Infinity extends global strategic alliance with Mundipharma for development, commercialization of IPI-926

Mundipharma Commits to Providing Up to $110 Million in R&D Funding for 2012 in Addition to $85 Million Previously Committed for 2011

Companies Agree Upon Event-Based Approach for IPI-926 Funding Commitments Beyond 2012

Infinity Pharmaceuticals, Inc. (Nasdaq:INFI) today announced the extension of its global strategic alliance with Mundipharma International Corporation Limited to develop and commercialize IPI-926, Infinity's novel Smoothened antagonist, as well as development candidates arising from Infinity's phosphoinositol-3-kinase (PI3K) and discovery programs. In conjunction with this extension, Mundipharma has expanded the committed research and development funding of $85 million for 2011 to include an additional $110 million for 2012. This continued funding reflects the clinical and commercial potential of Infinity's pipeline as well as the progress made across Infinity's discovery and clinical programs since the alliance began in 2008.

Infinity also announced today that its agreement with Mundipharma was amended to align funding commitments for IPI-926 beyond 2012 with anticipated clinical events. Pursuant to this amendment, Mundipharma's next funding commitment for IPI-926 will occur after Infinity's end-of-Phase 2 meeting with the U.S. Food and Drug Administration (FDA) pertaining to the ongoing study of IPI-926 in patients with pancreatic cancer, as opposed to the current annual calendar-based renewal.

"Our relationship with Mundipharma provides us with the financial resources and independence to aggressively pursue our goal of developing our pipeline of novel drug candidates and gives us the opportunity to commercialize our own products in the U.S.," stated Adelene Q. Perkins, president and chief executive officer of Infinity. "Mundipharma and Purdue have been wonderful partners, and we are pleased to continue working together to bring important new medicines to patients."

"We see tremendous promise in Infinity's pipeline in cancer, inflammation and pain, as evidenced by the potential for IPI-926, a potentially new approach for treating pancreatic cancer and a broad range of other cancers," said Thomas Mehrling, M.D., director of European oncology at Mundipharma. "We look forward to continuing our productive partnership and expect that it will give us the opportunity to bring to market a number of innovative, best-in-class treatments for patients."