Panacea Pharmaceuticals, Inc. Announces Important New Publications Supporting HAAH Oncology Program

ROCKVILLE, Md., August 29/PRNewswire/ -- Panacea Pharmaceuticals, Inc. announced today the publication of two scientific papers supporting its HAAH Oncology Program.

The first publication appeared in the journal Laboratory Investigation (July, vol. 82, pages 881-891). The paper, entitled, "Role of Aspartyl Asparaginyl beta-Hydroxylase Gene in Neuroblastoma Cell Motility," provided findings supporting AAH's role in the motility and aggressive behavior of tumor cells. The over-expression of AAH was observed in primary human malignant neuroectodermal tumors, including medulloblastomas and neuroblastomas. AAH expression was at a low or undetectable level in normal mature brain. Endogenous expression of AAH was observed in a neuroblastoma cell line, and the immunoreactivity was predominantly localized to the cell surface. Neuroblastoma cells that were transfected with the AAH gene had increased cell proliferation and motility. Inhibition of AAH using an antisense oligonucleotide significantly reduced cell motility. This along with other findings suggest that AAH overexpression contributes to the malignant phenotype by increasing motility and enhancing proliferation, survival, and cell cycle progression. The low or undetectable AAH expression in normal brain also makes AAH a viable target for treating primitive neuroectodermal tumors.

The second publication appeared in the journal Pancreas (July, vol. 25, pages 39-44). The paper, entitled, "Human Aspartyl (Asparaginyl) beta-Hydroxylase Monoclonal Antibodies: Potential Biomarkers for Pancreatic Carcinoma," evaluated anti-AAH antibodies for their binding specificity to pancreatic adenocarcinoma relative to normal pancreatic tissue. Intense levels of immunoreactivity were observed in all nineteen tumors tested, but not in normal adjacent pancreatic tissue. Increased levels of immunoreactivity were detected in at least 75% of the tumor cells in 18 of 19 cases. These results suggest that AAH is potentially an excellent biomarker for pancreatic adenocarcinoma.

Hossein A. Ghanbari, Ph.D., President and CEO of Panacea stated, "These are exciting findings in important and devastating cancers where early detection is imperative and current treatment strategies are inadequate. We are continuing to develop assays that will allow for the development of therapeutic agents aimed at AAH. These assays have the potential to be superior tools for total patient management from diagnosis to prognosis and beyond."

Background on HAAH Oncology Program

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 (greater than 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. HAAH is over-expressed on the surface of cancer cells, potentially facilitating detection, drug delivery, and enzyme inhibition.

Panacea signed a Collaboration and License Agreement with MedImmune, Inc. in early 2002 to discover, develop, and commercialize therapeutic agents for the prevention or treatment of human disease based on Panacea's HAAH technology or its pathways.

About Panacea Pharmaceuticals

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.