Paladin Labs Inc.
TSX : PLB

Paladin Labs Inc.

May 26, 2006 16:00 ET

Paladin Labs Inc.: Health Canada Requires Additional Information for GlucaGen'R' Approval

MONTREAL, CANADA--(CCNMatthews - May 26, 2006) - Paladin Labs Inc. (TSX:PLB), a leading Canadian specialty pharmaceutical company, announced today that its partner, Novo Nordisk Canada Inc., has been advised by the Biologics and Genetic Therapies Directorate (BGTD) of Health Canada, that its application for GlucaGen® (recombinant glucagon for injection) has received a Notice of Deficiency. It is expected that Health Canada's issues will be responded to within the prescribed 90-day window.

Paladin signed a distribution agreement for GlucaGen® with Novo Nordisk Canada Inc., a subsidiary of Novo Nordisk A/S (NYSE:NVO) in September 2002. GlucaGen® is indicated for emergency treatment of severe hypoglycemia in diabetic patients being treated with insulin, and is the market leader in Europe. "We expect to address BGTD's issues over the next 90 days. Currently there is only one source of recombinant glucagon in Canada, a vital product for diabetics. Patients will be well served in having another safe and efficacious choice," said Jonathan Ross Goodman, President & CEO of Paladin.

About GlucaGen®

GlucaGen® is chemically identical to human glucagon, a naturally occurring peptide that selectively converts liver glycogen to glucose, relaxes smooth muscle, and increases the strength of cardiac contractions. GlucaGen® is indicated for emergency treatment of severe hypoglycemia in diabetic patients using insulin, and for relaxation of the gastrointestinal tract during routine radiology procedures. GlucaGen® rapidly restores blood glucose levels in the unconscious patient to allow them to regain consciousness and permit administration of other sources of glucose.

About Paladin Labs Inc.

Paladin Labs Inc., headquartered in Montreal, Canada, is a leading specialty pharmaceutical company focused on developing, acquiring or in-licensing innovative pharmaceutical products for the Canadian market. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Paladin Web Site at www.paladinlabs.com.

This news release may contain forward-looking statements or predictions. These statements represent our judgment 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 and other factors that are discussed in the Management Discussion published in the Company's annual reports and Annual Information Form and other filings found on SEDAR at www.sedar.com.

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