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Paradigm Genetics (PDGM) And EPL Announce Collaboration To Further Develop Paradigm Genetics Automated Pathology Software

10/19/2005 5:08:48 PM

RESEARCH TRIANGLE PARK, N.C., June 22 /PRNewswire-FirstCall/ -- Paradigm Genetics, Inc. , a biotechnology company, and Experimental Pathology Laboratories Inc. (EPL), announced today they have entered into a collaboration to further the development of Paradigm Genetics' automated pathology software.

As one of its key business offerings, Paradigm Genetics specializes in the development and application of automated pathology software for the objective mathematical quantification of tissue changes in disease and toxicology and the automated screening of tissue slide normality. Paradigm Genetics uses its automated pathology software as a core component in its systems biology approach to discover and validate novel biomarkers and drug targets.

EPL is one of the industry's leading providers of veterinary pathology expertise. As the largest subcontractor of veterinary pathology services to the National Institute of Environmental Health Sciences (NIEHS) and the Environment Protection Agency (EPA), EPL processes over 350,000 tissue slides each year. EPL is an extensive participant in the National Toxicology Program's (NTP) Pathology Peer Review process and manages the nation's NTP Tissue Archives.

"We are very pleased to collaborate with Paradigm Genetics on the continued development of its automated pathology software which we believe is the very best technology in the industry," said Jerry Hardisty, DVM, President and CEO of EPL and past president of the Society of Toxicologic Pathologists. "Results from two recent retrospective evaluations of NTP subchronic bioassays of rat livers performed by the NIEHS, EPL and Paradigm Genetics demonstrated that Paradigm Genetics' automated pathology software could provide valuable and objective quantitative data that could enhance detection of changes between normal and diseased tissue and differentiate among treatment groups."

As part of this collaboration, EPL will provide Paradigm Genetics with daily veterinary pathology expertise and guidance into the continued design, development and implementation of Paradigm Genetics' automated pathology software for the pharmaceutical industry. EPL will also serve as the major point of contact for Paradigm Genetics clients on all veterinary pathology related topics. As part of this agreement, Paradigm Genetics' automated pathology software will be installed at EPL, and EPL will serve as Paradigm Genetics' primary reference site for ongoing software evaluation, development and testing. A broader collaboration related to automated pathology software validation is currently under discussion between the companies.

"We sincerely welcome this opportunity to be a collaborative partner with EPL, Jerry Hardisty and his entire team of toxicologic pathologists. This collaboration combines the pioneers of automated pathology software with some of the most experienced and respected toxicologic pathologists in the industry. It also provides important momentum for the continued development and sale of our automated pathology software," said Tom Colatsky, Ph.D., Vice President, Healthcare Research, Paradigm Genetics.

Typical safety trials in drug discovery and development involve the microscopic subjective review by a pathologist of thousands of tissue slides. Paradigm Genetics' automated pathology software enables automated screening of tissue slides into groups of normal and non-normal thereby enabling objective high throughput analysis. In addition, this novel tissue data represents the phenotypic expression of tissue in response to disease, toxicity or dosing regimens, and provides more definitive data to assist the veterinary pathologist in drawing a conclusive diagnosis. The data may also be correlated with gene expression and biochemical profiling to enable discovery of novel biomarkers and genes. Paradigm Genetics has previously announced an automated pathology software contract with L'Oreal, the world's largest skin care company, in which the technology will be used to ensure that engineered tissue is within acceptable limits of normality.

About Paradigm Genetics

Paradigm Genetics is a biotechnology company applying its proprietary systems biology platform to the discovery of safer, more effective drugs and agrichemicals. Paradigm Genetics has major collaborations with the National Institute of Environmental Health Sciences, Bayer CropScience, the Monsanto Company, Pioneer Hi-Bred International, the National Institute of Standards & Technology's Advanced Technology Program, and L'Oreal Inc. For more information, visit .

This press release contains forward-looking statements, including statements regarding the Company's expectations for using its systems biology platform to discover safer, more effective drugs and agrichemicals as well as statements regarding the use of its automated pathology software as an accurate, sensitive and important tool for identifying biomarkers. Such forward-looking statements are based on management's current expectations and are subject to a number of risks, factors and uncertainties that may cause actual results, events and performance to differ materially from those referred to in the forward-looking statements. These risks, factors and uncertainties include, but are not limited to, Paradigm's early stage of development, history of net losses, technological and product development uncertainties, reliance on research collaborations, uncertainty of additional funding and ability to protect its patents and proprietary rights. Certain of these and other risks are identified in Paradigm's annual report on Form 10-K for the year ended December 31, 2003 and in its quarterly report on Form 10-Q for the quarter ended March 31, 2004, each filed with the Securities and Exchange Commission. The Company does not intend to update any of the forward- looking statements after the date of this release to conform these statements to actual results or to changes in our expectations, except as may be required by law.

Paradigm Genetics, Inc.

CONTACT: Brian Ritchie or Mark Vincent of EURO RSCG Life NRP,+1-212-845-4200

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