We have made excellent progress toward the identification of a preclinical candidate for the treatment of osteoarthritis. A large structure-activity relationship study was carried out with the chemical synthesis of over 250 analogues of the original lead compound. We have identified molecules with improved activity in cell culture and in relevant preclinical in vivo models. Based on these efforts we are synthesizing a final series of molecules which we will profile with respect to in vitro and in vivo chondrogenesis activity, pharmacokinetics and safety. We expect to choose the final preclinical candidate from this series in the third year of the grant.