DRAXIS Receives US$13 Million in Milestones from Pfizer.

MISSISSAUGA, ONTARIO--(BUSINESS WIRE)--Jan. 6, 1999-- (NASDAQ:DRAXF) (TSE:DAX.) DRAXIS Health Inc. today announced that it has received from Pfizer Inc. milestone payments aggregating US$13 million.

In December 1997, DRAXIS entered into a worldwide comprehensive alliance with Pfizer Inc. with respect to Anipryl(r). Under the terms of the alliance, DRAXIS licensed the right to market, sell and distribute Anipryl(r) globally to Pfizer Animal Health. DRAXIS also supplies the manufactured product to Pfizer. Pursuant to this agreement, the receipt of FDA clearance of Anipryl(r) for the control of clinical signs associated with canine cognitive dysfunction syndrome (CDS) on December 11, 1998, entitled DRAXIS to receive a US$10 million milestone payment from Pfizer and the receipt of clearance of Anipryl(r) from the National Registration Authority (NRA) in Australia for the control of clinical signs associated with canine CDS and Cushing's disease on December 14, 1998, entitled DRAXIS to receive a US$3 million milestone payment from Pfizer. Both payments were received on January 6, 1999.

Anipryl(r) is already marketed in the United States for the control of clinical signs of canine Cushing's disease and in Canada for the control of clinical signs of both canine Cushing's disease and CDS. Based on these recent approvals, Pfizer will now also be able to market Anipryl(r) in the United States for canine CDS and in Australia for canine CDS and Cushing's disease.

Dr. Martin Barkin, President and CEO of DRAXIS stated: "We are pleased with the way the implementation of our agreements with Pfizer is progressing. DRAXIS will now receive royalties from sales for both indications in three jurisdictions - the U.S., Canada and Australia."

CDS, sometimes known as "Old Dog Syndrome", refers to the onset in elderly dogs of behavioral problems unrelated to a generalized medical condition such as neoplasia, infection, or organ failure. Typical signs of this disorder can include: confusion, disorientation, decreased activity, changes in sleep/wake cycles, loss of house training and loss of interest in or ability to interact with its owner and environment. In clinical studies, the most common side effects of Anipryl(r) were vomiting, diarrhea or changes in behavior. Pet owners should consult a veterinarian before using Anipryl(r) with other medications or with tick collars. In the U.S. an estimated 6.5 million dogs age eight and older show at least one clinical sign associated with CDS(1).

Canine Cushing's disease is a disorder that affects mainly older dogs and is associated with persistently elevated blood cortisol and the presence of one or more clinical signs such as changes in appetite, obesity, excessive water consumption, frequent urination, abdominal distention, loss of hair, lethargy and reduced interaction with owners. The disease is progressive and ultimately fatal. In the United States it is estimated that approximately half a million dogs are affected by canine Cushing's disease with about 150,000 new cases developing each year.

(1) Proprietary market research. Data on file at Pfizer Animal Health, March 1998.

The Pfizer Animal Health Group is a global leader in the discovery, development and delivery of innovative drugs for the treatment of disease in companion animals and livestock. Pfizer Inc. is a research-based, global pharmaceutical company. In 1997 the company reported revenues of about US$12.5 billion and, this year, expects to spend approximately US$2.2 billion on research and development.

DRAXIS Health Inc. is a diversified and integrated pharmaceutical company operating in four niche markets: Veterinary (through its global alliance with Pfizer Inc.) Radiopharmaceuticals (Draximage), Dermatology (SpectroPharm) and Canadian sales and marketing (DRAXIS Pharmaceutica). 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 U.S. Securities and Exchange Commission and Canadian securities authorities.