Axcan Pharma Reports Its Second Quarter Results; (Part 1 of 2 - Financial Tables To Follow).

MONTREAL--(BUSINESS WIRE)--May 27, 1998--(ME:AXP.) (TSE:AXP.) Axcan Pharma announced today that for the second quarter ended March 31, 1998, revenues amounted to $9,147,000 compared to $4,780,000 for the same period in the previous fiscal year. Second quarter sales more than doubled to $8,995,000 compared to $4,437,000 for the same period last year. For the first six months of fiscal 1998, sales were $19,017,000 compared to $8,407,000 for the same period last year. This increase is mainly due to the performance of VIOKASE(R) in the US market as well as the Canadian gastroenterology products which were acquired in September 1997. These products also contributed to the improvement in the cost of goods sold as a percentage of sales.

Expenses associated with the presence of the Company on the US market have resulted in an increase in selling and administration expenses. In addition, selling and administration expenses include the Company's share of Axcan Schwarz LLC's expenses which amounts to $601,000 for this quarter and $1,475,000 for the first six months of fiscal 1998. As of March 31, 1998, Axcan Schwarz LLC had no revenue. Results for the corresponding periods of last year did not include any expenses from Axcan Schwarz LLC.

The Company recorded net earnings of $230,000, or $0.02 per share for the second quarter of fiscal 1998, compared to a net loss of $233,000, or $0.02 per share, for the quarter ended March 31, 1997. For the first six months of fiscal 1998, the Company has net earnings of $1,057,000 or $0.07 per share compared to a net loss of $594,000 or $0,05 per share for the same period last year.

"The second quarter of fiscal 1998 was very active as the Company completed its preparation for the URSO(R) launch in the United States," commented Mr. Leon F. Gosselin, Axcan's President & CEO. "Axcan was able to maintain its operations during the Ice Storm that hit our area in January thanks to the devotion and professionalism of its employees," he added. URSO(R)

Axcan Schwarz LLC, Axcan's joint venture with Schwarz Pharma US has now launched URSO(R) in the United States. A national sales meeting was held at the end of March to prepare the Schwarz sales force to effectively promote URSO(R) to gastroenterologists and other key physicians.

Ice storm

Axcan Pharma is located in Mont-Saint-Hilaire, right in the center of what became known as the "dark triangle", the area which was most affected by the ice storm that struck the southern part of Quebec in January 1998. The Company was without hydro power for three weeks during the storm. Thanks to the dedication of its employees, most of whom were themselves affected at home, Axcan closed down for only one day and continued operating during this difficult period. Axcan would like to thank its employees, suppliers and clients for their patience, understanding and support.

Axcan Pharma is a Canadian pharmaceutical company involved in the development and distribution of pharmaceutical products, mainly in the field of gastroenterology. Axcan is one of the ten largest publicly traded health-care companies in Canada and is listed on the Montreal and Toronto Stock Exchanges under the AXP symbol.

CONTACT: Axcan Pharma Inc.

Bertrand Bolduc, 514/467-5138

514/464-9979 (FAX)

http://www.axcan.com

[e-mail]

or

Axcan Pharma Inc.

Isabelle Adjahi, 514/467-5138

514/464-9979 (FAX)

http://www.axcan.com

[e-mail]