Panacea Pharmaceuticals, Inc. and Olympus Optical Co., Ltd. Sign Collaborative Research Agreement for MF20 System

GAITHERSBURG, Md., May 7 /PRNewswire/ -- Panacea Pharmaceuticals, Inc. announced today that it has entered into a Collaborative Research Agreement with Olympus Optical Co., Ltd. in Tokyo, Japan (www.olympus.co.jp) to develop an array of assays utilizing Olympus' newly launched MF20 system for the analysis of biomolecular interactions. Olympus launched the MF20 in Japan in September 2002 and will be making it available to overseas markets by the end of 2003. The MF20 system was developed jointly with Evotec Technologies GmbH in Hamburg, Germany.

The agreement was brokered by the Cosmos Alliance (www.cosmosalliance.com), a new global membership club established to advance the bio life sciences through the formation of strategic direct investment and research collaboration opportunities among its members.

"We will be utilizing the capabilities of the MF20 system across our entire research and methods development efforts," stated Steve Roberts, Ph.D., Senior Scientist for Methods Development and Project Manager for the MF20 collaboration. "Initial testing has already demonstrated that the MF20 has a wide range of applications as both a tool and an enabling element in our drug discovery efforts."

Background on MF20 System

Following the elucidation of the broad outline of the human genome, the focus of genomic research has switched to the analysis of protein function, dubbed proteomics. Many researchers in the field are now actively searching for ligands and other substances that interact with proteins. There has therefore been a strong demand for equipment that can facilitate the analysis of biomolecular function under conditions close to those that exist in the human body.

The MF20 employs a technique known as single molecular fluorescence spectroscopy that does not require sample to be in a solid phase. Instead, interactions between biological molecules can be studied directly in buffer solution. High-speed analysis yields data on functional biomolecular interactions and binding within a short period of time ranging from a few seconds to less than a minute, allowing applications ranging from high- throughput analysis to complex studies of molecular interaction. A combination of confocal laser optical system with a high-sensitivity fluorescence detection device permits measurements in an extremely small volume of around one femtoliter, thereby capturing any interactions at the level of single molecules. This set-up operates at low noise and detects fluorescent signals with extremely high sensitivity. The MF20 system can simultaneously measure and distinguish between the fluorescent signals of both bound and free molecules in a solution composed of both types. The time-consuming yet vital sample preparation and washing steps required with previous analytical methods are thus rendered unnecessary. In addition, since measurements are performed in solution, damage to the sample is minimal and artifacts from unspecific surface interaction are avoided, allowing the same sample to be rapidly put through other tests subsequently.

The MF20 system comes equipped with three standard analytical modes that provide different methods for studying samples: FCS, FIMDA, and FxCS. FCS (Fluorescence Correlation Spectroscopy) is a method for studying multiple molecular parameters (such as translational diffusion time, which indicates molecular size, or molecular concentrations) for various types of molecules using analysis of fluorescent signals. FIMDA (Fluorescence brightness Multiple Distribution Analysis) is a calculation method that measures, in addition to translational diffusion time and molecular concentration, the fluorescence brightness per molecule. FxCS (Fluorescence Cross-Correlation Spectroscopy) is a calculation method that analyzes fluorescent signals from molecules labeled with two different dyes to determine whether molecules are moving individually or bound together. This permits highly sensitive analysis of molecular interactions, which is particularly useful with types of analysis that were previously difficult to undertake, such as that of interactions between molecules of similar weight.

These permit the analysis of various molecular parameters, including size, concentration, fluorescence brightness, and the respective amounts of different molecules present. The system can also be applied to various types of analysis that were previously difficult to undertake, such as that of interactions between molecules of similar weight or simultaneous measurements at two different wavelengths. The system promises to make a significant contribution to the detailed elucidation of biological phenomena, thereby playing an important role in genome-based drug discovery.

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 neurodegenerative diseases, particularly Alzheimer's disease and Parkinson'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.