(“Paladin”) (TSE:PLB) announced today that its corporate partner, Connetics Corporation (NASDAQ:CNCT), has submitted an Investigational New Drug application (IND) in the United States for a Phase II clinical trial to investigate ConXn^® (recombinant human relaxin) in the treatment of peripheral vascular disease (PVD). The trial will also examine the product’s effect in treating kidney and cardiovascular disease, which are often present in PVD patients. Paladin has the exclusive Canadian license for ConXn^® for all current and future indications.

Jonathan Goodman, President and CEO of Paladin stated, “We are very encouraged by the commitment and progress Connetics has made with ConXn^®. The therapeutic prospects for this product are far-reaching and represent a tremendous potential in Paladin’s portfolio of specialty pharmaceuticals.”

PVD afflicts more than 750,000 people in North America and is characterized as restricting blood flow causing ischemia (lack of oxygen) in the extremities. Frequently, the vascular disease in PVD patients extends to other bodily areas such that there is also insufficient blood flow to vital organs such as the kidney and heart. The Connetics’ study is anticipated to show ConXn^®’s effects in kidney and cardiovascular disease as well as PVD.

Paladin initially licensed ConXn^® in August of 1999 for the first treatment of scleroderma, a devastating and progressive disease for which there is no current available therapy. The product is in late stages of a Phase III study for this indication and results are expected before the end of 2000.

About Paladin Labs Inc.
Paladin Labs, headquartered in Montreal, Quebec is a Canadian developer, marketer and distributor of innovative pharmaceuticals, currently offering products in urology, dermatology, rheumatology and other specialty markets. For more information about Paladin, please visit the Paladin Web Site at www.paladin-labs.com or send e-mail to info@paladin-labs.com.

Paladin Labs Inc. is a public company whose shares trade on the Toronto Stock Exchange and the Canadian Venture Exchange under the symbol PLB.

For Information about Paladin Labs Inc.:

 

Lennie Ryer, CA, CFE	Jason Hogan
Chief Financial Officer	Investor Relations
Paladin Labs Inc.	The Equicom Group Inc.
514-340-5067	416-815-0700 ext. 222
Fax:514-344-4675	Fax:416-815-0080
Email:lryer@paladin-labs.com	Email:jhogan@equicomgroup.com
Internet: www.paladin-labs.com	Internet: www.equicomgroup.com

PALADIN LABS INC.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements or predictions. These statements represent our judgement as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements. Potential risks and uncertainties include, without limitation, those associated with product development, clinical trials, future revenues and profitability, and obtaining marketing approval