Panacea Pharmaceuticals Announces Appointment of Suzanne Sensabaugh as Vice President, Regulatory Affairs

August 5, 2008 - Gaithersburg, Maryland - Panacea Pharmaceuticals, Inc. today announced the appointment of Suzanne Sensabaugh as Vice President, Regulatory Affairs. Ms. Sensabaugh will assume responsibility for formulating strategies and managing all U.S. and foreign regulatory filings for the Company's therapeutic and diagnostic products. This role is of critical importance as the Company prepares to file applications with the U.S. Food and Drug Administration for approval of its prostate and lung cancer diagnostic tests, and to begin clinical trials of its cancer and neuroprotectant therapeutic products within the next 12 months.

"We are very pleased to welcome Suzanne to the team at Panacea", commented Hossein Ghanbari, Ph.D., Chairman, CEO and Chief Scientific Officer at Panacea Pharmaceuticals. "Suzanne brings a breadth of regulatory experience related to therapeutic products and particularly monoclonal antibodies, in industry and with the FDA. Her experience is particularly important as we progress PAN-622, our lead cancer therapeutic which is an all-human sequence monoclonal antibody, toward Phase I clinical trials in early 2009."

Just prior to joining Panacea, Ms. Sensabaugh held the position of Vice President, Biopharmaceutical Development, MDS Pharma Services, where she was responsible for managing and directing the consulting group in Development & Regulatory Services and providing professional guidance to clients. She has more than 10 years of experience with the Center for Biologics Evaluation and Research (CBER) within the U.S. Food and Drug Administration as a researcher, product reviewer, and inspector for biologics. She also was involved in the development and implementation of SOPs, guidance, regulations, and laws. Ms. Sensabaugh began her industry career as Associate Director, Regulatory Affairs, at Genzyme Corporation where she directed, planned, and implemented global regulatory activities. She has held senior positions as Vice President, Regulatory Affairs & Quality, at SICOR Inc., Biotechnology Division, where she was responsible for global regulatory affairs, quality assurance and control, and Vice President, Regulatory Affairs, and Senior Director for Global Biogenerics, at Teva Pharmaceutical Industries Ltd., where she developed regulatory strategy and submissions for biotechnology products. Ms. Sensabaugh received her MBA from Duke University, MS in Biotechnology from Johns Hopkins University, and BS in Zoology from the University of Maryland. She teaches clinical development of drugs and biologics at Johns Hopkins University.

"I am excited to add Suzanne to our team. Her expertise and experience will be critically important as we move toward clinical development of our cancer and CNS therapeutic products," commented Stephen N. Keith, MD, MSPH, President and Chief Operating Officer. "We will continue to strengthen our management team, looking to add scientific and managerial staff with experience in biotechnology and pharmaceuticals. I am confident that Suzanne will play an important role in facilitating the success of our therapeutic and diagnostic products."

About PanaceaÕs Oncology Platform In addition to the cancer therapeutic PAN-622, Panacea offers: PC Detect™, a diagnostic test used in conjunction with PSA and digital rectal exam to identify patients with prostate cancer; LC Detect® , a diagnostic test to aide in the detection of patients with lung cancer; BC Detect®, a diagnostic test to aide in the detection of recurrence of breast cancer; CC Detect®, a diagnostic test to aide in the detection of colo-rectal cancer; and TK Sense®, which determines whether white blood cells from patients with chronic myelogenous leukemia (CML) are sensitive or resistant to imatinib, the therapy of first choice for CML patients, prior to initiation of therapy. Each of these tests is offered as a laboratory service performed by Panacea Laboratories (www.panacea-labs.com), a division of Panacea Pharmaceuticals, Inc.

About Panacea Pharmaceuticals, Inc.
Panacea Pharmaceuticals, Inc. is a privately-held biopharmaceutical company focused on the development and commercialization of therapeutics and diagnostics for diseases with substantial, unmet clinical needs. The CompanyÕs product development strategy is based on novel therapeutic agents and approaches for cancer treatment, as well as acute and chronic neurodegenerative conditions, such as hypoxia-induced neurological insult, ParkinsonÕs Disease, and AlzheimerÕs Disease. Panacea has an extensive patent portfolio covering its neurodegenerative and oncology technologies. Panacea Laboratories is a division of Panacea Pharmaceuticals, Inc.

Additional information about the Company is available at www.PanaceaPharma.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.

Contact:
Panacea Pharmaceuticals, Inc.
Stephen N. Keith, MD, MSPH
President & COO
Phone 240-243-8000; FAX 240-4650
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