Harvard Researcher Publishes Novel Mechanism of Anti-Cancer Activity -- Publication Key to Development of Imutec Pharma Drug Candidates.

TORONTO--(BUSINESS WIRE)--July 8, 1998--Imutec Pharma Inc. (NASDAQ:IMUTF) (TSE:IMT.) (ME:IMT.) Imutec Pharma Inc. today announced the publication of an article describing the novel mechanism of the anti-cancer activity of clotrimazole (CLT). This announcement provides additional information to a related announcement made by the Company in May 1998. The findings were disclosed by Dr. Jose A. Halperin, Associate Professor of Medicine at Harvard Medical School, in the prestigious journal, Proceedings of the National Academy of Science (PNAS - Vol. 95:8280-8285, July 7, 1998).

According to Dr. Halperin, "The medical appeal of clotrimazole and Imutec Pharma's related NuChem analogues comes from the fact that CLT has already been used in humans for other applications, and that CLT inhibited tumor growth in several animal models of cancer without any apparent toxicity, even after daily administration for several weeks. It is likely that this combination of low-toxicity and high anti-cancer activity derives from CLT's novel mechanism of action. For this reason, CLT and its analogues are promising new therapeutic tools in cancer therapy."

Dr. Halperin has reported that clotrimazole (CLT) stops cells from multiplying by a very specific and novel mechanism of action. CLT depletes intracellular calcium stores, thereby activating an enzyme known as PKR which in turn inhibits synthesis of proteins at the level of translation initiation. In particular, CLT inhibits translation initiation and thereby accumulation of proteins such as cyclin D1, E and A, called G1 cyclins, that promote cell growth in the G1 phase of the cell cycle. By this mechanism, CLT blocks cell cycle progression into S phase and inhibits cell growth.

Dr. Robert Kerbel, Director of Cancer Biology Research at Toronto's Sunnybrook Health Science Centre, Professor of Experimental Oncology at the University of Toronto, commented that Dr. Halperin's findings represent a potentially important advance in the development of a non-cytotoxic class of anti-cancer drugs called cell cycle inhibitors. "There's a great deal of interest in this type of drug, and another similar class of anti-cancer drug called signal transduction inhibitors", said Dr. Kerbel. He noted that this level of interest was given another major boost after the recent report of clinical trial results in Los Angeles involving a new signal transduction inhibitor called Herceptin (produced by Genentech Inc. of San Francisco). Herceptin targets a gene product that is altered in a minority of patients with breast, ovarian, or head and neck cancers. "In contrast", continued Dr. Kerbel, "Clotrimazole and similar compounds target G1 cyclins, and the proteins which regulate translation initiation, which involve a far broader spectrum of cancers, including breast, colon, and lung carcinomas."

"We are very pleased to announce the publication of this research in PNAS," added Mr. Philippe G. Lacaille, President and Chief Executive Officer of Imutec Pharma. "The discovery of the novel mechanism of action of our compounds positions Imutec Pharma among the leaders in this exciting area of cancer research. The related research agreement with Harvard is very significant as we will be able to draw upon Dr. Halperin's expertise in order to find additional compounds that could be added to our drug development pipeline."

Imutec Pharma has recently announced that it had signed a research agreement with Harvard Medical School and Dr. Halperin to explore this novel mechanism further and to generate additional anti-cancer compounds. The recent identification within CLT's chemical structure of the pharmacophore responsible for CLT's calcium depleting and antiproliferative action has already led to the design and synthesis of a number of more potent and selective analogues of CLT for cancer therapy. Several of these compounds, termed NuChem analogues, have been shown to be less toxic and more potent in their anti-proliferative effect than CLT, and the Company is currently assessing these compounds for superior anti-angiogenic activity as well. These analogues are currently under preclinical development by Imutec Pharma at a number of sites across North America, including Harvard Medical School, University of Nebraska Medical Centre, and McMaster University. Progression of the ongoing research program and results of the preclinical development of these compounds will be announced over the next several months.

Imutec Pharma Inc. is a pharmaceutical company engaged in the development and commercialization of innovative products for the treatment of cancer and certain viral diseases. Through an active acquisition and in-licensing program, Imutec Pharma's goal is to build and clinically develop a portfolio of innovative drugs targeted at life-threatening diseases. Thereafter, Imutec Pharma intends to undertake late stage clinical development and marketing in cooperation with strategic pharmaceutical partners. Founded in 1986, Imutec Pharma Inc. is a public company listed on the Toronto Stock Exchange and the Montreal Stock Exchange under the symbol IMT and on the NASDAQ exchange under the symbol IMUTF.

Except for historical information, this press release contains forward -looking statements which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks detailed from time-to-time in the Company's ongoing quarterly filings, annual reports and 20-F filings.

Imutec Pharma's press releases are available through the Company's Internet site: http://www.imutec.com

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