DRAXIS Acquires Rights to Manufacture and Market I-125 Brachytherapy Seeds.

MISSISSAUGA, Ontario--(BUSINESS WIRE)--Oct. 13, 1999--

DRAXIS Health Inc. (TSE: DAX; NASDAQ: DRAX) announced today that its radiopharmaceutical subsidiary, DRAXIMAGE Inc., has signed an agreement with Isogenic Science Ltd. (Isogen) for the exclusive right to their proprietary technology related to brachytherapy seeds. The license entitles DRAXIMAGE to manufacture and market Iodine-125 brachytherapy seeds in North America.

Under the terms of the agreement, DRAXIMAGE will make an upfront payment to Isogen and also pay a royalty based on sales. In addition, DRAXIMAGE has been granted the option to license the I-125 seeds for certain other territories as well as rights to additional products developed by Isogen.

"This latest entry into therapeutic radio-oncology further complements DRAXIMAGE's existing line of products and leverages the capabilities of our recently commissioned radiopharmaceutical lab," stated Dr. Martin Barkin, DRAXIS Health's President and Chief Executive Officer.

Dr. Barkin continued, "We believe that the DRAXIMAGE seed offers important advantages over its competitors, including its specialized design which produces a nearly spherical dispersion field delivering uniform doses of radiation to the affected area a very desirable quality. DRAXIMAGE intends to negotiate the U.S. distribution rights for the I-125 seeds and, as a result, this initiative is expected to be accretive to earnings immediately following launch."

Brachytherapy seeds are used in the treatment of localized cancers, primarily prostate cancer, which is the second most common form of cancer and the second leading cause of cancer deaths in men. For 1999, the American Cancer Society estimates that there will be 179,300 new cases of prostate cancer diagnosed and an estimated 37,000 deaths associated with the disease. Based on industry data, the estimated cost in 1995 of all methods for treating prostate cancer exceeded $3 billion in the United States.

Brachytherapy involves the implantation of approximately 100 seeds, each containing a radioactive isotope, into a patient's prostate through specially designed needles guided by direct observation, ultrasound and/or fluoroscopy. The seeds destroy cancer cells by delivering a concentrated, yet confined dose of radiation. Brachytherapy is the fastest growing treatment for early stage prostate cancer and offers a number of advantages compared to alternative treatments including: rapid patient recovery, lower costs and reduced incidence of complications such as impotency and incontinence.

DRAXIMAGE will manufacture the I-125 seeds within its new state-of-the-art radiopharmaceutical lab in Kirkland, Quebec. Commercial production is expected to commence in 2000 following receipt of necessary regulatory approvals. Brachytherapy seeds are classified as medical devices in the U.S. and Canada, the approval time for which is generally much shorter than for pharmaceuticals.

Isogenic Science Ltd., founded by radiation scientist Dr. Robert Robertson, is a Canadian corporation involved principally in the research and development of brachytherapy sources.

DRAXIS Health Inc. is a diversified specialty pharmaceutical company operating in three niche markets: Radiopharmaceuticals (DRAXIMAGE), Canadian sales and marketing (DRAXIS Pharmaceutica) and Companion Animal Health (through its global alliance with Pfizer Inc.). DRAXIS supports its own as well as third party manufacturing requirements through its subsidiary, DRAXIS Pharma, located in Kirkland, Quebec.

Except for historical information, this news release contains certain forward-looking statements that involve risk and uncertainties, which may cause actual results to differ materially from the statements made. Such factors include, but are not limited to, changing market conditions, clinical trial results, the establishment of new corporate alliances, the impact of competitive products and pricing, the timely development, regulatory approval and market acceptance of the Company's products, and other risks detailed from time-to-time in the Company's filings with the US Securities and Exchange Commission and Canadian securities authorities.