DRAXIS Signs U.S. Brachytherapy Seed Agreement with Cytogen.

Business Editors

MISSISSAUGA, Ontario--(BUSINESS WIRE)--Sept. 14, 2000

DRAXIS Health Inc. (TSE:DAX.)(NASDAQ:DRAX) today announced that DRAXIMAGE, its wholly owned radiopharmaceutical subsidiary, has signed a binding letter of intent with Cytogen Corporation (NASDAQ:CYTO) to market and distribute its patented BrachySeed(TM) implant.

Under the terms of the agreement DRAXIMAGE will receive both milestone payments and royalties on sales.

Dr. Martin Barkin, President and CEO of DRAXIS Health, stated: "We are very pleased to initiate this business relationship with Cytogen, a company specializing in the diagnosis and treatment of prostate cancer. Cytogen has a focused marketing and selling organisation for the diagnostic imaging agent, ProstaScint(R), which is now the accepted standard in most protocols for the management of prostate cancer. As Cytogen has a long established relationship with leading urologists and radiation oncologists, the same target audience as BrachySeed(TM), this makes Cytogen our ideal marketing partner in the U.S."

"This is a very good strategic fit for both companies and a relationship which will generate excellent synergies," explained H. Joseph Reiser, Ph.D., President and CEO of Cytogen. "ProstaScint(R), our radiolabeled monoclonal antibody, is the leading imaging agent for determining if prostate cancer has spread beyond the prostate. With BrachySeed(TM) we will now be able to offer a technologically advanced therapeutic product to complement our diagnostic line."

Brachytherapy implants are used in the treatment of localized cancers, primarily prostate, the second most common form of cancer and the second leading cause of cancer deaths in men. 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.

BrachySeed(TM) is a second generation brachytherapy implant which demonstrates a number of important innovations over currently available technology, including double encapsulation for additional patient safety and near perfect dosimetry. The most important advantage was reported earlier by researchers at McMaster University, Ontario, Canada, who confirmed that the dose and radiation distribution of BrachySeed(TM) exhibits excellent symmetry.

Dr. Barkin concluded, "We expect that BrachySeed(TM) will be available in the U.S. late this year. The market size for brachytherapy seeds in the U.S. is approaching $200 million annually and is expected to continue to grow."

Cytogen Corporation is an established biopharmaceutical company in Princeton, NJ, with two principal lines of business, proteomics and oncology. The Company is extending its expertise in antibodies and molecular recognition to the development of new products and proteomics-driven drug delivery platform. The Company has established a pipeline of product candidates based on its proprietary antibody and prostate specific membrane antigen, or PSMA, technologies. The Company's cancer management franchise currently comprises three marketed FDA-approved products: ProstaScint(R), used to image the extent and spread of prostate cancer; OncoScint CR/OV(R), a diagnostic imaging agent for colorectal and ovarian cancer; and Quadramet(R), for the relief of cancer-related bone pain, particularly for metastatic cancer of the prostate.

DRAXIMAGE, based in Kirkland, Quebec, is Canada's leading manufacturer of radiopharmaceuticals and its products are available in many countries around the world. DRAXIMAGE specializes in the discovery, development, manufacturing and marketing of diagnostic and therapeutic products for use in Nuclear Medicine and Oncology. Fibrimage(R), the Company's diagnostic agent for deep vein thrombosis is undergoing 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.