Stellar Pharmaceuticals Inc.
OTC Bulletin Board : SLXCF

Stellar Pharmaceuticals Inc.

August 22, 2005 08:00 ET

Stellar Pharmaceuticals Inc. Signs Licensing Agreement for Distribution and Sale of NeoVisc'R' in Lebanon and Syria

LONDON, ONTARIO--(CCNMatthews - Aug. 22, 2005) -

Expansion of Stellar's Global Strategy

Stellar Pharmaceuticals Inc. ("Stellar") (TSX VENTURE:SLX)(OTCBB:SLXCF), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, today reported signing a Licensing Agreement with TECHNIMED of Anteljas, Lebanon in respect of the distribution and sale of NeoVisc®, a product used for the treatment of osteoarthritis, in Lebanon and Syria.

In exchange for the right to market and sell NeoVisc® in the above Territory Technimed has agreed to obtain all necessary regulatory approvals at its sole cost and will pay Stellar a specified royalty in respect of all sales in either of these territories. This agreement has an initial three-year term and may be renewed for an additional three year term with the mutual agreement of both parties.

Peter Riehl, Stellar's President and Chief Executive Officer, stated, "This agreement reflects our strategy to license our proprietary products into the global market place and we look forward to building a long-term working relationship with Technimed." Revenues from this agreement are expected to commence in the 4th quarter of 2005.

Technimed is a Lebanese company involved in the marketing and distribution of medical and hospital supplies. Representing companies from Europe and North America, Technimed is well placed within the medical community and enjoys excellent relationships with doctors, hospitals and medical clinics.

Continued Advancement in Implementing International Sales Partnering

Mr. Riehl continued, "The out-licensing of these products is an important component of Stellar's overall growth strategy. Lebanon and Syria will join the following list of countries and regions in which NeoVisc is currently licensed: the United States, Latin America, Mexico, the Caribbean, Malaysia, Singapore, Brunei and Turkey. Out-licensing agreements are also in place for Uracyst, Stellar's proprietary therapy for the treatment of Interstitial Cystitis, in the United States, Germany, Austria, the Netherlands, Scandinavia, the United Kingdom and France."

About NeoVisc®

NeoVisc is a 2 mL pre-filled syringe of sterile 1.0% sodium hyaluronate solution used for the temporary replacement of synovial fluid in osteoarthritic joints. NeoVisc is packaged, sold and marketed as a three injection therapy that has been shown to provide symptomatic relief of the pain of osteoarthritis for an average of 6-12 months. The product is administered weekly by injection directly into the affected joint.

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.

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
    Stellar Pharmaceuticals Inc.
    Arnold Tenney
    Cell (416) 587-3200
    The Equity Group Inc.
    Devin Sullivan
    (212) 836-9608
    The Equity Group Inc.
    Adam Prior
    (212) 836-9606