Nuvelo Announces Publication of Preclinical Data From Wnt Therapeutics Program

Friday, June 6, 2008 General News
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SAN CARLOS, Calif., June 5 Nuvelo, Inc.(Nasdaq: NUVO) today announced the publication of preclinical data from thecompany's Wnt Therapeutics program showing that the R-spondin family ofproteins activate the Wnt pathway, a signaling pathway that is critical forcell growth and differentiation during homeostasis and pathogenesis. TheR-spondin proteins also amplified the activity of Wnt proteins, and modulatedthe Wnt pathway by a common mechanism. The study, entitled "R-spondin FamilyMembers Regulate the Wnt Pathway by a Common Mechanism," is published in theJune issue of Molecular Biology of the Cell (MBC).

"This study reinforces the therapeutic potential of our R-spondin familyof proteins in our Wnt therapeutics program, which target a range ofindications where cell regeneration and differentiation are important todisease processes, including gastrointestinal disease, bone disorders andwound healing," said Dr. Ted W. Love, chairman and chief executive officer ofNuvelo. "We are on track to begin two Phase 1 trials with NU206, the leadcandidate in our Wnt Therapeutics program, in the second and third quarters ofthis year. We are also continuing to assess the therapeutic potential of othersecreted proteins in the R-spondin family."

About R-spondin secreted proteins

The R-spondin (Rspo) family of secreted proteins are the first biologicagents that can be used to enhance endogenous Wnt signaling in vivo, andprovide therapeutic potential in diseases that are dependent on the Wntpathway for maintenance of tissue integrity and tissue repair. Rspo proteinsare novel regulators of the Wnt pathway and were first identified by Nuvelo aspotent gastrointestinal mitogens in transgenic mice (1).

About Nuvelo

Nuvelo, Inc. is dedicated to improving the lives of patients through thediscovery, development and commercialization of novel drugs for acutecardiovascular disease, cancer and other debilitating medical conditions.Nuvelo's development pipeline includes NU172, a direct thrombin inhibitor inPhase 1 development for use as a potential short-acting anticoagulant duringmedical or surgical procedures; and preclinical candidate NU206, a Wnt pathwaymodulator for the potential treatment of chemotherapy/radiationtherapy-induced mucositis and inflammatory bowel disease. In addition, Nuvelois pursuing research programs in leukemia and lymphoma therapeutic antibodiesand Wnt signaling pathway therapeutics to further expand its pipeline andcreate additional partnering and licensing opportunities.

Information about Nuvelo is available at our website at or by phoning 650-517-8000.

This press release contains "forward-looking statements," which includestatements regarding the timing, progress and anticipated completion ofNuvelo's clinical stage and research programs, the anticipated availability oftop-line data, and the potential benefits that patients may experience fromthe use of our clinical stage compounds, which statements are herebyidentified as "forward-looking statements" for purposes of the safe harborprovided by the Private Securities Litigation Reform Act of 1995. Suchstatements are based on our management's current expectations and involverisks and uncertainties. Actual results and performance could differmaterially from those projected in the forward- looking statements as a resultof many factors, including, without limitation, uncertainties relating to drugdiscovery and the regulatory approval process; clinical development processes;enrollment rates for patients in our clinical trials; changes in relationshipswith strategic partners and dependence upon strategic partners for theperformance of critical activities under collaborative agreements; and theimpact of competitive products and technological changes. These and otherfactors are identified and described in more detail in Nuvelo's filings withthe SEC, in

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