Panacea Pharmaceuticals, Inc. and JSR Corporation Sign Collaborative Research Agreement for HAAH Cancer Diagnostics

GAITHERSBURG, Md., Dec. 9 /PRNewswire/ -- Panacea Pharmaceuticals, Inc. announced today that it has entered into a Collaborative Research Agreement with JSR Corporation (http://www.JSR.co.jp) of Tokyo, Japan to develop and improve various assays within Panacea's HAAH Oncology Program.

Under the agreement, JSR will provide its expertise and capabilities in magnetic particle fabrication and surface chemistries towards the development of specialized particles designed for maximum performance in various assays that measure HAAH. These assays represent potential tools for cancer detection, diagnosis, prognosis, treatment selection, and follow-up.

The agreement was brokered by the Cosmos Alliance (http://www.CosmosAlliance.com), a global membership club established to advance the bio life sciences through the formation of strategic direct investment and research collaboration opportunities among its members.

"We are delighted to be working with JSR to utilize their world-class expertise in the design and use of magnetic particles for diagnostic assays," stated Kasra Ghanbari, President of the Company.

Background on HAAH Oncology Program

The Company's HAAH Oncology Program is based on the enzyme human aspartyl (asparaginyl) beta-hydroxylase (HAAH).

HAAH over-expression has been detected in primary tumor tissue of 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.

Recent findings in 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. HAAH is over-expressed on the surface of cancer cells, potentially facilitating detection, drug delivery, and enzyme inhibition.

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 has retained all rights to the development of diagnostic products based on HAAH.

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.