Panacea Pharmaceuticals, Inc. Proceeds with Pre-Clinical Studies on Antisense Compound PAN-346 for Treating Brain Cancers

Drug Development Plan Projects Commencement of Human Studies in 2001

ROCKVILLE, Md.--(BW HealthWire)--Nov. 14, 2000-- Panacea Pharmaceuticals, Inc. announced today that it is proceeding with pre-clinical studies for PAN-346, its lead candidate for the treatment of brain tumors. The Company remains on schedule to take PAN-346 into clinical trials in 2001.

The Company has finalized a Drug Development Plan for PAN-346 that includes the design of clinical trials for the treatment of patients with newly diagnosed as well as recurring tumor for both glioblastoma multiforme and anaplastic astrocytoma, which are the two most fatal primary brain cancers.

PAN-346 is an antisense-based drug designed to inhibit the expression of the enzyme aspartyl asparaginyl-Beta hydroxylase (AAH). Published studies have demonstrated that the overexpression of AAH leads to the transformation of normal cells to cancer cells in liver, brain, colon, pancreatic, and breast cancers. Studies on other cancers are currently underway.

PAN-346 works at the gene expression level to interrupt and inhibit the process by which AAH is produced. Antisense drugs are inherently more selective and, as a result, more effective and less toxic than traditional drugs. PAN-346 has been shown in vitro to be a highly effective inhibitor of AAH expression and activity.

The Company is also continuing to develop AAH-based cancer diagnostic tests. To date, 95% of samples taken from various cancers, including cholangiocarcinoma, pancreatic carcinoma, breast cancer, colon cancer, glioblastoma multiforme, oligodendroglioma, and primitive neuroectodermal tumors have shown a marked overexpression of AAH.

Samples taken from adjacent normal tissues have all shown undetectable levels of AAH.

"Our continuing body of data supports the exciting conclusion that AAH expression is an early and consistent feature in a broad range of aggressive cancers," said Alan H. Deutch, Ph.D., Vice President for Business Development and Director of Panacea's Diagnostic Division. "We are currently focused on the pursuit of our brain tumor drug candidate as well as the development of several cancer diagnostic tests and we are continuing to seek strategic partners to further develop and commercialize our cancer platform technology."

According to year 2000 projections made by the American Cancer Society, over half a million Americans are expected to die of cancer and approximately 1.2 million new cancer cases will be diagnosed. Since 1990, approximately 13 million new cases of cancer have been diagnosed. These estimates exclude nearly all noninvasive cancers and the major types of skin cancer.

Worldwide, cancer diagnosis represents an estimated $4 billion market.

About Panacea Pharmaceuticals

Panacea Pharmaceuticals, Inc. focuses on developing and utilizing protein-based technologies to detect and identify changes associated with and involved in diseases of the central nervous system and cancer such as Alzheimer's disease, brain tumors, transmissible spongiform encephalopathies, and Lewy body diseases such as Parkinson's disease. Changes in disease-relevant proteins by altered expression, post-translational modification, and functional variation are utilized to develop diagnostic tests and therapeutic agents.