Panacea Pharmaceuticals, Inc. and MedImmune, Inc. Sign Collaboration and License Agreement to Discover, Develop, and Commercialize Cancer Therapeutics

Exclusive, worldwide agreement covers development of drugs using Panacea's HAAH Oncology Technology

ROCKVILLE, Md.--(BW HealthWire)--April 19, 2002-- Panacea Pharmaceuticals, Inc. is pleased to announce that it has signed a Collaboration and License Agreement with MedImmune, Inc. (NASDAQ:MEDI - news) to develop and commercialize drugs based on Panacea's HAAH Oncology Program, which targets the enzyme Human Aspartyl (Asparaginyl) Beta-Hydroxylase (HAAH).

"We are excited to be working with MedImmune to facilitate and expedite the development of compounds aimed at HAAH," stated Hossein A. Ghanbari, Ph.D., Chairman, President, and CEO of Panacea.

HAAH over-expression has been detected in primary tumor tissue of all eighteen tumor types tested to date, including cancers of the pancreas, breast, ovary, liver, colon, prostate, lung, brain, and bile duct. HAAH over-expression has been detected in 99% of tumor specimens (n>600) tested to date and has not been detected in normal or adjacent non-affected tissue.

Recent findings in preclinical studies have indicated that over-expression of HAAH is sufficient to induce cellular transformation, to increase cell motility and invasiveness, and to establish tumor formation in animals.

Even partial inhibition of HAAH expression appears to have a beneficial effect on tumor cells, causing them to revert to a more normal phenotype as measured by the inhibition of growth, motility, and invasiveness. Further, HAAH is over-expressed on the surface of cancer cells, potentially facilitating detection, drug delivery, and enzyme inhibition.

"This collaboration brings together significant resources and expertise that will create real synergy throughout the entire process of drug discovery to commercialization and will allow for the full breadth of application of this technology to be explored," stated Kasra Ghanbari, Chief Operating Officer of Panacea. "MedImmune is one of only a few fully-integrated, profitable biotech companies. Their dedication to oncology and their growing reach into global markets makes them an ideal partner."

In developing the technology, Panacea and its collaborators at Brown University/Rhode Island Hospital and Massachusetts Institute of Technology will provide discovery, research and development, and clinical trial support.

MedImmune will fund the discovery and development efforts for a period of three years, and will have sole responsibility for the commercialization of products resulting from this development effort. The companies will jointly share strategic oversight and decision making on all research and clinical development activities.

As a part of the agreement, MedImmune made an equity investment in Panacea and agreed to fund research activities related to HAAH in exchange for an exclusive, worldwide license to therapeutic products directed against HAAH. Panacea received an up-front payment and would be entitled to milestone payments and royalties on global product sales.

"The signing of this agreement with Panacea reflects our ongoing commitment to building a world-class oncology business," stated Dr. Peter Kiener, MedImmune's Vice President of Research. "We look forward to working with Panacea's management and scientific team to realize the exciting opportunity this platform technology offers for the potential treatment of multiple cancer types."

About MedImmune, Inc.

MedImmune is a leading biotechnology company focused on researching, developing and commercializing products to prevent or treat infectious disease, autoimmune disease and cancer.

MedImmune actively markets three products, Synagis (palivizumab), Ethyol (amifostine) and CytoGam (cytomegalovirus immune globulin intravenous (human)), and has 11 products in clinical testing.

MedImmune employs approximately 1,500 people, is headquartered in Gaithersburg, Maryland, and has additional operations in Frederick, Maryland, as well as Pennsylvania, California, the United Kingdom and the Netherlands. For more information on MedImmune, visit the company's website at www.MedImmune.com.

About Panacea Pharmaceuticals

Panacea Pharmaceuticals, Inc. is a development stage biopharmaceutical company focused on utilizing functional genomics and proteomics to develop therapeutics and diagnostics for cancer. The Company's technology pipeline includes drug development programs for central nervous system diseases, particularly Alzheimer's disease and Parkinson's disease.

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