Panacea Pharmaceuticals, Inc. Announces Evidence that HAAH Oncology Target Regulates Metastatic Tumor Cell Growth and that Levels Correlate with Poor Prognosis

September 21, 2004 – Gaithersburg, Maryland – Panacea Pharmaceuticals, Inc. announced today major new findings on its HAAH Oncology Program as reported in Cancer Detection and Prevention (available on line).

Human aspartyl (asparaginyl) Beta-hydroxylase (HAAH) expression in surgically resected intrahepatic cholangiocarcinoma (ICC) has shown to significantly correlate with tumor size, growth type, differentiation, vascular invasion, and prognosis after surgery. The findings demonstrate that HAAH has an important role in the regulation of invasive and metastatic tumor cell growth of human ICC, and may serve as an important marker for the diagnosis and prognosis of ICC as well as other cancers.

In correlating HAAH levels with prognosis, samples from 50 cancer patients, 12 control individuals, and 12 patients with sclerosing cholangitis were tested. All normal and sclerosing cholangitis samples were negative for HAAH expression. Survival at 18 months for low HAAH expressing (n=13) cancer patient samples was 88% but was only 9% for high expressing (n=37) samples.

"It is certainly possible to measure serum and tissue levels of HAAH for cancer diagnosis, to target HAAH for cancer prevention and treatment, to examine HAAH for prognosis and subsequently, use HAAH for surveillance and even to predict the aggressiveness of cancer in choosing a treatment option. HAAH is a common thread that may allow a true integration of cancer diagnostics and therapeutics for better management of the disease," stated Hossein A. Ghanbari, PhD, CEO and Chief Scientific Officer of Panacea.

The paper, entitled, "Clinicopathological correlates of aspartyl (asparaginyl) Beta-hydroxylase over-expression in cholangiocarcinoma," reports a study led by Panacea collaborators Dr. Jack R. Wands and Dr. Suzanne de la Monte of Rhode Island Hospital and Brown Medical School. The study was conducted with the Departments of Anatomic Pathology and Surgery and Science in the Graduate School of Medical Sciences at Kyushu University in Fukuoka, Japan as well as the Department of Gastroenterology and Hepatology at the Mayo Clinic in Rochester, Minnesota. The publication may be viewed online at http://www.ScienceDirect.com.

About HAAH

HAAH is a membrane-associated enzyme that is over-expressed by many malignant cells and is associated with proliferation, motility, and invasiveness of cancer cells. HAAH over-expression has been observed by immunohistochemical staining of primary tumor tissue in more than twenty 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 1000) tested to date and has not been detected in normal or adjacent non-affected tissue. 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 has been shown 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.

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.

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.