Paladin Labs Inc.
TSX : PLB

Paladin Labs Inc.

December 01, 2006 07:30 ET

Paladin to Assume Pennsaid'R' Promotion

MONTREAL, CANADA--(CCNMatthews - Dec. 1, 2006) - Paladin Labs Inc. (TSX:PLB), a leading Canadian specialty pharmaceutical company, today announced that it will assume Canadian Pennsaid® (topical diclofenac) sales and marketing responsibilities from Solvay Pharma Inc. effective December 1, 2006. Paladin acquired the Canadian rights to Pennsaid® from Nuvo Research Inc. which included a co-promotional agreement with Solvay Pharma Inc.

"Pennsaid® offers patients safe and effective treatment for osteoarthritis of the knee. In fact, in clinical studies Pennsaid® was shown to be as effective as oral dicolfenac tablets, without any systemic side effects. It is for this reason that sales of Pennsaid continue to increase as physicians and patients recognize the need for effective, non systemic therapy", said Jonathan Ross Goodman, President and CEO of Paladin Labs. "This is an important transaction for Paladin in that we will no longer share Pennsaid® revenues. We would like to thank Solvay for their help in the promotion of Pennsaid®."

About Pennsaid®

Pennsaid® is a topical non-steroidal anti-inflammatory (NSAID) used for the treatment of osteoarthritis and is currently approved for sale in Canada and several European countries. Pennsaid® allows the diclofenac solution to be delivered to a specific site via the surface of the skin and thus avoids complications associated with systemic delivery. According to published clinical trials, Pennsaid® is as effective as the maximum daily dose of comparable oral medication at relieving pain and stiffness associated with osteoarthritis of the knee, as well as improving overall well-being. There is currently no topical NSAID product approved in Canada.

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 subsidiary, 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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