DRAXIS Health to Acquire Quebec Pharmaceutical Manufacturing Facility from IVAX Corporation

Business Wire, March 16, 1998

MISSISSAUGA, Ontario--(BUSINESS WIRE)--March 16, 1998--DRAXIS Health Inc.(TSE:DAX.) (NASDAQ:DRAXF)

Facility to Become Site for Draximage and Service DRAXIS' Manufacturing Requirements

DRAXIS Health Inc. announced today that it has entered into a memorandum of agreement with IVAX Corporation (AMEX - IVX) to acquire IVAX's pharmaceutical manufacturing facility located in Kirkland, Quebec.

The 238,000 ft2 facility is a world-class pharmaceutical plant equipped to manufacture a variety of dosage forms including tablets, liquids, small volume parenterals (injectables), creams, ointments and sterile solutions. The facility's sterile manufacturing department manufactures prescription pharmaceuticals for both the Canadian and United States marketplace. Prior to the acquisition of Burroughs Wellcome by Glaxo, the facility was the flagship manufacturing facility for Burroughs Wellcome in Canada. In January 1997, IVAX acquired the facility from Glaxo Wellcome Inc.

The facility will become the permanent site for Draximage, DRAXIS' radiopharmaceutical subsidiary, and is expected to assume manufacturing responsibilities over time for the Company's SpectroPharm Dermatology line of products and Anipryl(R), DRAXIS' veterinary drug which was recently licensed to Pfizer Animal Health and for which DRAXIS has a supply agreement. Acquisition of the facility will lead to the consolidation of a substantial portion of DRAXIS' businesses in a single location in the Province of Quebec.

In commenting on the acquisition, Dr. Martin Barkin, President and CEO of DRAXIS stated: "Acquisition of this facility is a truly unique opportunity for DRAXIS. In addition to its being an excellent fit with our own facility and manufacturing requirements, we will actively pursue additional third party manufacturing opportunities to complement those already serviced by the facility. DRAXIS intends to enhance the facility's existing FDA and HPB-approved sterile manufacturing capabilities through the addition of sterile lyophilization capacity. We look forward to working with the facility's management team and skilled employees and integrating them into the DRAXIS' group."

The acquisition is expected to close in late March 1998 and is subject to, among other things, due diligence, negotiation and signing of definitive agreements and the receipt of certain required approvals.

DRAXIS intends to fund the acquisition through a combination of its existing cash reserves and certain external financing arrangements.

DRAXIS Health Inc. is a diversified pharmaceutical company with operations in four niche businesses: Deprenyl Animal Health, Inc. researches and develops prescription pharmaceuticals for companion animals, the lead product of which, Anipryl(R), has been licensed to Pfizer Animal Health on a worldwide basis; SpectroPharm Dermatology researches, develops, markets and sells prescription and non-prescription dermatologicals; Draximage researches, develops, manufactures, markets and sells radiopharmaceuticals for diagnostic and therapeutic purposes; and DRAXIS Pharmaceutica markets and sells prescription pharmaceuticals in Canada.

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.

CONTACT: DRAXIS Health Inc.

Kendall McAlister, 905/677-5500 ext 248