Draxis Health Inc.

Draxis Health Inc.

January 03, 2005 17:00 ET

DRAXIS Amalgamates its Two Subsidiaries




JANUARY 3, 2005 - 17:00 ET

DRAXIS Amalgamates its Two Subsidiaries

MISSISSAUGA, ONTARIO--(CCNMatthews - Jan. 3, 2005) - DRAXIS Health Inc.
(TSX:DAX)(Nasdaq:DRAX) announced today that effective January 1, 2005 it
has amalgamated its two wholly-owned subsidiaries, DRAXIS Pharma Inc.
and DRAXIMAGE Inc., to achieve certain business and tax efficiencies.
The amalgamated subsidiary is called DRAXIS Specialty Pharmaceuticals
Inc. but will continue to conduct business as two divisions, DRAXIS
Pharma and DRAXIMAGE, and serve as the operating arm of the parent
company, DRAXIS Health Inc.

This amalgamation is consistent with the strategic objectives of DRAXIS
Health Inc. to pursue continued growth in and to focus the resources of
the organization on the core operating businesses of DRAXIS Specialty
Pharmaceuticals Inc.

About DRAXIS Health Inc.

DRAXIS Health Inc. www.draxis.com is a rapidly growing company providing
specialty pharmaceutical products globally in three categories. Sterile
products include liquid and freeze-dried (lyophilized) injectables,
sterile ointments and sterile creams. Specialty non-sterile products are
produced as tablets, capsules, ointments, liquids and creams.
Proprietary radiopharmaceuticals are used for both therapeutic and
diagnostic molecular imaging applications. Pharmaceutical contract
manufacturing services are provided through the DRAXIS Pharma division
and radiopharmaceuticals are developed, produced and sold through the
DRAXIMAGE division. DRAXIS Health employs nearly 500 staff in its
Montreal facility.

This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
statements are not guarantees of future performance. By their nature,
forward-looking statements involve numerous assumptions, known and
unknown risks, uncertainties and other factors that may cause the actual
results or performance of the Company to be materially different from
such statements or from any future results or performance implied
thereby. Factors which could cause the Company's results or performance
to differ from current expectations include, but are not limited to,
timely regulatory approval of the Company's products; the ability to
comply with regulatory requirements applicable to the manufacture and
marketing of the Company's products; the Company's ability to obtain and
enforce effective patents; the non-infringement of third party patents
or proprietary rights by the Company and its products; the establishment
and maintenance of strategic collaborative and commercial relationships;
the Company's dependence on a small number of key customers; the
Company's ability to protect its confidential information; the
preservation of healthy working relationships with the Company's unions
and employees; the avoidance of product liability claims; and market
acceptance of the Company's products. For additional information with
respect to certain of these and other factors, reference should be made
to the Company's most recent Form 20-F filed with the United States
Securities and Exchange Commission, and its Annual Information Form
filed with the Canadian securities regulators. Unless otherwise required
by applicable securities laws, the Company disclaims any intention or
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.


Contact Information

    DRAXIS Health Inc.
    Jerry Ormiston
    Investor Relations