The doctors have not yet found the cause of the disease. However, they say that it advances quickly to the renal system and causes neurological damage.
"These symptoms are completely unusual and have not been detected before in our country," Panama's health director, Cirilo Lawson, said.
Another 10 people have been affected but are alive.
Samples from the affected people in the central Panama and Cocle provinces are being taken and opinion is being sought from other countries.