DRUG ROYALTY ANNOUNCES MANAGEMENT CHANGES.

TORONTO--(BUSINESS WIRE)--July 10, 1995--DRUG ROYALTY CORP.(TSE: DRI ) Drug Royalty Corp. Inc. announced today the appointment of a new Chairman and CEO and additions to senior management. These changes reflect the Company's continued commitment towards building an international pharmaceutical company based on acquiring royalty interests in drug products.

Edward K. Rygiel will assume the responsibilities of Chairman and Chief Executive Officer, replacing William C. Garriock who will remain on the Board of Directors of Drug Royalty. Rygiel has been a Director of Drug Royalty from the outset, and currently holds the position of President of MDS Health Ventures Inc. He has extensive investment experience in the health and life sciences field worldwide, investing in private and public ventures involved in pharmaceutical and biotechnology development. He holds a B.Sc. in Chemical Engineering from the University of Toronto and sits on the boards of several companies in the health care field.

Drug Royalty also announced the appointment of Harry Loveys and James Webster to the new positions of Senior Vice-President. Loveys has extensive international pharmaceutical industry experience gained over his 25-year career at The Upjohn Company, with a broad knowledge of marketing, sales, medical, regulatory and government affairs. He has developed strategic product plans for international markets including France, Italy, Spain, Japan and the U.K. Most recently, Loveys was Executive Vice President of The Upjohn Company of Canada.

Since joining Drug Royalty in June 1993, Webster has been closely involved in developing and negotiating royalty agreements. He previously held senior corporate development, operations and financial positions with a major public corporation. Webster was formerly Vice President, Finance and Business Development of Drug Royalty. He holds a C.A. and M.B.A. from the University of Western Ontario.

Webster and Loveys will be responsible for directing day-to-day operations, with the assistance of Drug Royalty's Technical Advisory Board and Dr. John McCulloch, Director of Scientific Affairs, who will provide scientific and technical support as required.

In addition to these appointments, Ed Rygiel announced that Jeff Leighton, Ph.D. and Bill Wassenaar, M.D., will provide technical, scientific and business assistance on a part-time basis.

Dr. Leighton will reside in Boston and provide Drug Royalty with a presence in this important U.S. biotech market. It is expected that Dr. Leighton will be elected to the Company's Board of Directors on July 13th.

Dr. Leighton has been involved in drug discovery activities for almost twenty years, including the broad therapeutic areas of respiratory, cardiovascular, CNS, immunology, cancer and metabolic diseases. He has been a Vice President for Pharmacology at Glaxo Inc. and Principal Scientist at Burroughs Wellcome Company. Recently, he has been responsible for the business and scientific focus of a number of early stage drug discovery companies including Genesis Pharmaceuticals, ICAgen and Sphinx Pharmaceuticals.

Dr. Wassenaar was formerly a Director and President of Ferring Inc. of Ontario, Canada from 1986 to 1994. Between 1990 and 1994 he was also President of Ferring Laboratories, Inc. of Suffern, New York. In 1976 he joined Sterling Drug Ltd. as Medical Director, and in 1981 he became President of Winthrop Laboratories, the ethical pharmaceutical marketing division of Sterling Drug Limited. In 1985 he became President of Sterling Drug Limited, the position he held until he left the company in 1986. Earlier this year, Dr. Wassenaar was appointed to Drug Royalty's Board of Directors.

"I am excited about the prospects for building on Drug Royalty's accomplishments with the management team we now have in place", stated Ed Rygiel, Chairman and CEO of Drug Royalty. "Mr. Loveys' broad knowledge and international pharmaceutical experience are complementary to Mr. Webster's broad financial expertise and royalty-deal experience, giving us a strong royalty interest acquisition team", he elaborated. "Drs. Wassenaar and Leighton will join Mr. Loveys and Mr. Webster to form an Investment Committee reporting to me on all proposed royalty opportunities".

Drug Royalty Corporation Inc. is the first Canadian public company to provide shareholders with a means of participating in the global pharmaceutical industry by developing and acquiring royalty rights in emerging and existing drugs. The company has royalty interests in over 15 drug products in seven major therapeutic areas worldwide and is earning current royalties from 12 of these. Drug Royalty's common shares trade on The Toronto Stock Exchange under the symbol DRI.

CONTACT: Drug Royalty Corp. Inc.

Jim Webster, 416/863-1865 or 416/863-5161 Fax