           |       
|2005                     |                        | $         | 10,690 |        
|2006                     |                        |           | 9,122  |        
|2007                     |                        |           | 9,317  |        
|2008                     |                        |           | 9,514  |        
|2009                     |                        |           | 9,907  |        
|Thereafter               |                        |           | 60,135 |        
|                         |                        |           |       
|                         | Total minimum payments |           | $      | 108,685 | 
|                         |                        |           |       







|   |                     
|-- | --------------------
|7. | Stockholders Equity



| |                
| | ---------------
| | Preferred Stock



|                   |  |                |       | 
|------------------ |  | -------------- | ----- | 
|Number of Warrants |  | Exercise Price |      
|                   |  |                |      
|312,500            |  | $              | 8.50  | 
|130,028            |  | $              | 7.69  | 
|30,540             |  | $              | 36.84 | 
|237,500            |  | $              | 18.22 | 



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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|              |  |          |        |  |          |   |         |            |  |   |         |  |  |       |        |  |            |   |         |  |  |   |           | 
|------------- |  | -------- | ------ |  | -------- | - | ------- | ---------- |  | - | ------- |  |  | ----- | ------ |  | ---------- | - | ------- |  |  | - | --------- | 
|              |  | Series A |        |  | Series B |  
|              |  |          |        |  |          |  
|              |  | Shares   |        |  | Value    |   |         | Cash value |  |   | Shares  |  |  | Value |        |  | Cash value |  
|              |  |          |        |  |          |   |         |            |  |   |         |  |  |       |        |  |            |  
|April 2004    |  |          | 73,529 |  |          | $ | 456,000 |            |  | $ | 625,000 |  |  |       |        |  |            |   |         |  |  |   |           | 
|December 2004 |  |          |        |  |          |   |         |            |  |   |         |  |  |       | 73,299 |  |            | $ | 271,000 |  |  | $ | 1,900,000 | 
|April 2003    |  |          | 73,529 |  |          | $ | 529,000 |            |  | $ | 625,000 |  |  |       |        |  |            |   |         |  |  |   |           | 
|December 2003 |  |          |        |  |          |   |         |            |  |   |         |  |  |       | 73,299 |  |            | $ | 438,000 |  |  | $ | 1,900,000 | 
|April 2002    |  |          | 73,529 |  |          | $ | 415,000 |            |  | $ | 625,000 |  |  |       |        |  |            |   |         |  |  |   |           | 
|December 2002 |  |          |        |  |          |   |         |            |  |   |         |  |  |       | 73,299 |  |            | $ | 465,000 |  |  | $ | 1,900,000 | 





| |             
| | ------------
| | Common Stock











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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                   
| | ------------------
| | Stock Option Plans











72



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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                             |                      |                  |           |            |           |          |            |                |   |   |       |       | 
|---------------------------- | -------------------- | ---------------- | --------- | ---------- | --------- | -------- | ---------- | -------------- | - | - | ----- | ----- | 
|                             |                      |                  |           |            |           | Weighted |           
|                             |                      | Shares Available |           |            | Number of |          |            | Average        |  
|                             |                      | for Grant        |           |            | Options   |          |            | Exercise Price |  
|                             |                      |                  |           |            |           |          |            |                |  
|Balance at December 31, 2001 |                      |                  | 1,659,660 |            |           |          | 9,373,447  |                |   | $ | 16.88 |      
|                             | Authorized for grant |                  |           | 1,321,020  |           |          |            |                |   |   |       |       | 
|                             | Granted              |                  |           | (3,038,900 | )         |          |            | 3,038,900      |   |   |       | 6.05  | 
|                             | Exercised            |                  |           |           |           |          |            | (52,225        | ) |   |       | 9.85  | 
|                             | Cancelled            |                  |           | 2,703,901  |           |          |            | (2,703,901     | ) |   |       | 22.21 | 
|                             |                      |                  |           |            |           |          |            |                |  
|Balance at December 31, 2002 |                      |                  | 2,645,681 |            |           |          | 9,656,221  |                |   |   | 12.06 |      
|                             | Authorized for grant |                  |           | 1,506,501  |           |          |            |               |   |   |       |       | 
|                             | Granted              |                  |           | (1,893,950 | )         |          |            | 1,893,950      |   |   |       | 6.50  | 
|                             | Exercised            |                  |           |           |           |          |            | (114,734       | ) |   |       | 3.11  | 
|                             | Cancelled            |                  |           | 967,685    |           |          |            | (967,685       | ) |   |       | 11.59 | 
|                             | Shares granted       |                  |           | (33,500    | )         |          |            |               |   |   |       |      | 
|                             | Expired              |                  |           | (224,807   | )         |          |            |               |   |   |       |      | 
|                             |                      |                  |           |            |           |          |            |                |  
|Balance at December 31, 2003 |                      |                  | 2,967,610 |            |           |          | 10,467,752 |                |   |   | 11.19 |      
|                             | Authorized for grant |                  |           | 1,663,110  |           |          |            |               |   |   |       |       | 
|                             | Granted              |                  |           | (4,628,700 | )         |          |            | 4,628,700      |   |   |       | 4.19  | 
|                             | Exercised            |                  |           |           |           |          |            | (295,758       | ) |   |       | 2.49  | 
|                             | Cancelled            |                  |           | 2,008,849  |           |          |            | (2,008,849     | ) |   |       | 11.60 | 
|                             |                      |                  |           |            |           |          |            |                |  
|Balance at December 31, 2004 |                      |                  | 2,010,869 |            |           |          | 12,791,845 |                |   | $ | 8.80  |      
|                             |                      |                  |           |            |           |          |            |                |  



|                         |  |                     |            |  |                     |  |      |          |  |   |        |  |          |       |           |  |  |   |       | 
|------------------------ |  | ------------------- | ---------- |  | ------------------- |  | ---- | -------- |  | - | ------ |  | -------- | ----- | --------- |  |  | - | ----- | 
|                         |  | Options Outstanding |            |  | Options Exercisable | 
|                         |  |                     |            |  |                     | 
|                         |  | Number              |            |  | Weighted            |  |      | Weighted |  |   |        |  | Weighted |      
|                         |  | Outstanding on      |            |  | Average             |  |      | Average  |  |   |        |  | Average  |      
|                         |  | December 31,        |            |  | Remaining           |  |      | Exercise |  |   |        |  | Exercise |      
|Range of Exercise Prices |  | 2004                |            |  | Contractual Life    |  |      | Price    |  |   | Shares |  |          | Price |          
|                         |  |                     |            |  |                     |  |      |          |  |   |        |  |          |       |          
|$0.33  $0.99            |  |                     | 209,555    |  |                     |  | 2.28 |          |  | $ | 0.98   |  |          |       | 209,555   |  |  | $ | 0.98  | 
|$1.20  $3.95            |  |                     | 3,960,317  |  |                     |  | 9.94 |          |  |   | 3.95   |  |          |       | 6,317     |  |  |   | 1.75  | 
|$3.98  $6.04            |  |                     | 2,911,941  |  |                     |  | 7.99 |          |  |   | 5.75   |  |          |       | 1,563,330 |  |  |   | 5.73  | 
|$6.09  $13.45           |  |                     | 3,763,218  |  |                     |  | 6.37 |          |  |   | 10.48  |  |          |       | 3,302,072 |  |  |   | 10.88 | 
|$13.50  $71.53          |  |                     | 1,946,814  |  |                     |  | 5.41 |          |  |   | 20.81  |  |          |       | 1,823,620 |  |  |   | 21.04 | 
|                         |  |                     |            |  |                     |  |      |          |  |   |        |  |          |       |          
|$0.33  $71.53           |  |                     | 12,791,845 |  |                     |  | 7.63 |          |  |   | 8.80   |  |          |       | 6,904,894 |  |  |   | 12.09 | 
|                         |  |                     |            |  |                     |  |      |          |  |   |        |  |          |       |          







73



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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                             
| | ----------------------------
| | Employee Stock Purchase Plan









| |                      
| | ---------------------
| | Pro Forma Information



|                        |  |                |     |   |                |  |     |      |  |  |      |   |  |      |     |   |      |  |     |   |  |  |     |  
|----------------------- |  | -------------- | --- | - | -------------- |  | --- | ---- |  |  | ---- | - |  | ---- | --- | - | ---- |  | --- | - |  |  | --- | -
|                        |  | Employee Stock |     |   | Employee Stock | 
|                        |  | Option         |     |   | Purchase Plan  | 
|                        |  |                |     |   |                | 
|                        |  | 2004           |     |   | 2003           |  |     | 2002 |  |  | 2004 |   |  | 2003 |     |   | 2002 | 
|                        |  |                |     |   |                |  |     |      |  |  |      |   |  |      |     |   |      | 
|Expected life (years)   |  |                | 4   |   |                |  | 4   |      |  |  | 4    |   |  |      | 1   |   |      |  | 1   |   |  |  | 1   |  
|Expected volatility     |  |                | 90  | % |                |  | 90  | %    |  |  | 90   | % |  |      | 90  | % |      |  | 90  | % |  |  | 90  | %
|Risk-free interest rate |  |                | 3.6 | % |                |  | 4.0 | %    |  |  | 4.0  | % |  |      | 4.0 | % |      |  | 4.0 | % |  |  | 4.0 | %
|Expected dividend yield |  |                | 0.0 | % |                |  | 0.0 | %    |  |  | 0.0  | % |  |      | 0.0 | % |      |  | 0.0 | % |  |  | 0.0 | %

74



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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |               
| | --------------
| | Stock Warrants





| |                      
| | ---------------------
| | Common Stock Reserved



|                                  |       |  |            |            | 
|--------------------------------- | ----- |  | ---------- | ---------- | 
|Stock options outstanding         |       |  | 12,791,845 |           
|Warrants to purchase common stock |       |  | 2,794,263  |           
|Employee stock purchase plan      |       |  | 312,906    |           
|Stock options available for grant |       |  | 2,010,869  |           
|Conversion of preferred stock     |       |  | 2,936,577  |           
|                                  |       |  |           
|                                  | Total |  |            | 20,846,460 | 
|                                  |       |  |           



|   |             
|-- | ------------
|8. | Income Taxes





75



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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                          |                                                                              |              |         |          |      |   |         |          |  
|------------------------- | ---------------------------------------------------------------------------- | ------------ | ------- | -------- | ---- | - | ------- | -------- | -
|                          |                                                                              | December 31, |        
|                          |                                                                              |              |        
|                          |                                                                              | 2004         |         |          | 2003 |  
|                          |                                                                              |              |         |          |      |  
|Deferred tax assets:      |                                                                              |              |         |          |      |   |         |         
|                          | Net operating loss carryforwards                                             |              | $       | 197,767  |      |   | $       | 174,028  |  
|                          | Research and experimentation credit and foreign tax credit
    carryforwards |              |         | 24,813   |      |   |         | 22,951   |  
|                          | Deferred revenue                                                             |              |         | 5,283    |      |   |         | 5,082    |  
|                          | Financial statement expenses not deducted on tax return                      |              |         | 5,526    |      |   |         | 4,610    |  
|                          |                                                                              |              |         |          |      |  
|                          |                                                                              |              | 233,389 |          |      |   | 206,671 |         
|Deferred tax liabilities: |                                                                              |              |         |          |      |   |         |         
|                          | Tax return expenses not charged against financial statements                 |              |         | (419     | )    |   |         | (514     | )
|                          |                                                                              |              |         |          |      |  
|                          |                                                                              |              | (419    | )        |      |   | (514    | )       
|                          |                                                                              |              |         |          |      |  
|                          | Net deferred tax assets                                                      |              |         | 232,970  |      |   |         | 206,157  |  
|                          | Less valuation allowance                                                     |              |         | (232,970 | )    |   |         | (206,157 | )
|                          |                                                                              |              |         |          |      |  
|Net deferred tax assets   |                                                                              | $            |        |          |      | $ |        |         
|                          |                                                                              |              |         |          |      |  



|   |            
|-- | -----------
|9. | 401(k) Plan





|    |             
|--- | ------------
|10. | Other Income



| |            
| | -----------
| | Biogen Idec



76



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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                   
| | ------------------
| | Sale of Technology





|    |                                          
|--- | -----------------------------------------
|11. | Discontinued Operations and Restructuring



| |                                                   
| | --------------------------------------------------
| | Discontinued BEXXAR Therapeutic Regimen Operations







| |   |                                                                                                                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we will not continue any of the revenue-producing or
    cost-generating activities related to BEXXAR therapeutic regimen
    after the sale. The cash flows related to the development and
    sales milestones and royalties are indirect cash flows as they
    are not part of the operating activities related to BEXXAR
    therapeutic regimen; and.
|
| |  | we will have no involvement in BEXXAR therapeutic regimen
    operations and no ability to influence operating policies or
    decisions.                                                                                                                                                                                                                  



|                           |                                       |              |         |        |      |   |         |       | 
|-------------------------- | ------------------------------------- | ------------ | ------- | ------ | ---- | - | ------- | ----- | 
|                           |                                       | December 31, |        
|                           |                                       |              |        
|                           |                                       | 2004         |         |        | 2003 |  
|                           |                                       |              |         |        |      |  
|Revenue                    |                                       | $            | 13,306  |        |      | $ | 15,365  |      
|Expenses                   |                                       |              | (37,549 | )      |      |   | (18,044 | )    
|Loss on transfer of assets |                                       |              | (2,746  | )      |      |   |        |      
|                           |                                       |              |         |        |      |  
|                           | Net loss from discontinued operations |              | $       | 26,989 |      |   | $       | 2,679 | 
|                           |                                       |              |         |        |      |  

77



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CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |              
| | -------------
| | Restructuring







|    |                              
|--- | -----------------------------
|12. | Commitments and Contingencies





|    |                       
|--- | ----------------------
|13. | Geographic Information



|              |         |      |        |       |      |  |        |       |  |  |        |        | 
|------------- | ------- | ---- | ------ | ----- | ---- |  | ------ | ----- |  |  | ------ | ------ | 
|              |         | 2004 |        |       | 2003 |  |        | 2002  | 
|              |         |      |        |       |      |  |        |       | 
|North America |         |      | 10,594 |       |      |  | 18,815 |       |  |  | 18,940 |       
|Europe:       |         |      |        |       |      |  |        |       |  |  |        |       
|              | UK      |      |        | 4,068 |      |  |        | 6,010 |  |  |        | 12,958 | 
|              | Belgium |      |        | 5,185 |      |  |        | 3,148 |  |  |        | 3,616  | 
|              | Others  |      |        | 2,315 |      |  |        | 3,690 |  |  |        | 7,066  | 
|              |         |      |        |       |      |  |        |       | 
|              |         |      | 11,568 |       |      |  | 12,848 |       |  |  | 23,640 |       
|Asia          |         |      | 2,794  |       |      |  | 3,682  |       |  |  | 6,158  |       
|              |         |      |        |       |      |  |        |       | 
|Total         |         |      | 24,956 |       |      |  | 35,345 |       |  |  | 48,738 |       
|              |         |      |        |       |      |  |        |       | 



78



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##### Table of Contents



CORIXA CORPORATION


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                     
|--- | ------------------------------------
|14. | Quarterly Financial Data (Unaudited)





| |                          
| | -------------------------
| | Quarterly Financial Data:

|     |                                              |                                       |   |         |    |  |   |         |   |  |    |         |   |  |   |         |  
|---- | -------------------------------------------- | ------------------------------------- | - | ------- | -- |  | - | ------- | - |  | -- | ------- | - |  | - | ------- | -
|     |                                              | Q1                                    |   |         | Q2 |  |   | Q3      |   |  | Q4 |        
|     |                                              |                                       |   |         |    |  |   |         |   |  |    |        
|     |                                              | (In thousands, except per share data) |  
|2004 |                                              |                                       |   |         |    |  |   |         |   |  |    |         |   |  |   |        
|     | Revenue                                      |                                       | $ | 5,957   |    |  | $ | 4,522   |   |  | $  | 6,185   |   |  | $ | 8,292   |  
|     | Net loss from continuing operations          |                                       |   | (14,515 | )  |  |   | (3,682  | ) |  |    | (12,380 | ) |  |   | (18,841 | )
|     | Net loss from discontinued operations        |                                       |   | (6,396  | )  |  |   | (6,760  | ) |  |    | (8,000  | ) |  |   | (5,833  | )
|     | Net loss                                     |                                       |   | (20,911 | )  |  |   | (10,442 | ) |  |    | (20,380 | ) |  |   | (24,674 | )
|     | Basic and diluted net loss per common share: |                                       |   |         |    |  |   |         |   |  |    |         |   |  |   |         |  
|     | Continuing operations                        |                                       |   | (0.26   | )  |  |   | (0.07   | ) |  |    | (0.22   | ) |  |   | (0.32   | )
|     | Discontinued operations                      |                                       |   | (0.12   | )  |  |   | (0.12   | ) |  |    | (0.14   | ) |  |   | (0.10   | )
|     | Net loss                                     |                                       |   | (0.38   | )  |  |   | (0.19   | ) |  |    | (0.37   | ) |  |   | (0.42   | )
|2003 |                                              |                                       |   |         |    |  |   |         |   |  |    |         |   |  |   |        
|     | Revenue                                      |                                       | $ | 9,125   |    |  | $ | 7,559   |   |  | $  | 5,989   |   |  | $ | 12,472  |  
|     | Net loss from continuing operations          |                                       |   | (18,696 | )  |  |   | (32,873 | ) |  |    | (19,530 | ) |  |   | (10,141 | )
|     | Net gain (loss from discontinued operations) |                                       |   |        |    |  |   | 12,250  |   |  |    | (8,229  | ) |  |   | (6,700  | )
|     | Net loss                                     |                                       |   | (18,696 | )  |  |   | (20,623 | ) |  |    | (27,759 | ) |  |   | (16,841 | )
|     | Basic and diluted net loss per common share: |                                       |   |         |    |  |   |         |   |  |    |         |   |  |   |         |  
|     | Continuing operations                        |                                       |   | (0.37   | )  |  |   | (0.64   | ) |  |    | (0.36   | ) |  |   | (0.18   | )
|     | Discontinued operations                      |                                       |   |        |    |  |   | 0.24    |   |  |    | (0.15   | ) |  |   | (0.12   | )
|     | Net loss                                     |                                       |   | (0.37   | )  |  |   | (0.40   | ) |  |    | (0.51   | ) |  |   | (0.31   | )

79



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|        |                                                                           
|------- | --------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants and
    Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

Evaluation of disclosure controls and
procedures.


Managements report on internal control over
financial reporting. Internal
Control Intergrated Framework


Changes in internal controls.





PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant








|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation








|         |                                                                   
|-------- | ------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management








|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions



80



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##### Table of Contents








|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accounting Fees and Services






PART IV







|         |                                            
|-------- | -------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules.





| |                                                          
| | ---------------------------------------------------------
| | (a)(1) Reports of independent registered accounting firm.



| |  |                                                                                                    
| |  | ---------------------------------------------------------------------------------------------------
| |  | Consolidated Balance Sheets as of December 31, 2004 and
    2003.                                  
|
| |  | Consolidated Statements of Operations  Years Ended
    December 31, 2004, 2003 and 2002.          
|
| |  | Consolidated Statements of Stockholders Equity 
    Years Ended December 31, 2004, 2003 and 2002.
|
| |  | Consolidated Statements of Cash Flows  Years Ended
    December 31, 2004, 2003 and 2002.          
|
| |  | Notes to Consolidated Financial Statements.                                                        





| |  |                                                                                                                                                                  
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | All schedules are omitted because they are not applicable or the
    required information is shown in the consolidated financial
    statements or notes thereto.



| |                                                                                                 
| | ------------------------------------------------------------------------------------------------
| | (a)(3) Index to Exhibits filed in response to Item 601
    of Regulation S-K is set forth below.

EXHIBIT INDEX


|        |   |    |                     |                                                                                                                                                                            |      |     
|------- | - | -- | ------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---- | ----
|Exhibit |   |    |                     |                                                                                                                                                                            |     
|Number  |   |    | Exhibit Description |                                                                                                                                                                            | Page
|        |   |    |                     |                                                                                                                                                                            |     
|        | 3 | .1 |                     | Fifth Amended and Restated Certificate of Incorporation of Corixa                                                                                                          |      | (FF)
|        | 3 | .2 |                     | Certificate of Designation of Rights, Preferences and Privileges
    of Series A Preferred Stock                                                                           |      | (D) 
|        | 3 | .3 |                     | Certificate of Decrease of Shares Designated as Series A
    Preferred Stock                                                                                               |      | (T) 
|        | 3 | .4 |                     | Certificate of Designation of Rights, Preferences and Privileges
    of Series B Preferred Stock                                                                           |      | (E) 
|        | 3 | .5 |                     | Certificate of Amendment of Certificate of Incorporation                                                                                                                   |      | (DD)
|        | 3 | .6 |                     | Bylaws of Corixa Corporation                                                                                                                                               |      | (BB)
|        | 3 | .7 |                     | Amendment No. 1 to Bylaws                                                                                                                                                  |      | (KK)
|        | 3 | .8 |                     | Amendment No. 2 to Bylaws                                                                                                                                                  |      | (KK)
|        | 4 | .1 |                     | Indenture dated June 13, 2003 between Corixa Corporation
    and Wells Fargo Bank, National Association, as Trustee, for
    4.25% Convertible Subordinated Notes due 2008 |      | (U) 

| |    |                                                               |  |                                                                                                                                                                                                          |  |    
| | -- | ------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---
| |    | License, Development, Commercialization and Supply Agreements |  |                                                                                                                                                                                                         
| |    |                                                               |  |                                                                                                                                                                                                         
| | 10 | .1+                                                           |  | Multi-Field Vaccine Discovery Collaboration and License
    Agreement between Corixa Corporation and SmithKline Beecham plc,
    dated September 1, 1998                                                 |  | (C)
| | 10 | .2+                                                           |  | Amendment No. 1, dated May 25, 2000, to the
    Multi-Field Vaccine Discovery Collaboration and License
    Agreement between Corixa Corporation and SmithKline Beecham plc,
    dated September 1, 1998 |  | (H)

81



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|        |    |      |                                                               |                                                                                                                                                                                                                                                                               |      |     
|------- | -- | ---- | ------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---- | ----
|Exhibit |    |      |                                                               |                                                                                                                                                                                                                                                                               |     
|Number  |    |      | License, Development, Commercialization and Supply Agreements |                                                                                                                                                                                                                                                                               | Page
|        |    |      |                                                               |                                                                                                                                                                                                                                                                               |     
|        | 10 | .3+  |                                                               | Letter Agreement, dated August 16, 2001, between Corixa
    Corporation and SmithKline Beecham plc, amending the Multi-Field
    Vaccine Discovery Collaboration and License Agreement between
    Corixa Corporation and SmithKline Beecham plc, dated
    September 1, 1998 |      | (M) 
|        | 10 | .4+  |                                                               | Amendment No. 2, dated January 28, 2003, to the
    Multi-Field Vaccine Discovery Collaboration and License
    Agreement between Corixa Corporation and SmithKline Beecham plc,
    dated September 1, 1998                                                                  |      | (S) 
|        | 10 | .5+  |                                                               | Collaboration and License Agreement dated January 28, 2003
    between Corixa Corporation and SmithKline Beecham plc                                                                                                                                                          |      | (S) 
|        | 10 | .6+  |                                                               | Corixa License Agreement dated January 28, 2003 between
    Corixa Corporation and SmithKline Beecham plc                                                                                                                                                                     |      | (S) 
|        | 10 | .7+  |                                                               | Collaboration Agreement dated May 21, 1999 between Corixa
    Corporation Inpharzam International                                                                                                                                                                             |      | (L) 
|        | 10 | .8+  |                                                               | Letter Agreement dated November 19, 2001 between Corixa
    Corporation and Inpharzam International, amending the
    Collaboration Agreement dated May 21, 1999 between Corixa
    Corporation Inpharzam International                                                       |      | (S) 
|        | 10 | .9+  |                                                               | Letter Agreement dated November 15, 2002 between Corixa
    Corporation and Inpharzam International, amending the
    Collaboration Agreement dated May 21, 1999 between Corixa
    Corporation Inpharzam International                                                       |      | (S) 
|        | 10 | .10+ |                                                               | Amended and Restated License and Collaborative Research
    Agreement dated as of December 19, 2002 between Corixa
    Corporation and Japan Tobacco Inc.                                                                                                                     |      | (S) 
|        | 10 | .11+ |                                                               | Development and License Agreement dated August 16, 1999
    between Zenyaku Kogyo Co., Ltd. and Corixa Corporation                                                                                                                                                            |      | (M) 
|        | 10 | .12+ |                                                               | Letter Agreement between Corixa Corporation and Zenyaku Kogyo
    Co., Ltd. dated August 6, 2001 amending the Development and
    License Agreement dated August 16, 1999 between Zenyaku
    Kogyo Co., Ltd. and Corixa Corporation                                          |      | (M) 
|        | 10 | .13+ |                                                               | License, Development and Commercialization Agreement dated
    November 27, 2002 between Corixa Corporation and Kirin
    Brewery Company, Ltd.                                                                                                                               |      | (P) 
|        | 10 | .14+ |                                                               | License and Supply Agreement dated May 27, 2003 among
    Corixa Corporation, Coulter Pharmaceutical, Inc. and
    GlaxoSmithKline Inc.                                                                                                                                       |      | (V) 
|        | 10 | .15+ |                                                               | Settlement Agreement and License between Biogen Idec Inc.,
    Corixa Corporation, Coulter Pharmaceutical, Inc., The Regents of
    the University of Michigan and SmithKline Beecham Corporation
    d/b/a GlaxoSmithKline, dated February 27, 2004                          |      | (HH)
|        | 10 | .16+ |                                                               | Letter Amendment to MPL Agreements between Corixa Corporation
    and SmithKline Beecham d/b/a GlaxoSmithKline, dated
    July 20, 2004                                                                                                                                       |      | (II)
|        | 10 | .17* |                                                               | Asset Purchase Agreement among Corixa Corporation, Coulter
    Pharmaceutical, Inc. and SmithKline Beecham d/b/a
    GlaxoSmithKline, dated December 12, 2004                                                                                                                 |      |    
|        | 10 | .18  |                                                               | First Amendment, dated December 31, 2004, to the Asset
    Purchase Agreement between Corixa Corporation, Coulter
    Pharmaceutical, Inc. and SmithKline Beecham d/b/a
    GlaxoSmithKline, dated December 12, 2004                                                          |      |    
|        | 10 | .19  |                                                               | Second Amendment, dated February 2, 2005, to the Asset
    Purchase Agreement between Corixa Corporation, Coulter
    Pharmaceutical, Inc. and SmithKline Beecham d/b/a
    GlaxoSmithKline, dated December 12, 2004                                                          |      |    

| |    |                                       |  |                                                                                                                                                                                              |  |    
| | -- | ------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---
| |    | Debt and Equity Investment Agreements |  |                                                                                                                                                                                             
| |    |                                       |  |                                                                                                                                                                                             
| | 10 | .20+                                  |  | Equity Line of Credit and Securities Purchase Agreement between
    Corixa Corporation and Castle Gate, L.L.C., dated April 8,
    1999                                                      |  | (D)
| | 10 | .21+                                  |  | Amendment No. 1, dated December 21, 2000, to the
    Equity Line of Credit and Securities Purchase Agreement between
    Corixa Corporation and Castle Gate, L.L.C., dated April 8,
    1999 |  | (E)

82



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|        |    |      |                                       |                                                                                                                                                                                                                                   |      |     
|------- | -- | ---- | ------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---- | ----
|Exhibit |    |      |                                       |                                                                                                                                                                                                                                   |     
|Number  |    |      | Debt and Equity Investment Agreements |                                                                                                                                                                                                                                   | Page
|        |    |      |                                       |                                                                                                                                                                                                                                   |     
|        | 10 | .22+ |                                       | Amendment No. 2, dated December 29, 2000, to the
    Equity Line of Credit and Securities Purchase Agreement between
    Corixa Corporation and Castle Gate, L.L.C., dated April 8,
    1999                                      |      | (E) 
|        | 10 | .23+ |                                       | Registration Rights Agreement between Corixa Corporation and
    Castle Gate, L.L.C., dated April 8, 1999                                                                                                                         |      | (D) 
|        | 10 | .24+ |                                       | Standstill Agreement between Corixa Corporation and Castle Gate,
    L.L.C., dated April 8, 1999                                                                                                                                  |      | (D) 
|        | 10 | .25+ |                                       | Warrant Number CG-1 issued by Corixa Corporation to Castle Gate,
    L.L.C. on April 8, 1999                                                                                                                                      |      | (D) 
|        | 10 | .26+ |                                       | Warrant Number CG-2 issued by Corixa Corporation to Castle Gate,
    L.L.C. on April 8, 1999                                                                                                                                      |      | (D) 
|        | 10 | .27+ |                                       | Form of Warrant Number CG-3 to be issued by Corixa Corporation
    to Castle Gate, L.L.C. on the occurrence of certain events in
    accordance with the terms of the Equity Line of Credit and
    Securities Purchase Agreement |      | (D) 
|        | 10 | .28+ |                                       | Form of Warrant Number CG-4 to be issued by Corixa Corporation
    to Castle Gate, L.L.C. on the occurrence of certain events in
    accordance with the terms of the Equity Line of Credit and
    Securities Purchase Agreement |      | (D) 
|        | 10 | .29+ |                                       | Warrant Number CG-5 issued by Corixa Corporation to Castle Gate,
    L.L.C. on December 29, 2000                                                                                                                                  |      | (E) 
|        | 10 | .30+ |                                       | Loan Agreement between Coulter Pharmaceutical, Inc. and
    SmithKline Beecham Corporation, dated October 23, 1998                                                                                                                |      | (G) 
|        | 10 | .31  |                                       | First Amendment dated June 28, 2002 to the Loan Agreement
    between Coulter Pharmaceutical, Inc. and SmithKline Beecham
    Corporation, dated October 23, 1998                                                                 |      | (Q) 
|        | 10 | .32  |                                       | Second Amendment, dated August 26, 2003, to the Loan
    Agreement between Coulter Pharmaceutical, Inc. and SmithKline
    Beecham Corporation, dated October 23, 1998                                                            |      | (W) 
|        | 10 | .33+ |                                       | Security Agreement between Coulter Pharmaceutical, Inc. and
    SmithKline Beecham Corporation, dated October 23, 1998                                                                                                            |      | (G) 
|        | 10 | .34+ |                                       | Grant of Security Interest between Coulter Pharmaceutical, Inc.
    and SmithKline Beecham Corporation, dated October 23, 1998                                                                                                    |      | (G) 
|        | 10 | .35  |                                       | Registration Rights Agreement dated August 26, 2003 between
    Corixa Corporation and SmithKline Beecham Corporation                                                                                                             |      | (W) 
|        | 10 | .36  |                                       | Form of Warrant issued by Corixa Corporation to employees of
    Shoreline Pacific, LLC on December 3, 2001                                                                                                                       |      | (K) 
|        | 10 | .37  |                                       | Loan Agreement between Corixa Corporation and BNP Paribas, dated
    August 3, 2001                                                                                                                                               |      | (N) 
|        | 10 | .38  |                                       | Master Security Agreement between Corixa Corporation and General
    Electric Capital Corporation dated February 25, 2002                                                                                                         |      | (GG)
|        | 10 | .39  |                                       | Promissory Note dated December 31, 2003 in the principal
    amount of $7,000,000, by Corixa Corporation in favor of General
    Electric Capital Corporation                                                                     |      | (FF)
|        | 10 | .40  |                                       | Securities Deposit Pledge Agreement dated December 31, 2004
    by Corixa Corporation in favor of General Electric Capital
    Corporation                                                                                        |      | (FF)
|        | 10 | .41  |                                       | Securities Purchase Agreement dated August 9, 2002 among
    Corixa Corporation and the purchasers named therein                                                                                                                  |      | (Z) 
|        | 10 | .42  |                                       | Registration Rights Agreement dated August 9, 2002 among
    Corixa Corporation and the investors named therein                                                                                                                   |      | (Z) 
|        | 10 | .43  |                                       | Registration Rights Agreement dated June 13, 2003 for
    4.25% Convertible Subordinated Notes due July 1, 2008                                                                                                                   |      | (U) 
|        | 10 | .44+ |                                       | Credit Agreement between Corixa Corporation and NDC New Markets
    Investments IV, L.P., dated March 2, 2004                                                                                                                     |      | (JJ)

83



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|        |    |     |                                       |                                                                                                                                                                     |      |     
|------- | -- | --- | ------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---- | ----
|Exhibit |    |     |                                       |                                                                                                                                                                     |     
|Number  |    |     | Debt and Equity Investment Agreements |                                                                                                                                                                     | Page
|        |    |     |                                       |                                                                                                                                                                     |     
|        | 10 | .45 |                                       | Promissory Note dated March 2, 2004 in the principle amount
    of $14,550,000, by NDC New Markets Investments IV, L.P. in favor
    of Corixa Corporation          |      | (JJ)
|        | 10 | .46 |                                       | Security Agreement between Corixa Corporation and NDC New
    Markets Investment IV, L.P., dated March 2, 2004                                                      |      | (JJ)
|        | 10 | .47 |                                       | First Amendment, dated February 28, 2005, to the Security
    Agreement between Corixa Corporation and NDC New Markets
    Investment IV, L.P., dated March 2, 2004 |      |    

| |    |                        |  |                                                                                                                                                                                                                        |  |     
| | -- | ---------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
| |    | Real Estate Agreements |  |                                                                                                                                                                                                                       
| |    |                        |  |                                                                                                                                                                                                                       
| | 10 | .48                    |  | Columbia Building Lease dated October 28, 1994 and Columbia
    Building Lease First Amendment dated December 29, 1995,
    each between Corixa Corporation and Fred Hutchinson Cancer
    Research Center             |  | (A) 
| | 10 | .49                    |  | Second Amendment to Columbia Building Lease dated
    September 25, 1998 between Corixa Corporation and
    Alexandria Real Estate Equities, Inc., successor in interest to
    Fred Hutchinson Cancer Research Center |  | (B) 
| | 10 | .50                    |  | Lease dated May 31, 1996 between Corixa Corporation and
    Health Science Properties, Inc.                                                                                                                            |  | (A) 
| | 10 | .51                    |  | First Amendment to Lease dated January 31, 1997 between
    Corixa Corporation and Health Science Properties, Inc.                                                                                                     |  | (N) 
| | 10 | .52                    |  | Second Amendment to Lease dated June 30, 1997 between
    Corixa Corporation and Alexandria Real Estate Equities, Inc.,
    formerly known as Health Science Properties, Inc.                                          |  | (N) 
| | 10 | .53                    |  | Third Amendment to Lease dated November 1, 1998 between
    Corixa Corporation and Alexandria Real Estate Equities, Inc.,
    formerly known as Health Science Properties, Inc.                                        |  | (N) 
| | 10 | .55+                   |  | Lease dated November 7, 1997 between HMS Gateway Office
    L.P. and Coulter Pharmaceutical, Inc.                                                                                                                      |  | (AA)
| | 10 | .55+                   |  | First Amendment to Lease dated November 10, 1998 between
    HMS Gateway Office L.P. and Coulter Pharmaceutical, Inc.                                                                                                  |  | (G) 
| | 10 | .56                    |  | Second Amendment to Lease dated May 19, 2000 between HMS
    Gateway Office L.P. and Coulter Pharmaceutical, Inc.                                                                                                      |  | (N) 
| | 10 | .57+                   |  | Lease dated May 19, 2000 between HMS Gateway Office L.P.
    and Coulter Pharmaceutical, Inc.                                                                                                                          |  | (M) 
| | 10 | .58+                   |  | First Amendment to Lease dated January 15, 2002 between
    Gateway Boulevard Associates II, LLC, as successor interest
    to HMS Gateway Office L.P. and Coulter Pharmaceutical, Inc.                                |  | (S) 
| | 10 | .59+                   |  | Lease Agreement dated October 15, 2002 between Corixa
    Corporation and Lifesciences Building, LLC                                                                                                                   |  | (O) 
| | 10 | .60+                   |  | Sublease Agreement dated April 4, 2003 between Coulter
    Pharmaceutical, Inc. and Gryphon Therapeutics, Inc.                                                                                                         |  | (CC)
| | 10 | .61+                   |  | Sublease Agreement dated May 15, 2003 between Coulter
    Pharmaceutical, Inc. and Corgentech, Inc.                                                                                                                    |  | (CC)
| | 10 | .62                    |  | Sublease Agreement dated September 11, 2003 between Coulter
    Pharmaceutical, Inc. and Axys Pharmaceuticals, Inc.                                                                                                    |  | (X) 
| | 10 | .63                    |  | First Amendment dated September 29, 2003 to Sublease
    Agreement dated September 11, 2003 between Coulter
    Pharmaceutical, Inc. and Axys Pharmaceuticals, Inc.                                                    |  | (Y) 
| | 10 | .64                    |  | Standard Form of Agreement Between Owner and Contractor dated
    December 22, 2003 between Corixa Corporation and BN
    Builders, Inc.                                                                               |  | (FF)

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| |    |                                    |  |                                                                |  |     
| | -- | ---------------------------------- |  | -------------------------------------------------------------- |  | ----
| |    | Stock, Option and Retirement Plans |  |                                                               
| |    |                                    |  |                                                               
| | 10 | .65                                |  | 2001 Stock Incentive Plan                                      |  | (I) 
| | 10 | .66                                |  | 1997 Directors Stock Option Plan                              |  | (A) 
| | 10 | .67                                |  | 2001 Employee Stock Purchase Plan                              |  | (J) 
| | 10 | .68                                |  | Corixa Corporation 401(k) Savings & Retirement Plan            |  | (LL)
| | 10 | .69                                |  | Coulter Pharmaceutical, Inc. 1996 Employee Stock Purchase Plan |  | (F) 
| | 10 | .70                                |  | Coulter Pharmaceutical, Inc. 1995 Equity Incentive Plan        |  | (F) 
| | 10 | .71                                |  | Coulter Pharmaceutical, Inc. 1996 Equity Incentive Plan        |  | (F) 

| |    |                                        |  |                                                                                                                                                                                                                                    |  |     
| | -- | -------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
| |    | Agreements with Officers and Directors |  |                                                                                                                                                                                                                                   
| |    |                                        |  |                                                                                                                                                                                                                                   
| | 10 | .72                                    |  | Form of Indemnification Agreement between Corixa Corporation and
    each director and officer of Corixa Corporation                                                                                                               |  | (LL)
| | 10 | .73                                    |  | Form of Corixa Corporation Executive Employment Agreement                                                                                                                                                                          |  | (FF)
| | 10 | .74                                    |  | Amendment to Form of Corixa Corporation Executive Employment
    Agreement                                                                                                                                                         |  | (KK)
| | 10 | .75                                    |  | Amendment to Form of Corixa Corporation Executive Employment
    Agreement entered into between Corixa Corporation and each of
    Michelle Burris, David Fanning, Steven Gillis, Ph.D. and
    Kathleen McKereghan Deeley         |  | (MM)
| | 10 | .76                                    |  | Schedule of officers party to Corixa Corporation Executive
    Employment Agreement                                                                                                                                                |  |    
| | 21 | .1                                     |  | Subsidiaries of Corixa Corporation                                                                                                                                                                                                 |  |    
| | 23 | .1                                     |  | Consent of independent registered accounting firm                                                                                                                                                                                  |  |    
| | 24 | .1                                     |  | Power of Attorney (included on signature page)                                                                                                                                                                                     |  |     
| | 31 | .1                                     |  | Certification of Chief Executive Officer of Corixa Corporation
    required by Rule 13a-14(a) or Rule 15d-14(a) of the
    Securities Exchange Act of 1934, as amended                                                             |  |    
| | 31 | .2                                     |  | Certification of Chief Financial Officer of Corixa Corporation
    required by Rule 13a-14(a) or Rule 15d-14(a) of the
    Securities Exchange Act of 1934, as amended                                                             |  |    
| | 32 | .1                                     |  | Certification of Chief Executive Officer and Chief Financial
    Officer of Corixa Corporation required by Rule 13a-14(b) or
    Rule 15d-14(b) of the Securities Exchange Act of 1934, as
    amended, and 18 U.S.C. Section 1350 |  |    






|    |  |                                                                                                                                                              
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------
|(A) |  | Incorporated herein by reference Corixas Form S-1/A
    (File No. 333-32147), filed with the Commission on
    July 25, 1997.                               
|   
|(B) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 0-22891), filed with the Commission on
    November 12, 1998.                           
|   
|(C) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    November 10, 1998.                            
|   
|(D) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    April 23, 1999.                               
|   
|(E) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    January 4, 2001.                              
|   
|(F) |  | Incorporated herein by reference to Corixas Registration
    Statement on Form S-8 (File No. 333-52968), filed with
    the Commission on December 29, 2000.
|   
|(G) |  | Incorporated herein by reference to Coulter Pharmaceutical,
    Inc.s Form 10-K, (File No. 000-21905), filed
    with the Commission on March 30, 1999.     
|   
|(H) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 000-22891), filed with the Commission on
    November 6, 2000.                          
|   
|(I) |  | Incorporated herein by reference to Corixas Registration
    Statement on Form S-8 (File No. 333-65394), filed with
    the Commission on July 19, 2001.    

85



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##### Table of Contents





|     |  |                                                                                                                                                       
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------
|(J)  |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 000-22891), filed with the Commission on
    August 10, 2001.                    
|    
|(K)  |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 000-22891), filed with the Commission on
    December 17, 2001.                   
|    
|(L)  |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 000-22891), filed with the Commission on
    August 9, 1999.                     
|    
|(M)  |  | Incorporated herein by reference to Corixas
    Form 10-K/A (File No. 000-22891), filed with the
    Commission on June 24, 2002.                    
|    
|(N)  |  | Incorporated herein by reference to Corixas Form 10-K
    (File No. 000-22891), filed with the Commission on
    March 1, 2002.                      
|    
|(O)  |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 000-22891), filed with the Commission on
    October 21, 2002.                    
|    
|(P)  |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 000-22891), filed with the Commission on
    December 5, 2002.                    
|    
|(Q)  |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 000-22891), filed with the Commission on
    August 13, 2002.                    
|    
|(R)  |  | Incorporated herein by reference to Corixas
    Form 8-K/A (File No. 000-22891), filed with the
    Commission on May 29, 2002.                      
|    
|(S)  |  | Incorporated herein by reference to Corixas Form 10-K
    (File No. 000-22891), filed with the Commission on
    February 25, 2003.                  
|    
|(T)  |  | Incorporated herein by reference to Corixas Amendment to
    Registration Statement on Form 8-A/ A, filed with the
    Commission on March 6, 2003.  
|    
|(U)  |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    June 18, 2003                          
|    
|(V)  |  | Incorporated herein by reference to Corixas
    Form 8-K/A (File No. 000-22891), filed with the
    Commission on July 29, 2003.                     
|    
|(W)  |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    September 9, 2003                      
|    
|(X)  |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    September 11, 2003                     
|    
|(Y)  |  | Incorporated herein by reference to Corixas
    Form 8-K/A (File No. 0-22891), filed with the
    Commission on September 29, 2003                   
|    
|(Z)  |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    August 13, 2002                        
|    
|(AA) |  | Incorporated herein by reference to Coulter Pharmaceutical,
    Inc.s Form 10-K (File No. 000-21905), filed with
    the commission on March 27, 1998
|    
|(BB) |  | Incorporated herein by reference to Corixas Form 10-K
    (File No. 000-22891), filed with the Commission on
    March 30, 2001                      
|    
|(CC) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    June 9, 2003                           
|    
|(DD) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 0-22891), filed with the Commission on
    August 14, 2000                       
|    
|(EE) |  | Incorporated herein by reference to the Power of
    Attorney granted below in this report on Form 10-K.                                            
|    
|(FF) |  | Incorporated herein by reference to Corixas Form 10-K
    (File No. 0-22891), filed with the Commission on
    March 9, 2004                         
|    
|(GG) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 0-22891), filed with the Commission on
    May 15, 2002                          
|    
|(HH) |  | Incorporated herein by reference to Corixas
    Form 10-QA (File No. 0-22891), filed with the
    Commission on December 13, 2004                    

86



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##### Table of Contents





|     |  |                                                                                                                                       
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------
|(II) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    September 24, 2004     
|    
|(JJ) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 0-22891), filed with the Commission on
    May 6, 2004           
|    
|(KK) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 0-22891), filed with the Commission on
    November 9, 2004      
|    
|(LL) |  | Incorporated herein by reference to Corixas Form S-1/
    A (File No. 333-32147), filed with the Commission on
    September 19, 1997
|    
|(MM) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    January 6, 2005        
|    
|+    |  | Confidential treatment granted by order of the SEC.                                                                                   
|    
|*    |  | Confidential treatment sought by Corixa Corporation from the SEC.                                                                     
|    
|    |  | Filed herewith.                                                                                                                       

87



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##### Table of Contents






SIGNATURES






| |                   
| | ------------------
| | CORIXA CORPORATION



| |     |                    
| | --- | -------------------
| | By: | /s/ MICHELLE BURRIS

| |                                                  
| | -------------------------------------------------
| |                                                  
| | Michelle Burris                                  
| | Senior Vice President and Chief Financial Officer



POWER OF ATTORNEY




88



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##### Table of Contents





|                                       |  |                                                                                                    |  |                |  | 
|-------------------------------------- |  | -------------------------------------------------------------------------------------------------- |  | -------------- |  | 
|Signature                              |  | Title                                                                                              |  | Date          
|                                       |  |                                                                                                    |  |               
|                                      
|/s/ STEVEN GILLISSteven
    Gillis     |  | Chairman and Chief Executive Officer (Principal Executive
    Officer)                             |  | March 15, 2005
|                                      
|/s/ MICHELLE BURRISMichelle
    Burris |  | Senior Vice President and Chief Financial Officer (Principal
    Financial and Accounting Officer) |  | March 15, 2005
|                                      
|/s/ RON HUNTRon
    Hunt               |  | Director                                                                                           |  | March 16, 2005
|                                      
|/s/ GREGORY SESSLERGregory
    Sessler |  | Director                                                                                           |  | March 16, 2005
|                                      
|/s/ ARNOLD ORONSKYArnold
    Oronsky   |  | Director                                                                                           |  | March 16, 2005
|                                      
|/s/ JAMES YOUNGJames
    Young         |  | Director                                                                                           |  | March 16, 2005
|                                      
|/s/ ROBERT MOMSENRobert
    Momsen     |  | Director                                                                                           |  | March 16, 2005
|                                      
|/s/ SAMUEL R. SAKSSamuel
    R. Saks   |  | Director                                                                                           |  | March 16, 2005

89



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##### Table of Contents



EXHIBIT INDEX


|        |  |                                                                                                                                                                            |  |     
|------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Exhibit |  |                                                                                                                                                                            |  |     
|Number  |  | Exhibit Description                                                                                                                                                        |  | Page
|        |  |                                                                                                                                                                            |  |     
|3.1     |  | Fifth Amended and Restated Certificate of Incorporation of Corixa                                                                                                          |  | (FF)
|3.2     |  | Certificate of Designation of Rights, Preferences and Privileges
    of Series A Preferred Stock                                                                           |  | (D) 
|3.3     |  | Certificate of Decrease of Shares Designated as Series A
    Preferred Stock                                                                                               |  | (T) 
|3.4     |  | Certificate of Designation of Rights, Preferences and Privileges
    of Series B Preferred Stock                                                                           |  | (E) 
|3.5     |  | Certificate of Amendment of Certificate of Incorporation                                                                                                                   |  | (DD)
|3.6     |  | Bylaws of Corixa Corporation                                                                                                                                               |  | (BB)
|3.7     |  | Amendment No. 1 to Bylaws                                                                                                                                                  |  | (KK)
|3.8     |  | Amendment No. 2 to Bylaws                                                                                                                                                  |  | (KK)
|4.1     |  | Indenture dated June 13, 2003 between Corixa Corporation
    and Wells Fargo Bank, National Association, as Trustee, for
    4.25% Convertible Subordinated Notes due 2008 |  | (U) 

|       |  |                                                                                                                                                                                                                                                                               |  |    
|------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---
|       |  | License, Development, Commercialization and Supply Agreements                                                                                                                                                                                                                 |  |    
|       |  |                                                                                                                                                                                                                                                                               |  |    
|10.1+  |  | Multi-Field Vaccine Discovery Collaboration and License
    Agreement between Corixa Corporation and SmithKline Beecham plc,
    dated September 1, 1998                                                                                                                      |  | (C)
|10.2+  |  | Amendment No. 1, dated May 25, 2000, to the
    Multi-Field Vaccine Discovery Collaboration and License
    Agreement between Corixa Corporation and SmithKline Beecham plc,
    dated September 1, 1998                                                                      |  | (H)
|10.3+  |  | Letter Agreement, dated August 16, 2001, between Corixa
    Corporation and SmithKline Beecham plc, amending the Multi-Field
    Vaccine Discovery Collaboration and License Agreement between
    Corixa Corporation and SmithKline Beecham plc, dated
    September 1, 1998 |  | (M)
|10.4+  |  | Amendment No. 2, dated January 28, 2003, to the
    Multi-Field Vaccine Discovery Collaboration and License
    Agreement between Corixa Corporation and SmithKline Beecham plc,
    dated September 1, 1998                                                                  |  | (S)
|10.5+  |  | Collaboration and License Agreement dated January 28, 2003
    between Corixa Corporation and SmithKline Beecham plc                                                                                                                                                          |  | (S)
|10.6+  |  | Corixa License Agreement dated January 28, 2003 between
    Corixa Corporation and SmithKline Beecham plc                                                                                                                                                                     |  | (S)
|10.7+  |  | Collaboration Agreement dated May 21, 1999 between Corixa
    Corporation Inpharzam International                                                                                                                                                                             |  | (L)
|10.8+  |  | Letter Agreement dated November 19, 2001 between Corixa
    Corporation and Inpharzam International, amending the
    Collaboration Agreement dated May 21, 1999 between Corixa
    Corporation Inpharzam International                                                       |  | (S)
|10.9+  |  | Letter Agreement dated November 15, 2002 between Corixa
    Corporation and Inpharzam International, amending the
    Collaboration Agreement dated May 21, 1999 between Corixa
    Corporation Inpharzam International                                                       |  | (S)
|10.10+ |  | Amended and Restated License and Collaborative Research
    Agreement dated as of December 19, 2002 between Corixa
    Corporation and Japan Tobacco Inc.                                                                                                                     |  | (S)
|10.11+ |  | Development and License Agreement dated August 16, 1999
    between Zenyaku Kogyo Co., Ltd. and Corixa Corporation                                                                                                                                                            |  | (M)
|10.12+ |  | Letter Agreement between Corixa Corporation and Zenyaku Kogyo
    Co., Ltd. dated August 6, 2001 amending the Development and
    License Agreement dated August 16, 1999 between Zenyaku
    Kogyo Co., Ltd. and Corixa Corporation                                          |  | (M)
|10.13+ |  | License, Development and Commercialization Agreement dated
    November 27, 2002 between Corixa Corporation and Kirin
    Brewery Company, Ltd.                                                                                                                               |  | (P)
|10.14+ |  | License and Supply Agreement dated May 27, 2003 among
    Corixa Corporation, Coulter Pharmaceutical, Inc. and
    GlaxoSmithKline Inc.                                                                                                                                       |  | (V)



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##### Table of Contents



|        |  |                                                                                                                                                                                                                                                      |  |     
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Exhibit |  |                                                                                                                                                                                                                                                      |  |     
|Number  |  | License, Development, Commercialization and Supply Agreements                                                                                                                                                                                        |  | Page
|        |  |                                                                                                                                                                                                                                                      |  |     
|10.15+  |  | Settlement Agreement and License between Biogen Idec Inc.,
    Corixa Corporation, Coulter Pharmaceutical, Inc., The Regents of
    the University of Michigan and SmithKline Beecham Corporation
    d/b/a GlaxoSmithKline, dated February 27, 2004 |  | (HH)
|10.16+  |  | Letter Amendment to MPL Agreements between Corixa Corporation
    and SmithKline Beecham d/b/a GlaxoSmithKline, dated
    July 20, 2004                                                                                                              |  | (II)
|10.17*  |  | Asset Purchase Agreement among Corixa Corporation, Coulter
    Pharmaceutical, Inc. and SmithKline Beecham d/b/a
    GlaxoSmithKline, dated December 12, 2004                                                                                        |  |    
|10.18   |  | First Amendment, dated December 31, 2004, to the Asset
    Purchase Agreement between Corixa Corporation, Coulter
    Pharmaceutical, Inc. and SmithKline Beecham d/b/a
    GlaxoSmithKline, dated December 12, 2004                                 |  |    
|10.19   |  | Second Amendment, dated February 2, 2005, to the Asset
    Purchase Agreement between Corixa Corporation, Coulter
    Pharmaceutical, Inc. and SmithKline Beecham d/b/a
    GlaxoSmithKline, dated December 12, 2004                                 |  |    

|       |  |                                                                                                                                                                                                                                   |  |    
|------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---
|       |  | Debt and Equity Investment Agreements                                                                                                                                                                                             |  |    
|       |  |                                                                                                                                                                                                                                   |  |    
|10.20+ |  | Equity Line of Credit and Securities Purchase Agreement between
    Corixa Corporation and Castle Gate, L.L.C., dated April 8,
    1999                                                                                           |  | (D)
|10.21+ |  | Amendment No. 1, dated December 21, 2000, to the
    Equity Line of Credit and Securities Purchase Agreement between
    Corixa Corporation and Castle Gate, L.L.C., dated April 8,
    1999                                      |  | (E)
|10.22+ |  | Amendment No. 2, dated December 29, 2000, to the
    Equity Line of Credit and Securities Purchase Agreement between
    Corixa Corporation and Castle Gate, L.L.C., dated April 8,
    1999                                      |  | (E)
|10.23+ |  | Registration Rights Agreement between Corixa Corporation and
    Castle Gate, L.L.C., dated April 8, 1999                                                                                                                         |  | (D)
|10.24+ |  | Standstill Agreement between Corixa Corporation and Castle Gate,
    L.L.C., dated April 8, 1999                                                                                                                                  |  | (D)
|10.25+ |  | Warrant Number CG-1 issued by Corixa Corporation to Castle Gate,
    L.L.C. on April 8, 1999                                                                                                                                      |  | (D)
|10.26+ |  | Warrant Number CG-2 issued by Corixa Corporation to Castle Gate,
    L.L.C. on April 8, 1999                                                                                                                                      |  | (D)
|10.27+ |  | Form of Warrant Number CG-3 to be issued by Corixa Corporation
    to Castle Gate, L.L.C. on the occurrence of certain events in
    accordance with the terms of the Equity Line of Credit and
    Securities Purchase Agreement |  | (D)
|10.28+ |  | Form of Warrant Number CG-4 to be issued by Corixa Corporation
    to Castle Gate, L.L.C. on the occurrence of certain events in
    accordance with the terms of the Equity Line of Credit and
    Securities Purchase Agreement |  | (D)
|10.29+ |  | Warrant Number CG-5 issued by Corixa Corporation to Castle Gate,
    L.L.C. on December 29, 2000                                                                                                                                  |  | (E)
|10.30+ |  | Loan Agreement between Coulter Pharmaceutical, Inc. and
    SmithKline Beecham Corporation, dated October 23, 1998                                                                                                                |  | (G)
|10.31  |  | First Amendment dated June 28, 2002 to the Loan Agreement
    between Coulter Pharmaceutical, Inc. and SmithKline Beecham
    Corporation, dated October 23, 1998                                                                 |  | (Q)
|10.32  |  | Second Amendment, dated August 26, 2003, to the Loan
    Agreement between Coulter Pharmaceutical, Inc. and SmithKline
    Beecham Corporation, dated October 23, 1998                                                            |  | (W)
|10.33+ |  | Security Agreement between Coulter Pharmaceutical, Inc. and
    SmithKline Beecham Corporation, dated October 23, 1998                                                                                                            |  | (G)
|10.34+ |  | Grant of Security Interest between Coulter Pharmaceutical, Inc.
    and SmithKline Beecham Corporation, dated October 23, 1998                                                                                                    |  | (G)
|10.35  |  | Registration Rights Agreement dated August 26, 2003 between
    Corixa Corporation and SmithKline Beecham Corporation                                                                                                             |  | (W)



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##### Table of Contents



|        |  |                                                                                                                                                                                                                        |  |     
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Exhibit |  |                                                                                                                                                                                                                        |  |     
|Number  |  | Debt and Equity Investment Agreements                                                                                                                                                                                  |  | Page
|        |  |                                                                                                                                                                                                                        |  |     
|10.36   |  | Form of Warrant issued by Corixa Corporation to employees of
    Shoreline Pacific, LLC on December 3, 2001                                                                                                            |  | (K) 
|10.37   |  | Loan Agreement between Corixa Corporation and BNP Paribas, dated
    August 3, 2001                                                                                                                                    |  | (N) 
|10.38   |  | Master Security Agreement between Corixa Corporation and General
    Electric Capital Corporation dated February 25, 2002                                                                                              |  | (GG)
|10.39   |  | Promissory Note dated December 31, 2003 in the principal
    amount of $7,000,000, by Corixa Corporation in favor of General
    Electric Capital Corporation                                                          |  | (FF)
|10.40   |  | Securities Deposit Pledge Agreement dated December 31, 2004
    by Corixa Corporation in favor of General Electric Capital
    Corporation                                                                             |  | (FF)
|10.41   |  | Securities Purchase Agreement dated August 9, 2002 among
    Corixa Corporation and the purchasers named therein                                                                                                       |  | (Z) 
|10.42   |  | Registration Rights Agreement dated August 9, 2002 among
    Corixa Corporation and the investors named therein                                                                                                        |  | (Z) 
|10.43   |  | Registration Rights Agreement dated June 13, 2003 for
    4.25% Convertible Subordinated Notes due July 1, 2008                                                                                                        |  | (U) 
|10.44+  |  | Credit Agreement between Corixa Corporation and NDC New Markets
    Investments IV, L.P., dated March 2, 2004                                                                                                          |  | (JJ)
|10.45   |  | Promissory Note dated March 2, 2004 in the principle amount
    of $14,550,000, by NDC New Markets Investments IV, L.P. in favor
    of Corixa Corporation                                                             |  | (JJ)
|10.46   |  | Security Agreement between Corixa Corporation and NDC New
    Markets Investment IV, L.P., dated March 2, 2004                                                                                                         |  | (JJ)
|10.47   |  | First Amendment, dated February 28, 2005, to the Security
    Agreement between Corixa Corporation and NDC New Markets
    Investment IV, L.P., dated March 2, 2004                                                    |  |    
|10.48   |  | Columbia Building Lease dated October 28, 1994 and Columbia
    Building Lease First Amendment dated December 29, 1995,
    each between Corixa Corporation and Fred Hutchinson Cancer
    Research Center             |  | (A) 
|10.49   |  | Second Amendment to Columbia Building Lease dated
    September 25, 1998 between Corixa Corporation and
    Alexandria Real Estate Equities, Inc., successor in interest to
    Fred Hutchinson Cancer Research Center |  | (B) 
|10.50   |  | Lease dated May 31, 1996 between Corixa Corporation and
    Health Science Properties, Inc.                                                                                                                            |  | (A) 
|10.51   |  | First Amendment to Lease dated January 31, 1997 between
    Corixa Corporation and Health Science Properties, Inc.                                                                                                     |  | (N) 
|10.52   |  | Second Amendment to Lease dated June 30, 1997 between
    Corixa Corporation and Alexandria Real Estate Equities, Inc.,
    formerly known as Health Science Properties, Inc.                                          |  | (N) 
|10.53   |  | Third Amendment to Lease dated November 1, 1998 between
    Corixa Corporation and Alexandria Real Estate Equities, Inc.,
    formerly known as Health Science Properties, Inc.                                        |  | (N) 
|10.55+  |  | Lease dated November 7, 1997 between HMS Gateway Office
    L.P. and Coulter Pharmaceutical, Inc.                                                                                                                      |  | (AA)
|10.55+  |  | First Amendment to Lease dated November 10, 1998 between
    HMS Gateway Office L.P. and Coulter Pharmaceutical, Inc.                                                                                                  |  | (G) 
|10.56   |  | Second Amendment to Lease dated May 19, 2000 between HMS
    Gateway Office L.P. and Coulter Pharmaceutical, Inc.                                                                                                      |  | (N) 
|10.57+  |  | Lease dated May 19, 2000 between HMS Gateway Office L.P.
    and Boulevard Associates II, LLC, as successor interest to
    HMS Gateway Office L.P. and Coulter Pharmaceutical, Inc.                                   |  | (S) 
|10.58+  |  | First Amendment to Lease dated January 15, 2002 between
    Gateway Boulevard Associates II, LLC, as successor interest
    to HMS Gateway Office L.P. and Coulter Pharmaceutical, Inc.                                |  | (S) 



---



##### Table of Contents



|        |  |                                                                                                                                                                                                                                    |  |     
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Exhibit |  |                                                                                                                                                                                                                                    |  |     
|Number  |  | Real Estate Agreements                                                                                                                                                                                                             |  | Page
|        |  |                                                                                                                                                                                                                                    |  |     
|10.59+  |  | Lease Agreement dated October 15, 2002 between Corixa
    Corporation and Lifesciences Building, LLC                                                                                                                               |  | (O) 
|10.60+  |  | Sublease Agreement dated April 4, 2003 between Coulter
    Pharmaceutical, Inc. and Gryphon Therapeutics, Inc.                                                                                                                     |  | (CC)
|10.61+  |  | Sublease Agreement dated May 15, 2003 between Coulter
    Pharmaceutical, Inc. and Corgentech, Inc.                                                                                                                                |  | (CC)
|10.62   |  | Sublease Agreement dated September 11, 2003 between Coulter
    Pharmaceutical, Inc. and Axys Pharmaceuticals, Inc.                                                                                                                |  | (X) 
|10.63   |  | First Amendment dated September 29, 2003 to Sublease
    Agreement dated September 11, 2003 between Coulter
    Pharmaceutical, Inc. and Axys Pharmaceuticals, Inc.                                                                |  | (Y) 
|10.64   |  | Standard Form of Agreement Between Owner and Contractor dated
    December 22, 2003 between Corixa Corporation and BN
    Builders, Inc.                                                                                           |  | (FF)
|        |  | Stock, Option and Retirement Plans                                                                                                                                                                                                 |  |     
|        |  |                                                                                                                                                                                                                                    |  |     
|       
|10.65   |  | 2001 Stock Incentive Plan                                                                                                                                                                                                          |  | (I) 
|10.66   |  | 1997 Directors Stock Option Plan                                                                                                                                                                                                  |  | (A) 
|10.67   |  | 2001 Employee Stock Purchase Plan                                                                                                                                                                                                  |  | (J) 
|10.68   |  | Corixa Corporation 401(k) Savings & Retirement Plan                                                                                                                                                                                |  | (LL)
|10.69   |  | Coulter Pharmaceutical, Inc. 1996 Employee Stock Purchase Plan                                                                                                                                                                     |  | (F) 
|10.70   |  | Coulter Pharmaceutical, Inc. 1995 Equity Incentive Plan                                                                                                                                                                            |  | (F) 
|10.71   |  | Coulter Pharmaceutical, Inc. 1996 Equity Incentive Plan                                                                                                                                                                            |  | (F) 
|        |  | Agreements with Officers and Directors                                                                                                                                                                                             |  |     
|        |  |                                                                                                                                                                                                                                    |  |     
|       
|10.72   |  | Form of Indemnification Agreement between Corixa Corporation and
    each director and officer of Corixa Corporation                                                                                                               |  | (LL)
|10.73   |  | Form of Corixa Corporation Executive Employment Agreement                                                                                                                                                                          |  | (FF)
|10.74   |  | Amendment to Form of Corixa Corporation Executive Employment
    Agreement                                                                                                                                                         |  | (KK)
|10.75   |  | Amendment to Form of Corixa Corporation Executive Employment
    Agreement entered into between Corixa Corporation and each of
    Michelle Burris, David Fanning, Steven Gillis, Ph.D. and
    Kathleen McKereghan Deeley         |  | (MM)
|10.76   |  | Schedule of officers party to Corixa Corporation Executive
    Employment Agreement                                                                                                                                                |  |    
|21.1    |  | Subsidiaries of Corixa Corporation                                                                                                                                                                                                 |  |    
|23.1    |  | Consent of independent registered accounting firm                                                                                                                                                                                  |  |    
|24.1    |  | Power of Attorney (included on signature page)                                                                                                                                                                                     |  |     
|31.1    |  | Certification of Chief Executive Officer of Corixa Corporation
    required by Rule 13a-14(a) or Rule 15d-14(a) of the
    Securities Exchange Act of 1934, as amended                                                             |  |    
|31.2    |  | Certification of Chief Financial Officer of Corixa Corporation
    required by Rule 13a-14(a) or Rule 15d-14(a) of the
    Securities Exchange Act of 1934, as amended                                                             |  |    
|32.1    |  | Certification of Chief Executive Officer and Chief Financial
    Officer of Corixa Corporation required by Rule 13a-14(b) or
    Rule 15d-14(b) of the Securities Exchange Act of 1934, as
    amended, and 18 U.S.C. Section 1350 |  |    



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##### Table of Contents








|    |  |                                                                                                                                                              
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------
|(A) |  | Incorporated herein by reference Corixas Form S-1/ A
    (File No. 333-32147), filed with the Commission on
    July 25, 1997.                              
|   
|(B) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 0-22891), filed with the Commission on
    November 12, 1998.                           
|   
|(C) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    November 10, 1998.                            
|   
|(D) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    April 23, 1999.                               
|   
|(E) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    January 4, 2001.                              
|   
|(F) |  | Incorporated herein by reference to Corixas Registration
    Statement on Form S-8 (File No. 333-52968), filed with
    the Commission on December 29, 2000.
|   
|(G) |  | Incorporated herein by reference to Coulter Pharmaceutical,
    Inc.s Form 10-K, (File No. 000-21905), filed
    with the Commission on March 30, 1999.     
|   
|(H) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 000-22891), filed with the Commission on
    November 6, 2000.                          
|   
|(I) |  | Incorporated herein by reference to Corixas Registration
    Statement on Form S-8 (File No. 333-65394), filed with
    the Commission on July 19, 2001.    
|   
|(J) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 000-22891), filed with the Commission on
    August 10, 2001.                           
|   
|(K) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 000-22891), filed with the Commission on
    December 17, 2001.                          
|   
|(L) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 000-22891), filed with the Commission on
    August 9, 1999.                            
|   
|(M) |  | Incorporated herein by reference to Corixas
    Form 10-K/ A (File No. 000-22891), filed with the
    Commission on June 24, 2002.                          
|   
|(N) |  | Incorporated herein by reference to Corixas Form 10-K
    (File No. 000-22891), filed with the Commission on
    March 1, 2002.                             
|   
|(O) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 000-22891), filed with the Commission on
    October 21, 2002.                           
|   
|(P) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 000-22891), filed with the Commission on
    December 5, 2002.                           
|   
|(Q) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 000-22891), filed with the Commission on
    August 13, 2002.                           
|   
|(R) |  | Incorporated herein by reference to Corixas Form 8-K/
    A (File No. 000-22891), filed with the Commission on
    May 29, 2002.                            
|   
|(S) |  | Incorporated herein by reference to Corixas Form 10-K
    (File No. 000-22891), filed with the Commission on
    February 25, 2003.                         
|   
|(T) |  | Incorporated herein by reference to Corixas Amendment to
    Registration Statement on Form 8-A/ A, filed with the
    Commission on March 6, 2003.         
|   
|(U) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    June 18, 2003                                 
|   
|(V) |  | Incorporated herein by reference to Corixas Form 8-K/
    A (File No. 000-22891), filed with the Commission on
    July 29, 2003.                           
|   
|(W) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    September 9, 2003                             
|   
|(X) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    September 11, 2003                            
|   
|(Y) |  | Incorporated herein by reference to Corixas Form 8-K/
    A (File No. 0-22891), filed with the Commission on
    September 29, 2003                         
|   
|(Z) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    August 13, 2002                               



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##### Table of Contents





|     |  |                                                                                                                                                       
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------
|(AA) |  | Incorporated herein by reference to Coulter Pharmaceutical,
    Inc.s Form 10-K (File No. 000-21905), filed with
    the commission on March 27, 1998
|    
|(BB) |  | Incorporated herein by reference to Corixas Form 10-K
    (File No. 000-22891), filed with the Commission on
    March 30, 2001                      
|    
|(CC) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    June 9, 2003                           
|    
|(DD) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 0-22891), filed with the Commission on
    August 14, 2000                       
|    
|(EE) |  | Incorporated herein by reference to the Power of
    Attorney granted below in this report on Form 10-K.                                            
|    
|(FF) |  | Incorporated herein by reference to Corixas Form 10-K
    (File No. 0-22891), filed with the Commission on
    March 9, 2004                         
|    
|(GG) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 0-22891), filed with the Commission on
    May 15, 2002                          
|    
|(HH) |  | Incorporated herein by reference to Corixas
    Form 10-QA (File No. 0-22891), filed with the
    Commission on December 13, 2004                    
|    
|(II) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    September 24, 2004                     
|    
|(JJ) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 0-22891), filed with the Commission on
    May 6, 2004                           
|    
|(KK) |  | Incorporated herein by reference to Corixas Form 10-Q
    (File No. 0-22891), filed with the Commission on
    November 9, 2004                      
|    
|(LL) |  | Incorporated herein by reference to Corixas Form S-1/
    A (File No. 333-32147), filed with the Commission on
    September 19, 1997                
|    
|(MM) |  | Incorporated herein by reference to Corixas Form 8-K
    (File No. 0-22891), filed with the Commission on
    January 6, 2005                        
|    
|+    |  | Confidential treatment granted by order of the SEC.                                                                                                   
|    
|*    |  | Confidential treatment sought by Corixa Corporation from the SEC.                                                                                     
|    
|    |  | Filed herewith.