Panacea Pharmaceuticals Appoints Pamela Harris, MD, Vice President Medical and Clinical Affairs

January 10, 2007 - Gaithersburg, Maryland - Panacea Pharmaceuticals, Inc. announced the appointment of Pamela Harris, MD, as Vice President Medical and Clinical Affairs. Dr. Harris will lead the design and conduct of clinical trials for the Company's therapeutic and diagnostic products for cancer and diseases of the central nervous system, and provide information to physicians and other health care providers on these diseases, and their diagnosis and treatment.

Dr. Harris has broad experience with the design and conduct of early- and late-stage clinical trials involving products intended for a range of diseases and conditions, including cancer and HIV infection. Most recently, Dr. Harris was the Chief Medical Officer at Callisto Pharmaceuticals, where she was responsible for the development of two antineoplastic drugs. Prior to this position, she served as a Team Leader and Senior Medical Director at Pfizer, Director of Clinical Research at Wyeth Pharmaceuticals, and Director of Clinical Research at U.S. Bioscience. In addition, Dr. Harris has served as a consultant to Nabi Pharmaceuticals and Hoffman La-Roche. Dr. Harris received her M.D. degree from Ohio State University, and completed a residency in internal medicine at the Washington Hospital Center in Washington DC. She did research fellowship work at the Sloan Kettering Institute for Cancer Research, Georgetown University Medical Center, and Jackson Memorial Hospital in Miami, FL. Dr. Harris also completed a hematology and oncology clinical fellowship at the George Washington University Hospital in Washington DC. Dr. Harris is board certified in internal medicine and medical oncology, and has authored more than 25 peer-reviewed publications.

"Panacea will soon initiate clinical trials for its first therapeutics to treat cancer and stroke. We have introduced our first cancer diagnostic product to predict sensitivity to imatinib (Gleevec¨) in patients with Chronic Myelogenous Leukemia, and will soon introduce our second diagnostic test to aid in the screening for prostate cancer. Dr. Harris will expedite the development of all of these products," noted Stephen Keith, MD, MSPH, President and Chief Operating Officer. "Dr. Harris brings a wealth of experience in clinical trials and medical affairs, having worked at both large pharmaceutical companies and smaller biotech companies. She is a welcome addition to our team."

About Panacea's Oncology Platform
Panacea is pursuing the development of antibodies directed against Human aspartyl (asparaginyl) Beta-hydroxylase (HAAH) as novel agents for the treatment of cancer with liver cancer as its first intended indication. The Company is exploring both naked anti-HAAH antibodies as well as HAAH antibodies conjugated to chemotherapeutic agents. Panacea is also pursuing the development of diagnostic products based on HAAH gene expression and anti-HAAH antibodies. A test to determine responsiveness to a current therapy of choice in patients with chronic myelogenous leukemia utilizing HAAH gene expression is available through Panacea Laboratories. A proprietary blood-based assay has shown high sensitivity and specificity in the detection of a range of cancers, thus facilitating the diagnosis and therapeutic management of disease. Initial targets for the blood-based diagnostic products include prostate and liver cancers.

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 Company's 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, Parkinson's Disease, and Alzheimer's Disease. Panacea has an extensive patent portfolio covering its neurodegenerative and oncology technologies.

More information about the Company is available at http://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 240-465-0450 

skeith@panaceapharma.com