Net income for the nine months ended September 30, 2009 was C$33.3 million, or C$1.98 per fully diluted share, compared to C$7.7 million, or C$0.51 per fully diluted share, for the nine months ended September 30, 2008. Total revenues were C$80.4 million for the nine months ended September 30, 2009, an increase of 35%, compared to C$59.7 million for the prior-year period.

Jonathan Goodman, president and CEO of Paladin Labs, said: "This was a strong quarter for Paladin reflecting growth from both promoted brands and new acquisitions. Our diverse and highly profitable product portfolio, combined with our strong balance sheet, provides us the strength to continue to execute our business strategy."

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The call will also be audio-cast live and archived for 30 days at www.paladinlabs.com.

About Paladin Labs Inc.

Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Company's web site at www.paladinlabs.com.

This press release may contain forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the Company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the annual report as well as in the Company's Annual Information Form for the year ended December 31, 2008. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Company's ongoing quarterly fillings, annual report and Annual Information Form and other fillings found on SEDAR at www.sedar.com.

Contacts:
Paladin Labs Inc.
Samira Sakhia
Chief Financial Officer
514-669-5367
514-344-4675 (FAX)
info@paladinlabs.com
www.paladinlabs.com

SOURCE: Paladin Labs Inc.

mailto:info@paladinlabs.com
http://www.paladinlabs.com

To receive funding, Dr George showed in a two-page application how his idea falls outside current scientific paradigms and might lead to significant advances in global health.

Paladin Biosciences will use its proprietary Chimigen platform technology to produce a malaria vaccine that targets the parasite at various stages of the infection, and test the vaccine in the laboratory for immunogenicity.

The Chimigen platform technology is a dendritic cell receptor-targeted approach to produce highly immunogenic vaccine that induces both antibody and cell-mediated immune responses without the need for an adjuvant, the company said.

Dr George said: "We are honored to be selected for this Grand Challenges Explorations grant, and we look forward to applying our novel Chimigen platform technology to the development of a malaria vaccine that may one day make a real impact on global health. The Chimigen platform technology is currently being used by Paladin Biosciences to develop therapeutic agents for hepatitis B and C, alphavirus and influenza virus infections."

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Republication or redistribution, including by framing or similar means,
is expressly prohibited without prior written consent. Datamonitor shall 
not be liable for errors or delays in the content, or for any actions 
taken in reliance thereon

To receive funding, Dr. George showed in a two-page application how his idea falls outside current scientific paradigms and might lead to significant advances in global health. The initiative is highly competitive, receiving almost 3,000 proposals in this round.

Paladin Biosciences will use its proprietary Chimigen(R) Platform Technology to produce a malaria vaccine that targets the parasite at various stages of the infection, and test the vaccine in the laboratory for immunogenicity. The Chimigen(R) Platform Technology is a dendritic cell receptor-targeted approach to produce highly immunogenic vaccine that induces both antibody and cell-mediated immune responses without the need for an adjuvant.

"We are honored to be selected for this Grand Challenges Explorations grant, and we look forward to applying our novel Chimigen(R) Platform Technology to the development of a malaria vaccine that may one day make a real impact on global health," commented Dr. George. The Chimigen(R) Platform Technology is currently being used by Paladin Biosciences to develop therapeutic agents for hepatitis B and C, alphavirus and influenza virus infections.

"The winners of these grants show the bold thinking we need to tackle some of the world's greatest health challenges," said Dr. Tachi Yamada, president of the Gates Foundation's Global Health Program (http://www.gatesfoundation.org/global-health/Pages/overview.aspx). "I'm excited about their ideas and look forward to seeing some of these exploratory projects turn into life-saving breakthroughs."

About Grand Challenges Explorations

Grand Challenges Explorations is a five-year, $100 million initiative of the Gates Foundation to promote innovation in global health. The program uses an agile, streamlined grant process - applications are limited to two pages, and preliminary data are not required. Proposals are reviewed and selected by a committee of foundation staff and external experts, and grant decisions are made within approximately three months of the close of the funding round.

Applications for the current round of Grand Challenges Explorations are being accepted through November 2, 2009. Grant application instructions, including the list of topics for which proposals are currently being accepted, are available at http://www.grandchallenges.org/explorations.

About Paladin Labs Inc.

Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian market. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Company's web site at www.paladinlabs.com.

This press release may contain forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the Company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the annual report as well as in the Company's Annual Information Form for the year ended December 31, 2008. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Company's ongoing quarterly fillings, annual report and Annual Information Form and other fillings found on SEDAR at www.sedar.com.

SOURCE: Paladin Labs Inc.

Paladin Labs Inc.
Samira Sakhia
Chief Financial Officer
514-669-5367
514-344-4675 (FAX)
info@paladinlabs.com
www.paladinlabs.com