Stellar Pharmaceuticals Inc.
TSX VENTURE : SLX
OTC Bulletin Board : SLXCF

Stellar Pharmaceuticals Inc.

July 14, 2005 08:00 ET

Stellar Pharmaceuticals Inc. and InnoGen Ltd. Sign NeoVisc'R' Licensing Agreement for Turkey

LONDON, ONTARIO--(CCNMatthews - July 14, 2005) - Stellar Pharmaceuticals Inc. ("Stellar") (OTCBB:SLXCF)(TSX VENTURE:SLX), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, today announced that it has signed an exclusive licensing agreement with INNOGEN ILAC SAN. TIC. LTD. STI. ("InnoGen Ltd.") for the sale of NeoVisc® in Turkey. NeoVisc is Stellar's proprietary viscosupplementation therapy for the treatment of osteoarthritis ("OA") of the knee.

Sales of NeoVisc will not commence until the receipt of all required approvals from Turkish authorities. However, Stellar believes that sales of NeoVisc in Turkey should commence in late 2006, with Stellar recognizing revenues from such sales in Q4 2006.

Peter Riehl, President and Chief Executive Officer of Stellar, commented, "Stellar continues to make progress in implementing its international sales partnering strategy. Turkey joins the following list of countries and regions in which NeoVisc is currently licensed: United States, Germany, Latin America, Mexico, the Caribbean, Malaysia, the Middle East, Singapore and Brunei. Viscosupplementation therapy is well established in Turkey, representing a market that is estimated to be in excess of US $12,000,000 per year. NeoVisc has demonstrated comparable efficacy to currently available viscosupplementation therapies in Turkey.

About NeoVisc®

NeoVisc offers patients a drug-free method to treat the pain of OA. Three injections of NeoVisc into the affected joint administered over a three-week period has been shown to provide symptomatic relief of OA pain for an average of 6-12 months. NeoVisc is manufactured using a synthetic hyaluronan, unlike competitors that use hyaluronan extracted from cock's combs. Because it is synthetic, NeoVisc eliminates the adverse reactions experienced with animal-based hyaluronan.

About Stellar Pharmaceuticals Inc.

Stellar has developed and is marketing direct in Canada and in countries around the world through out-license agreements, three products based on its core polysaccharide technology: NeoVisc®, for the treatment of osteoarthritis; and Uracyst® and the Uracyst® Test Kit, its patented technology for the diagnosis and treatment of interstitial cystitis (IC), an inflammatory disease of the urinary bladder wall. Stellar also has in-licensing agreements for Skelite™ a proprietary synthetic bone-grafting product and NMP22® BladderChek®, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer which are expected to positively impact sales in 2005.

About INNOGEN LTD.

InnoGen Ltd. is a full-service, privately-held, Turkish-registered company, with expertise in licensing to market, promoting, distributing, and selling pharmaceutical end products in the territory. InnoGen Ltd. is conscious about the importance of human health and life and in this direction it presents qualified and reliable products to Turkish market. In particular, InnoGen Ltd. seeks to source new and innovative medical and pharmaceutical products and to introduce them to Turkey.

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations, to attract and retain qualified professionals, technological obsolescence; general economic conditions; and other risks detailed time to time in the Company's filings.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Stellar Pharmaceuticals Inc.
    Peter Riehl
    President & CEO
    (800) 639-0643 or (519) 434-1540
    or
    Stellar Pharmaceuticals Inc.
    Arnold Tenney
    Cell (416) 587-3200
    or
    INVESTOR RELATIONS COUNSEL:
    The Equity Group Inc.
    Devin Sullivan
    (212) 836-9608
    dsullivan@equityny.com
    or
    The Equity Group Inc.
    Adam Prior
    (212) 836-9606
    aprior@equityny.com