DRAXIS Completes Acquisition of Radiopharmaceutical Division of Merck Frosst DRAXIMAGE Becomes Fourth Pharmaceutical Business Unit.

MISSISSAUGA, ONTARIO--(BUSINESS WIRE)--Sept. 12, 1997-- Draxis Health Inc.(TSE DAX., NASDAQ DRAXF.)--DRAXIS Health Inc. (TSE-DAX; NASDAQ-DRAXF) announced today that it has completed the previously announced acquisition of the radiopharmaceutical division of Merck Frosst Canada Inc. and the Division will immediately commence operations under the name DRAXIMAGE.

DRAXIMAGE, formerly Frosst Radiopharmaceuticals, is profitable with annualized revenues of $6.0 million, approximately half of which are from exports. Revenues are derived from the sale of two types of pharmaceuticals: radioactive products with relatively short half-lives which are sold in a ready-to-use form, and non-radioactive kits sold in a lyophilized, or freeze-dried form, which are reconstituted and labeled with a radioactive element in nuclear medicine diagnostic centers prior to use. The radioactive products are used for the treatment and diagnosis of thyroid gland disorders, and kidney and lung function. Kit products are used in the diagnosis of inflammatory and neoplastic bone disease and kidney and lung ventilation studies.

Merck Frosst is based in Kirkland, Quebec and is Canada's leading research-based pharmaceutical company. The company markets an extensive line of cardiovascular products for high blood pressure, elevated cholesterol and heart failure as well as a broad range of vaccines. Merck Frosst's products are also recognized in the treatment of osteoporosis, HIV/AIDS, glaucoma, prostate disease and other diseases.

DRAXIS Health Inc. is an emerging Canadian pharmaceutical company with four operating business units. The Veterinary Pharmaceutical Unit, through its wholly-owned, US subsidiary, Deprenyl Animal Health Inc., researches, develops, markets and sells prescription pharmaceuticals for companion animals. The Dermatology Pharmaceutical Unit researches, markets and sells prescription and non-prescription dermatologicals, including podiatrics. In Canada it markets four prescription and 15 non-prescription products, and in the US it has one prescription and markets and sells two non-prescription products. The Canadian Pharmaceutical Marketing Unit markets and sells prescription pharmaceuticals in Canada. The Radiopharmaceutical Unit, through its wholly-owned subsidiary, DRAXIMAGE Inc., will be engaged in the research, development, manufacture, marketing and sale of radiopharmaceuticals for medical diagnostic and therapeutic purposes.

Except for historical information, this news release as it pertains to DRAXIS business 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 DRAXIS' products, and other risks detailed from time-to-time in DRAXIS' filings with the US Securities and Exchange Commission and Canadian securities authorities.

CONTACT: Draxis Health Inc.

Kendall McAlister, 905/ 677-5500 ext. 248

905/ 677-5502 (FAX)

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