September 12, 2006– Gaithersburg, Maryland – Panacea Pharmaceuticals, Inc. will present data on their novel and proprietary cancer biomarker during the Molecular Diagnostics in Cancer Therapeutic Development meeting, sponsored by the American Association for Cancer Research, starting today in Chicago. The Company's scientists will give a presentation on the utility of gene expression of Human aspartyl (asparaginyl) Beta-hydroxylase (HAAH) as a biomarker to diagnose and monitor disease status in patients with Acute Myelogenous Leukemia (AML), along with a poster describing data supporting serum HAAH as a biomarker for prostate cancer. In addition, Company scientists will present a poster on the manufacture of anti-HAAH antibodies as potential human therapeutics.

The 2006 AACR-Molecular Diagnostics in Cancer Therapeutic Development meeting will be held September 12-15th at the Hyatt Regency Chicago. This multidisciplinary meeting will be attended by more than 700 individuals including basic scientists, clinical oncologists, and physician-scientists from academia, government and industry.

Panacea conducted a series of experiments using blood samples from patients with AML. At the time of diagnosis leukocytes from patients displayed increase HAAH gene expression when compared to healthy normal subjects. Increased HAAH gene expression was detected in multiple AML subtypes, as well. HAAH gene expression decreased to near normal levels following successful treatment. These data suggest that HAAH gene expression measured in peripheral blood leukocytes may be helpful in monitoring remission in patients with AML and may replace bone marrow biopsy, a painful and expensive diagnostic procedure.

Another series of experiments examined serum levels of HAAH in patients with and without prostate cancer. Serum HAAH levels were significantly elevated in all patients with prostate cancer, and not in those without prostate cancer, as confirmed by biopsy. These preliminary results indicate that serum HAAH may have significantly higher sensitivity and specificity for the diagnosis of prostate cancer compared to prostate-specific antigen, the most commonly used serum screening diagnostic tool. Additional clinical studies are underway to determine the diagnostic performance of the serum HAAH assay in prostate cancer screening. The Company plans to offer serum HAAH diagnostic testing in January 2007.

As part of its cancer therapeutic product development efforts, Panacea has developed human anti-HAAH antibodies; production of these antibodies has been initiated at a contract manufacturer. Initial therapeutic targets for monoclonal antibody products include prostate and liver cancers. Murine monoclonal anti-HAAH antibodies have been shown to inhibit tumor cell proliferation, motility and invasiveness. Efficacy of these antibodies has been demonstrated in several in vivo xenograft cancer models. The Company has successfully re-engineered two murine anti-HAAH antibodies as mouse-human chimeras. In addition, the Company in collaboration with the Massachusetts Institute of Technology has developed an engineered, fully human anti-HAAH antibody. These antibodies have demonstrated functional equivalence to their murine counterparts in terms of antigen specificity and binding.

"As a small company, we are quite excited to be invited by AACR to give one oral presentation and two posters during the Molecular Diagnostics in Cancer Therapeutic Development meeting," commented Hossein Ghanbari, Ph.D., Chairman, CEO and CSO of Panacea Pharmaceuticals. "We view these opportunities as recognition of our scientific and product development achievements, and we look forward to commercial success in the next few years."

About Panacea's Oncology Platform
Panacea is pursuing the development of antibodies directed against Human aspartyl (asparaginyl) Beta-hydroxylase (HAAH) as novel agents for the treatment of cancer with liver cancer as its first intended indication. The Company is exploring both naked anti-HAAH antibodies, as well as antibody conjugates with various chemotherapeutic agents as lead candidates. Panacea is also pursuing the development of diagnostic products based on HAAH gene expression and anti-HAAH antibodies. A test to determine responsiveness to a current therapy of choice in patients with chronic myelogenous leukemia utilizing HAAH gene expression is available through Panacea Laboratories. A proprietary blood-based assay has shown high sensitivity and specificity in the detection of a range of cancers, thus facilitating the diagnosis and therapeutic management of disease. Initial targets for the blood-based diagnostic products include prostate and liver cancers.

About Panacea Pharmaceuticals, Inc.
Panacea Pharmaceuticals, Inc. is a privately-held biopharmaceutical company focused on the development and commercialization of therapeutics and diagnostics for diseases with substantial, unmet clinical needs. The Company's product development strategy is based on novel therapeutic agents and approaches for cancer treatment, as well as acute and chronic neurodegenerative conditions, such as hypoxia-induced neurological insult, Parkinson's Disease, and Alzheimer's disease. Panacea has an extensive patent portfolio covering its neurodegenerative and oncology technologies.

More information about the Company 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.