Panacea Pharmaceuticals, Inc. Announces the Licensing of Cancer Platform Technology and Signing of Collaborative Research Agreement with Rhode Island Hospital/Brown University

Panacea Steps Up Development of Lead Compounds for Brain Tumors and Liver Cancers

ROCKVILLE, Md.--(BW HealthWire)--June 6, 2000-- Panacea Pharmaceuticals,
Inc. announced today the signing of both a License Agreement and a Collaborative Research Agreement with Rhode Island Hospital/Brown University for Human Aspartyl (Asparaginyl) Beta-Hydroxylase (HAAH). The over-expression of HAAH is associated with the transformation of normal cells to malignant tumors.

In animal studies, levels of the enzyme Aspartyl (Asparaginyl) Beta-Hydroxylase are markedly increased in tumors. When the gene for this enzyme is inserted into normal cells and the over-expression of the enzyme is initiated, the cells transform into cancer cells. The injection of cells containing the gene for the enzyme into mice causes tumor formation whereas non-transfected cells do not produce tumors.

Previously published studies have shown the over-expression of HAAH in 100% of human cholangiocarcinomas, but not in regenerating bile duct cells. Moreover, increased levels of HAAH have been observed in breast cancer, colon cancer, and hepatocellular carcinomas, some of the most prevalent tumors in the world.

"Both the preliminary and animal data suggest that HAAH could potentially
provide the breakthrough needed in both diagnostic testing and treatment for these and other cancers," said Dr. Jack R. Wands, the Principal Investigator at Rhode Island Hospital.

Dr. Wands is currently Chief of the Division of Gastroenterology at Lifespan Rhode Island Academic Medical Center, Director of the Liver Research Center, Professor of Medicine at Brown University School of Medicine, and Head of the Gastroenterology Section at Brown University. "We are currently studying the role of HAAH in central nervous system neoplasms and its utility as a target in drug development for brain tumors such as glioblastoma multiforme," said Suzanne de la Monte, M.D., the neuropathologist on Brown's research team.

Dr. de la Monte is currently Associate Professor of Medicine, Pathology, and Pathobiology at Brown University School of Medicine/Rhode Island Hospital.

Panacea Pharmaceuticals, Inc. has exclusive worldwide commercialization rights for the use of HAAH in human cancers through its License Agreement with Rhode Island Hospital/Brown University. The Collaborative Research Agreement for HAAH, also with Rhode Island Hospital, grants Panacea commercialization rights to all future developments.

"Panacea is actively pursuing the development of pre-clinical candidates for brain tumor therapy and lead compounds for liver cancers using established HAAH-based in vitro and in vivo models," said Hossein A. Ghanbari, Ph.D., President and CEO of Panacea. "Our strategy is to outsource and form strategic partnerships to maximize multi-cancer drug development that will affect the course of these diseases."

"Panacea is also developing HAAH-based diagnostic tests for several cancers, particularly glioblastoma multiforme, hepatocellular carcinoma, cholangiocarcinoma, and pancreatic cancer. Early and accurate diagnosis of these cancers have to date been elusive and are critical for the possibility of current treatments to be effective," said Kasra Ghanbari, Chief Operating Officer of Panacea. "We envision that these tests would also be used for prognosis and in the further evaluation of our drug
candidates."

Panacea Pharmaceuticals, Inc. focuses on developing and utilizing protein-based technologies to detect and identify changes associated with and involved in diseases of the central nervous system such as Alzheimer's disease, brain tumors, transmissible spongiform encephalopathies, and Lewy Body diseases such as Parkinson's disease.

Changes in disease-relevant proteins by altered expression, post-translational modification, and functional variation are utilized to develop diagnostic tests and therapeutic agents.