Panacea Pharmaceuticals, Inc. Presents Data on Several Drug Candidates At Society for Neuroscience 33rd Annual Meeting

The first platform presentation, entitled, "The Development of Novel Inhibitors of Alpha-Synuclein Oligomerization," was presented by Michael S. Lebowitz, PhD, Project Director for Parkinson's Disease at the Company. Dr. Lebowitz presented data in support of the inhibition of alpha-synuclein oligomerization as a promising approach for the treatment and possible prevention of PD. Data were also presented demonstrating that drug candidates PAN-408 and PAN-527 potently inhibit alpha-synuclein oligomerization in an in vitro assay of early events in alpha-synuclein oligomerization, an in vitro assay that measures later stage aggregation, and a cell-based model of PD with rotenone-induced formation of alpha-synuclein. Both candidates also rescued cellular growth of rotenone treated neuroblastoma cells.

The second platform presentation, entitled, "Neurodegeneration Caused by Hypoxia and Ischemia Do Not Share the Same Mechanism of Action," was presented by Zhi-Gang Jiang, MD, PhD, Senior Staff Scientist for Neuroprotection Program at the Company. Dr. Jiang presented data on the identification of neuroprotective agents that are able to minimize the effects of oxidative stress, which plays a primary role in the neurodegenerative disorders such as Alzheimer's disease. Utilizing neuronal cultures treated under conditions of hypoxia, ischemia, and/or highly reactive oxygen species, the Company has identified a class of new compounds including a lead candidate, PAN-811, which is a synthetic, neuro-available compound that fully protected neurons against these insults. The data also demonstrated that, although the end result of hypoxia and ischemia for the primary neurons are similar, the mechanism of action was observed to be different, having a significant effect on strategies for developing neuroprotectants.

The third presentation, entitled, "Identification of a Novel, Potent, Neuroavailable, and Cytoprotective Agent for Alzheimer's Disease," was presented by Weiying Pan, PhD, Staff Scientist for Alzheimer's Disease Program at the Company. Recent evidence has demonstrated that oxidative stress precedes clinical and pathological manifestations of AD and implicates oxidative stress as playing a primary role in the etiology of AD. Dr. Pan presented in vitro data on PAN-811 demonstrating that it had potent anti- oxidative stress activity. PAN-811 was also compared to known antioxidants such as Vitamin E and lipoic acid and showed much better neuroprotection and a more favorable therapeutic index. The Company plans to continue to develop PAN-811 and compounds based on PAN-811 for use in acute neurodegenerative conditions.

"Over the course of the last year, we have had breakthrough progress in our programs to develop drugs for brain diseases," stated Hossein A. Ghanbari, PhD, CEO and Chief Scientific Officer of the Company. "Our programs are based on the underlying causes or etiology of these diseases and have yielded candidate compounds that may have multiple mechanisms of action against a broad disease base. We will continue to explore and determine the application and action of these compounds as we narrow down the candidates and enter pre- clinical studies."

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.