Panacea Pharmaceuticals, Inc. Signs License Agreement with Massachusetts General Hospital/Harvard University for SF-25 Oncology Program

GAITHERSBURG, Md., Sept. 15 /PRNewswire/ -- Panacea Pharmaceuticals, Inc. announced the signing of a License Agreement with Massachusetts General Hospital/Harvard University granting the Company exclusive, worldwide rights to develop and commercialize diagnostic and therapeutic products based on a patented cancer target.

The target is a protein expressed on the surface of cancer cells including those of the colon, liver and pancreas. A highly sensitive and specific monoclonal antibody, SF-25, has been developed against this protein.

Background on SF-25 Oncology Program

SF-25 was first identified as part of the same research program that resulted in the discovery of human aspartyl (asparaginyl) Beta-hydroxylase or HAAH. Panacea obtained an exclusive, worldwide license for diagnostic and therapeutic uses of HAAH in 1999. 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. Panacea retained all rights to the development of diagnostic products based on HAAH, which it is developing internally and through its subsidiary, Proteus Diagnostics, Inc.

Substantial data have been generated with respect to SF-25's target binding characteristics and activity in vitro. Additionally, SF-25 has been used in vivo in mouse human colon cancer xenograft models and shows great promise as a therapeutic agent. It also has been labeled with radioactive iodine and used very effectively as an imaging agent in the same murine model.

Although the gene which encodes the protein to which SF-25 binds has not yet been cloned, it is known that SF-25 binds to an approximate 125kD cell surface heterodimeric glycoprotein that is highly expressed in malignant neoplastic cells of gastrointestinal, bronchial or mammary origin.

A recent publication (Palumbo, KS et al, Pancreas, Vol. 25, pp. 39-44) reported on utilization of immunohistochemical techniques to determine binding to pancreatic adenocarcinoma. SF-25 immunoreactivity was detected in 14 of 19 pancreatic cancers and not in normal or non-affected tissue. Notably, SF-25 immunoreactivity was predominantly located along the cell membranes.

Another publication (Takahashi, H. et al, Gastroenterology, Vol. 108, pp. 172-182) examined whether SF-25 could inhibit the outgrowth of hepatic metastases of human colon adenocarcinoma in an athymic nude mouse model. A single intravenous injection of SF-25 significantly inhibited the outgrowth of five and seven day hepatic micrometastases and improved the survival of the animals. No detectable tumor was found in the liver when mice were treated by multiple injections of the antibody immediately after tumor cell grafting into the portal vein.

"We plan to develop and commercialize three products or product families based on SF-25: therapeutics, in vivo imaging agents and in vitro diagnostics. All three initially will target colon and pancreatic adenocarcinoma," stated Kasra Ghanbari, President of the Company. "Assuming that these development efforts are successful, we will proceed to evaluate the applicability of the antibodies to therapeutic and diagnostic products for other malignancies, including carcinomas of the lung, liver, esophagus, small intestine and stomach as well as other morphologic types of colon cancer."

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 both acute and chronic neurodegenerative conditions such as hypoxia-induced cognitive impairment, Parkinson's disease, and Alzheimer's disease. The Company's wholly-owned subsidiary, Proteus Diagnostics, Inc., will be developing in vitro diagnostics including pharmacogenomic and pharmacoproteomic tools for cancer detection, diagnosis, prognosis, treatment selection, and follow-up.

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