Paladin Labs Inc.
TSX : PLB

Paladin Labs Inc.

November 10, 2006 16:30 ET

Paladin Labs Expands Presence Into Growing Pain Market

MONTREAL, CANADA--(CCNMatthews - Nov. 10, 2006) - Paladin Labs Inc. (TSX:PLB), a leading Canadian specialty pharmaceutical company, announced today it will be expanding its presence in the growing Canadian pain market through the addition of Vicoprofen® and Metadol® to its product line.

Vicoprofen® contains hydrocodone bitartrate and ibuprofen and is indicated for the short-term (generally less than 10 days) management of acute pain. Hydrocodone bitartrate (related to codeine), a narcotic analgesic, is a known pain reliever. Ibuprofen, a nonsteroidal anti-inflammatory drug (NSAID), is known to relieve pain and to decrease inflammation. Vicoprofen® will compete against products such as Tylenol #3 (codeine and aceptaminophen) which, according to IMS Canada, recorded $18 million in 2005 in Canada. Vicoprofen® has been approved by Health Canada and is expected to be launched by Paladin in the 4th quarter of 2007. Vicoprofen® was licensed from Abbott Laboratories, Limited through an assignment from Pharmascience Inc., a related party to Paladin, by way of an industry standard royalty arrangement.

Metadol® contains methadone hydrochloride and is approved in Canada as an analgesic in acute cancer pain, palliative care and chronic pain disorders and for detoxification or maintenance treatment of opioid-dependent individuals. Paladin will be distributing Metadol® through a license and distribution agreement signed with Pharmascience Inc. Metadol® will compete in the long acting oral opioid market valued by IMS in 2005 at $320 million. According to IMS Canada, for the 12 months ending June 2006, Metadol® sales were $3.6 million up 46% versus prior year.

The monetary terms of the agreements were not disclosed.

Metadol® and Vicoprofen® will complement Paladin's market leading Statex® line of immediate release morphine products. Paladin will build a specialty sales team focused on pain management and specialty central nervous disorders to support the successful promotion of Metadol® and launch of Vicoprofen®.

About Paladin Labs Inc.

Paladin Labs Inc., headquartered in Montreal, Canada, is a leading specialty pharmaceutical company focused on developing, acquiring or in-licensing innovative pharmaceutical products for the Canadian market. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Paladin Web Site at www.paladinlabs.com.

These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the Company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the annual report as well as in the Company's Annual Information Form for the year ended December 31, 2005. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether a result of new information, future events, or except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Company's ongoing quarterly fillings, annual report and Annual Information Form and other fillings found on SEDAR at www.sedar.com

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