DRAXIS and Pfizer Enter Worldwide Anipryl Alliance

Business Wire, Nov 13, 1997

MISSISSAUGA, ONTARIO--(BUSINESS WIRE)--Nov. 13, 1997--DRAXIS Health Inc.(TSE:DAX.) (NASDAQ:DRAXF) DRAXIS Health Inc. today announced that it has entered a worldwide comprehensive alliance with Pfizer Inc. (NYSE - PFE) with respect to Anipryl(R), DRAXIS' proprietary prescription drug for the treatment of canine Cushing's disease and canine cognitive dysfunction.

Under the terms of the alliance, DRAXIS' wholly-owned subsidiary, Deprenyl Animal Health, Inc. (DAHI) will license the right to market, sell and distribute Anipryl(R) globally to Pfizer Animal Health and DRAXIS will supply the manufactured product to Pfizer. The transaction is expected to close in December 1997, subject only to clearance under the Hart-Scott Rodino Act in the United States and customary closing documentation. Salomon Brothers Inc. of New York provided financial advisory and investment banking services to DRAXIS and DAHI in connection with the transaction.

The arrangement will result in DRAXIS receiving up to US$41 million (CDN$57 million) in payments as follows: US$15 million (CDN$21 million) on closing, US$10 million (CDN$14 million) upon receipt of FDA approval of the cognitive dysfunction supplementary claim and up to an additional US$16 million (CDN$22 million) contingent upon receipt of regulatory approvals for Anipryl(R) in specified major country markets. Anipryl(R) is the first and only drug approved in the United States for canine Cushing's disease. It is approved in Canada for both canine Cushing's disease and canine cognitive disorder. Its file for cognitive disorder was submitted to the FDA in late August 1997.

In addition, DRAXIS will receive royalties based on Pfizer's worldwide sales of Anipryl(R) based on a sliding scale where royalty rates are highest on the initial tranches of annual sales and decline as annual sales reach higher levels, providing a strong sales performance incentive.

DAHI plans to expand its scientific and regulatory activities to manage, with support from Pfizer, the various regulatory filings around the world, the maintenance of the various worldwide patents that are covered in the transaction, and an expanded research and development program on new indications and formulations for Anipryl(R). Additional milestones are payable for certain new indications and Pfizer will cover certain pre-agreed direct costs of DAHI's research and development program.

Dr. Martin Barkin, President and CEO of DRAXIS stated: "Dr. David Stevens and the scientific team of DAHI have done an outstanding job of bringing the development of Anipryl(R) from the research bench to the clinic. Pfizer Animal Health is the ideal partner for Anipryl(R). It has unmatched global capabilities in the companion animal health care business including one of the most professional selling groups in the industry. During 1997, Pfizer demonstrated its abilities in this growing market with its very successful introduction of Rimadyl(R) in the United States for canine arthritis. Anipryl(R) will be a natural companion drug to Rimadyl(R) in providing innovative and effective solutions for aging companion dogs."

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 health care company. In 1996 the company reported sales of US$11.3 billion and, this year, expects to spend more than US$1.9 billion on research and development.

DRAXIS Health Inc. is an emerging Canadian pharmaceutical company with four operating business units. The Veterinary Pharmaceutical Unit (operating under the name Deprenyl Animal Health, Inc.) researches, develops, markets and sells prescription pharmaceuticals for companion animals. The Dermatology Pharmaceutical Unit (operating under the name SpectroPharm Dermatology) researches, markets and sells prescription and non-prescription dermatologicals, including podiatrics, in Canada and the United States. The Canadian Pharmaceutical Marketing Unit (operating under the name DRAXIS Pharmaceutica) markets and sells in Canada prescription pharmaceuticals specializing in the field of neurological disease. The Radiopharmaceutical Unit (operating under the name DRAXIMAGE Inc.) is engaged in the research, development, manufacture, marketing and sale of radiopharmaceuticals for diagnostic and therapeutic purposes.

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.