Panacea Pharmaceuticals, Inc. Awarded SBIR from National Institute of Neurological Disorders and Stroke to Develop Neuroprotectants for Stroke and Other Ischemia-Related Conditions

April 6, 2004 - Gaithersburg, Maryland - Panacea Pharmaceuticals, Inc. announced today that it has been awarded a Phase I Small Business Innovation Research (SBIR) grant from the National Institute of Neurological Disorders and Stroke (NINDS) of the National Institutes of Health (NIH).

The grant, entitled, "A Novel Neuroprotective Approach for Ischemia," will provide funding towards the evaluation of the toxicity, efficacy, and mechanism of action of PAN-811 and its derivatives as neuroprotectants for global and focal ischemia. The Company developed and utilized several cell-based screening assays modeling ischemic neuronal cell death to identify PAN-811, a bioavailable small molecule that displays potent neuroprotection in our assays. The scope of work under the grant also includes examination of these compounds in an animal model of transient focal brain ischemia to evaluate in vivo efficacy and toxicity.

"We are pleased to receive a fourth SBIR award from the NIH, as it points to the significance of the technologies we are developing," stated Bijan Almassian, PhD, Chief Operating Officer of the Company. "Our recent results demonstrate that PAN-811 can efficiently block hypoxia- and ischemia-induced neurodegeneration. The funded SBIR proposes further studies in lead optimization, determination of the mechanism of drug action, and preclinical animal-based efficacy studies of PAN-811 as a neuroprotectant for ischemic-related disease."

Ischemia-related diseases encompass a large group of maladies and associated syndromes resulting from neuronal cell death subsequent to ischemia. The clinical significance of cerebral ischemia is compounded by the lack of effective neuroprotective treatments that directly inhibit ischemic neuronal death. Therefore, discovery and development of neuroprotectants is a priority in the prevention and treatment of ischemic-related disease.

The neurodegenerative signaling cascade initiated by ischemia is complex, involving glutamate release and glutamate receptor activation, intracellular calcium ion accumulation, free radical production, and consequent necrosis and apoptosis. Neurodegeneration is a multi-step process, and while ischemia is the initiating event, the process may continue for several hours to several days even after reperfusion. As such, drugs capable of interfering in a single or multi-step manner within the ischemia cascade have the neuroprotective properties to be used prior to, during, and well after the initiating event.

Market Opportunity

Ischemia is often associated with neuronal injury and subsequent neurodegeneration. Focal ischemia as occurs in ischemic stroke causes both brain as well as spinal cord damage. In the US, the incidence of stroke is on the order of 800,000 cases per year and more than 4 million peoples are currently living with the consequences of stroke. Stroke is the third leading cause of death in the US, and a major cause of long-term disability.

Global ischemia occurs in many abnormal conditions, including intracerebral hemorrhage due to hypertension and subarachnoid hemorrhage, as well it associates with cardiac arrest, hypotension, closed head injury, drowning, strangulation, and open-heart surgery. Hypoxia induced cognitive decline has been identified at discharge in 53% of patients following coronary artery bypass graft (CABG) operations. Although there is some further recovery, long-term measurements suggest that this decline is not transient (42% of patients at five years). Approximately 500,000 CABG procedures are performed in the US each year and a similar number are performed in Europe.

Recent studies in the etiology of Alzheimer's disease (AD) have indicated that hypoxia caused by hypoperfusion of the brain may contribute to the initiation and progress of the disease. AD is marked by significant neurodegeneration associated with high levels of reactive oxygen species production and cellular oxidative damage. Approximately 4 million people in the US are affected with AD, and that number is expected to grow as the US population ages.

About Panacea Pharmaceuticals, Inc.

Panacea Pharmaceuticals, Inc. is an emerging biopharmaceutical company focused on utilizing functional genomics and proteomics to develop therapeutics and diagnostics for diseases with substantial unmet clinical need. The Company's product development focus is on novel proteins and biochemical pathways related to cellular regulation and cell cycle abnormalities in oncology as well as both acute and chronic neurodegenerative conditions such as hypoxia-induced cognitive impairment, Parkinson's disease, and Alzheimer's disease.

More information is available at http://www.PanaceaPharma.com.

Except for historical information presented in this press release, matters discussed herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are based on the opinions and estimates of management only as of the date of this release and are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance, or achievements expressed or implied by such statements. Factors that might cause such a difference include, but are not limited to, uncertainties related to our access to capital, the progress, costs, and results of any clinical trials undertaken by us, progress of our research and development projects, and uncertainties related to whether our product candidates would ultimately achieve commercial success. We do not undertake any obligation to update publicly any forward-looking statement, whether as a result of new information, future events, or otherwise unless required by law.