INNOVIVE Pharmaceuticals Reports Third Quarter Results.

NEW YORK -- INNOVIVE Pharmaceuticals, Inc. (OTCBB: IVPH), a biopharmaceutical company that acquires, develops, and commercializes novel oncology and hematology therapeutics, today reported results for the three and nine months ended September 30, 2006.

* Net loss of $4.89 million, or $0.53 per share for the three months ended September 30, 2006 compared to a net loss of $1.06 million, or $0.34 per share for the three months ended September 30, 2005.

* Net loss of $12.41 million, or $2.27 per share for the nine months ended September 30, 2006 compared to $2.57 million or $0.83 per share for the nine months ended September 30, 2005.

* Cash used in operations was $4.88 million in the third quarter of 2006. The company ended the third quarter 2006 with $7.55 million in cash and cash equivalents, compared to $134,000 at the end of the third quarter 2005.

The additional use of funds was directed primarily towards increased research and development including the continued clinical development of INNOVIVE's three product candidates.

Some milestones achieved by INNOVIVE this quarter:

* Initiation of the INNO-406 phase I clinical trial in Gleevec refractory or intolerant chronic myelogenous leukemia (CML) at the MD Anderson Cancer Center in Texas and the Johann Wolfgang Goethe University Hospital in Germany.

* In-license of worldwide rights to INNO-206, a phase II ready doxorubicin pro-drug from KTB Tumorforschungs GmbH, Freiburg, Germany.

* Filing of S-1 registration statement with SEC and having it declared effective on August 10. Subsequently, on October 13, INNOVIVE's common shares were accepted for quotation on the NASDAQ Over the Counter Bulletin Board, under the trading symbol "IVPH."

* Discontinuation of INNO-105 after phase I study results showed a decreased likelihood of achieving desired efficacy levels without concomitant dose-limiting toxicity.

"I am pleased with the growth of the company and the rapid pace of clinical development in the third quarter. We look forward to reporting additional progress including preliminary clinical results on INNO-406 at the American Society of Hematology meeting in December," said Steven Kelly, President and Chief Executive Officer, INNOVIVE Pharmaceuticals, Inc. "We also are actively seeking new compounds to further leverage the expanded development infrastructure we put in place this year."

INNOVIVE's current pipeline comprises the following:

* INNO-406 is an orally bioavailable, rationally designed, dual Bcr-Abl and Lyn-kinase inhibitor being developed for the treatment of CML. According to a study published in the journal Blood (Dec. 1, 2005), INNO-406 is 25 to 55 times more potent than imatinib (Gleevec[TM]) in vitro, and at least 10 times as effective as imatinib mesylate in suppressing the growth of Bcr-Abl bearing tumors in vivo. INNO-406 has demonstrated activity against 12 of 13 imatinib-resistant cell lines with point mutations of the Bcr-Abl protein. INNO-406 also inhibits Lyn kinase, which is linked both to imatinib resistance and to a variety of solid tumors, including prostate cancer. A Phase I trial with adult patients with imatinib-resistant or intolerant Philadelphia positive leukemias is ongoing and preliminary results are planned for presentation at the American Society of Hematology meeting in December. Worldwide rights to INNO-406, excluding Japan, were licensed from Nippon Shinyaku in December 2005.

* INNO-206 is a prodrug for doxorubicin, a widely used chemotherapeutic agent in breast cancer, lung cancer, sarcomas and lymphomas. INNO-206 is a novel agent with attributes that improve on native doxorubicin, including reduction of adverse events, improvement in efficacy and the ability to reach the tumor more quickly. A Phase I study of INNO-206 that demonstrated safety and objective clinical responses in a variety of tumor types was completed earlier this year and presented in March 2006 in Berlin. In this study, doses of INNO-206 were administered at up to 4 times the standard dosing of doxorubicin without an increase in observed side effects over historically seen levels. Objective clinical responses were seen in patients with sarcoma, breast, and lung cancers. INNOVIVE licensed worldwide intellectual property rights to INNO-206 from KTB Tumorforschungs GmbH. and plans to file a US IND by year end and to initiate a phase II clinical study shortly thereafter.

* INNO-305 is a unique WT1 peptide immunotherapy being developed for acute myelogenous leukemia (AML). INNO-305 is designed to stimulate both CD8 and CD4 T-cells activation against WT1 in a robust fashion. The compound also utilizes technology in which the wild-type WT1 sequences are altered to improve the immunotherapeutic's ability to activate T-cells. A phase I clinical trial is currently underway to study INNO-305 in the treatment of AML, myelodysplastic syndrome (MDS), non small cell lung cancer (NSCLC) and mesothelioma. INNOVIVE licensed the compound from Memorial Sloan-Kettering Cancer Center.

About INNOVIVE Pharmaceuticals

INNOVIVE Pharmaceuticals, Inc. is a public biopharmaceutical company headquartered in New York, N.Y. The company's mission is to acquire, develop and commercialize novel therapeutics addressing significant unmet medical needs in the fields of oncology and hematology. For additional information visit www.innovivepharma.com.

This press release contains forward-looking statements that involve risks and uncertainties that could cause INNOVIVE's actual results to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements. Among other things, there can be no assurances that any of INNOVIVE's development efforts relating to its product candidates will be successful. Other risks that may affect forward-looking information contained in this press release include the possibility of being unable to obtain regulatory approval of INNOVIVE's product candidates, the risk that the results of clinical trials may not support INNOVIVE's claims, INNOVIVE's reliance on third party researchers to develop its product candidates and its lack of experience in developing pharmaceutical products. These and other risks are discussed in INNOVIVE'S Registration Statements on Form 10 and Form S-1 filed with the SEC. INNOVIVE assumes no obligation to update these forward-looking statements, except as required by law.

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