Panacea Pharmaceuticals, Inc. Announces Collaboration with Massachusetts Institute of Technology Utilizing Breakthrough Technology for Engineering Ultra Affinity Antibodies.

Business Editors/Health & Medical Writers

BIOWIRE2K

ROCKVILLE, Md.--(BW HealthWire)--Feb. 7, 2001

Collaboration will provide the Company with several all-human,

ultra-affinity, single-chain antibodies for the treatment and

diagnosis of numerous cancers

Panacea Pharmaceuticals, Inc. announced today that it has signed a Collaborative Research Agreement with researchers at the Massachusetts Institute of Technology (MIT) in Cambridge, Massachusetts covering the development of all-human, ultra-affinity, single-chain antibodies for its cancer platform technology.

The research group is led by K. Dane Wittrup, Ph.D., J.R. Mares Professor of Chemical Engineering and Bioengineering at MIT.

Dr. Wittrup stated, "We are excited to be collaborating with Panacea to develop these novel molecules. Panacea's cancer technology provides an extraordinary treatment and diagnostic approach that is well-suited to utilize all of the diverse applications of our technology."

Background on Cancer Technology

The Company's cancer platform technology is based on the enzyme aspartyl asparaginyl-Beta hydroxylase (AAH), which the Company has an exclusive worldwide license from Rhode Island Hospital/Brown University.

AAH's utility as a drug target has been shown in published studies, which 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.

AAH's relevance as a biomarker for the early detection of cancer has also been established. 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. Studies on other cancers are currently underway.

Yeast Display Technology

The technology utilizes a yeast surface display method for engineering antibody fragments of extremely high affinity.

A recent publication on the technology appeared in the September 26, 2000 issue of Proceedings of the National Academy of Sciences (vol. 97, no. 20, pg. 10701-10705) entitled, "Directed evolution of antibody fragments with monovalent femtomolar antigen-binding affinity."

The paper reported the development of single-chain antibody mutants that possessed the highest monovalent ligand-binding affinity yet reported for an engineered protein by over two orders of magnitude. Accompanying the publication was a commentary (pg. 10679-10681) entitled, "Breaking the affinity ceiling for antibodies and T cell receptors."

The commentators concluded, "...escape from the in vivo affinity maturation ceiling may make possible an improved set of reagents for diagnosis and therapy."

"Currently, antibody drugs and use of antibodies in vivo involve several impediments and limitations, but the antibodies engineered through this breakthrough technology minimize or eliminate all of the problems associated with the use of native antibodies," stated Hossein A. Ghanbari, Ph.D., President and CEO of the Company. "The resulting molecule can be custom engineered to eliminate problems and facilitate research and product development. The Company is collaborating with world-class imaging groups at the University of Pennsylvania and in Cincinnati, Ohio and will be using its engineered antibodies to develop imaging procedures for the diagnosis of cancer at its earliest stage."

The Company has previously announced the commencement of pre-clinical studies on PAN-346, its lead drug candidate for the treatment of patients with newly diagnosed as well as recurring tumor for both glioblastoma multiforme and anaplastic astrocytoma, the two most fatal primary brain cancers. PAN-346 is an antisense-based drug targeted at inhibiting the expression of AAH.

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.

PAN-346 was recently featured in the January 5, 2001 issue of Signals Magazine, which can be found at www.SignalsMag.com. Signals Magazine is an online magazine of analysis for biotechnology executives.

The article, entitled, "Antisense: Poised to Strike," reviews the history of and state-of-the-art for antisense technology, its use as a therapeutic agent, and current leaders in developing this therapeutic approach.

"We have now set into action a multi-tiered approach to developing drugs for our cancer platform technology, namely the development of novel antibody drugs, traditional small molecules, and antisense oligonucleotides that treat disease at the gene," stated Kasra Ghanbari, Chief Operating Officer of the Company.

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.

More information is available at www.PanaceaPharma.com, a web site developed by eiCommunications.com, Inc. (www.eiCommunications.com), which offers written communications and web site promotion solutions for the Information Age.