DRAXIS Files for Canadian Regulatory Approval for Brachytherapy Seeds.

Business Editors

MISSISSAUGA, Ontario--(BUSINESS WIRE)--March 23, 2000

(NASDAQ:DRAX) (TSE:DAX.) DRAXIS Health Inc. (TSE: DAX; NASDAQ: DRAX) today announced that its radiopharmaceutical subsidiary, DRAXIMAGE Inc., has filed with Canadian regulators for the approval to market its Iodine-125 brachytherapy seed product, BrachySeed(R).

Dr. Martin Barkin, President and CEO of DRAXIS Health stated, "We are pleased that once approved by the respective regulators, our BrachySeed(R) product will be available to service the growing Canadian and US marketplaces. Prostate cancer is a serious medical condition, with almost 180,000 new cases diagnosed in the United States in 1999, as estimated by the American Cancer Society."

Dr. Barkin continued, "DRAXIMAGE's brachytherapy seeds are second generation devices which have been optimized for dosage uniformity and safety. This latest entry into therapeutic radio-oncology complements our core competencies in diagnostic imaging and leverages the capabilities of our new radiopharmaceutical laboratory."

Brachytherapy seeds are used in the treatment of localized cancers, primarily prostate cancer, the second most common form of cancer and the second leading cause of cancer deaths in men. While brachytherapy has been available since the 1970's, it has only started to gain prominence and greater acceptance within recent years, coinciding with the development of advanced technologies to aid seed placement. 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.

The continued growth and acceptance of brachytherapy as a preferred treatment choice for prostate cancer is due, in part, to peer-reviewed publications of large scale clinical trials which have demonstrated excellent efficacy and safety. Ragde et al. reported in 1998 on the high 10 year disease-free survival for patients treated with Iodine-125. In 1999 Peschel et al. described the low level of adverse events for patients treated with both Iodine-125 and Palladium-103.

DRAXIMAGE, based in Kirkland Quebec, is Canada's leading manufacturer of radiopharmaceuticals for use in Nuclear Medicine, and its products are available in many countries around the world. It markets radioactive products dispensed as ready-to-use sterile parenterals, and non-radioactive lyophilized kits intended for use with Technetium-99m. Fibrimage(r), the Company's diagnostic agent for deep vein thrombosis is now in Phase III clinical trials in Canada.

DRAXIS Health Inc. is a diversified speciality 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