KAI Reports Positive Preclinical Results for KAI-1678, First-in-Class Compound to Treat Pain

South San Francisco, CA – November 19, 2008 – KAI Pharmaceuticals, Inc., a privately held drug discovery and development company, today announced preclinical results demonstrating the effectiveness of KAI-1678 in reversing pain (hyperalgesia and allodynia) in multiple preclinical models. KAI-1678 also was shown to reverse pain more effectively than gabapentin, an industry-standard comparison in pain research. The preclinical results were presented in two posters at Neuroscience 2008, the 38th annual meeting of the Society for Neuroscience, taking place in Washington, DC from November 15 - 19. KAI-1678, a first-in-class, isozyme-selective, small peptide inhibitor of the epsilon protein kinase C pathway (epsilon PKC), is expected to enter Phase 2a clinical testing by the end of 2008.

Stephen D. Harrison, Ph.D., Senior Vice President, Research commented, “The findings being presented at this year’s Society for Neuroscience meeting provide additional validation for our program advancing the first isozyme-selective, epsilon PKC inhibitor in the clinic. The localization of epsilon PKC in pain receptor neurons made this a particularly interesting therapeutic target for the modulation of acute pain. Applying our expertise in PKC and in the delivery of peptides into the cell, we were able to create a promising clinical candidate against this target, which will soon progress into mid-stage trials in patients.”

An estimated 50 million people in the United States suffer from some form of persistent pain, while another 25 million suffer acute pain each year as a result of injury or surgery. According to a survey by the American Pain Society, four out of ten people suffering moderate to severe pain were unable to find adequate pain relief.

Additional information on the poster presentations at Neuroscience 2008:

Monday, Nov 17, 2008, 4.00pm
Session MM4, Inflammatory Pain II
Poster # 468.16
“KAI-1678, a Novel Inhibitor of Protein Kinase C Epsilon, Attenuates Mechanical Hyperalgesia in Rodent Models of Acute Nociceptive, Inflammatory and Post-Surgical Pain”

Wednesday, Nov 19, 2008, 9.00am
Session NN21, Neuropathic Pain Modulation II
Poster # 774.10
KAI-1678, a Novel Inhibitor of Protein Kinase C Epsilon, Attenuates Hyperalgesia and Allodynia in Three Neuropathic Pain Models in Rodents

About KAI-1678
KAI-1678 is an isozyme-selective, small peptide inhibitor of the epsilon protein kinase C pathway. Epsilon PKC is a well-validated target for both inflammatory and neuropathic pain in the preclinical, peer-reviewed literature. KAI’s approach is the first to enable the specificity of action required to make epsilon PKC inhibition a viable clinical approach. KAI-1678 has been shown to be highly effective at reducing pain responses in preclinical models of both neuropathic and inflammatory pain.

About KAI Pharmaceuticals
KAI Pharmaceuticals is a privately held, venture-backed drug discovery and development company with clinical-stage programs addressing significant and unmet patient needs in cardiovascular disease, metabolic bone disease and pain. The company has applied its core expertise in the biology of protein kinase C (PKC) to discover highly potent and selective inhibitors and activators for validated PKC isozymes. KAI is based in South San Francisco, California, and can be found online at www.kaipharma.com .