09.28.2006

PharmaGap announces commencement of pharmacology studies
for clinical trial submissions

Ottawa, Ontario/September 28, 2006 – PharmaGap Inc. (TSX-V: GAP) (“PharmaGap” or “the Company”) announced today a collaboration with Dr. Michael Adams, Professor of Pharmacology and Toxicology at Queen’s University in Kingston, Ontario. Dr. Adams has extensive international experience in the development of new therapeutic drugs, and brings to PharmaGap critical expertise as well as expanded  animal testing capacity and capabilities.

Dr. Adams said: “I am excited to be collaborating with PharmaGap to determine the pharmacological potential of this very interesting and novel drug compound for use in treating cancer.  In my lab we have had a long history of seeking out and testing innovative compounds that have a strong potential for success as new therapeutic agents and to that end, we were very pleased to be asked to study this unique compound.”  

The work to be undertaken by Dr. Adams will be focused on the pharmacological aspects of the Company’s lead drug PhGalpha1, a key step in defining the final medicinal form and dosage levels of the drug required to produce therapeutic effect in humans. This final form of PhGalpha1 will be the subject of applications to proceed with clinical trials of the compound in humans.  PhGalpha1 is a novel, first-in-class drug compound that selectively targets and inhibits PKCalpha, a well validated therapeutic target known to be overly-expressed in many types of cancer.

Dr. Adams will also be assisting and directing Company personnel in surgical techniques required to undertake advanced in vivo studies aimed at producing additional data required for clinical trial submissions.

The initial studies to be carried out by Dr. Adams will provide data required in understanding the pharmacokinetic (i.e. the distribution and longevity of the drug in the body) and pharmacodynamic (i.e. the biochemical and physiological effect of the drug on the body) aspects of PhGalpha1.

This work builds on the successful design, formulation and testing of PhGalpha1 by the Company over the past four years. PharmaGap scientists have demonstrated the efficacy of the compound in human cancer cell lines in early stage bench tests (“in vitro”), in tumours grown on mice (“in vivo”), and as announced last week, using a clinically accepted route of drug administration in treating tumours established inside mouse subjects (“systemic in vivo”). In these most recent tests, the Company was successful in demonstrating that PhGalpha1 has the ability to survive in an animal test subject, reach the previously established tumour, and demonstrate the desired effect on the cancerous cells within that tumour.

Robert McInnis, President and C.E.O., observed that: “We are very pleased that Dr. Adams, along with our other external advisors and collaborators, each an expert in their field, has recognized the potential in our lead drug compound PhGalpha1 and has agreed to work with us in getting the drug into the clinical trial phase in humans as quickly as possible. It is our intention to continue to augment our internal capabilities with collaborations such as this one, in order to progress at a more rapid and effective pace than otherwise possible”.

Dr. Michael Adams, currently a Full Professor in the Department of Pharmacology and Toxicology, has cross-appointments in the Department of Urology and the School of Kinesiology and Health Studies.  He has had extensive involvement in research focused on the development of new therapeutic strategies in the prevention and treatment of cardiovascular diseases, sexual dysfunction, and cancer.  Dr. Adams has published more than 100 scientific papers and chapters and has nearly 30 issued patents worldwide, and 77 patent applications filed.  He has previously received the Basmajian Award for Excellence in Medical Research at Queen's University (1994), the Young Investigator Award of the Canadian Hypertension Society (1997) and the Education Award, Faculty of Health Sciences, Queen’s University (1998).  He was previously a Heart & Stroke Foundation Senior Research Scholar (1988-1993) and held a Career Award in Medicine from the Medical Research Council-Health Research Foundation/PMAC (1992-07). 

About PharmaGap Inc.
PharmaGap Inc. (TSX-V: GAP), based in Ottawa, ON, is a biotechnology company with a core focus on developing novel therapeutic compounds for the treatment of cancer. PharmaGap's research platform targets cellular signalling pathways controlled by Protein Kinase C (PKC) isoforms. PharmaGap's lead drug compound, PhGalpha1, is in preclinical development and targets PKC alpha. The Company has a pipeline of compounds in the design stage which are selective inhibitors of other isoforms of PKC. The Company's strategy is to out-license drug compounds to larger life sciences companies at the preclinical stage. For more information on PharmaGap please visit the Company's website at www.pharmagap.com.

For information relating to this Release, please contact:
Robert McInnis, President & CEO
(613) 990-9551
bmcinnis@pharmagap.com

Note: The TSX-Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.  No Securities Commission or other regulatory authority having jurisdiction over PharmaGap has approved or disapproved of the information contained herein.  This release contains forward looking statements that may not occur or may change materially.