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

Stellar Pharmaceuticals Inc.

September 29, 2005 10:00 ET

Stellar Pharmaceuticals Inc. Signs Licensing Agreement for Uracyst'R' In China

LONDON, ONTARIO--(CCNMatthews - Sept. 29, 2005) -

Agreement with SHANGHAI YA JUN MEDICAL EQUIPMENT CO. LTD. Fortifies Stellar's Global Sales Strategy

Stellar Pharmaceuticals Inc. ("Stellar") (TSX VENTURE:SLX)(OTCBB:SLRXF), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, today announced that it has signed a licensing agreement with Shanghai Ya Jun Medical Equipment Co. Ltd. ("Shanghai Ya Jun Medical Equipment") for the sale of Uracyst® in China.

Uracyst is a patented therapeutic used in the treatment of glycosaminoglycan (GAG) deficient cystitis, such as Interstitial Cystitis ("IC"), Radiation Induced Cystitis and Chronically Recurring Cystitis. In the urinary bladder, GAG forms a protective barrier between urine and the bladder wall, defects in this barrier function allow toxins and irritants in the urine to seep through resulting in inflammation of the bladder wall. The usual symptom of this inflammation is the need to urgently and frequently urinate. IC is one of the most common forms of cystitis resulting from GAG defects and there is no known cure for this condition, nor is there a dominant treatment in the market.

Shanghai Ya Jun Medical Equipment, based in Shanghai, markets and distributes medical and hospital supplies throughout China. Representing a core of international companies, Shanghai Ya Jun Medical Equipment is well placed within the Chinese medical community and enjoys excellent relationships with doctors, hospitals and medical clinics.

Peter Riehl, Stellar's President and Chief Executive Officer, commented, "Shanghai Ya Jun Medical Equipment has a proven distribution network in place and an excellent industry reputation, reinforcing our belief that they have the ability to successfully launch Uracyst in China. We look forward to building a long-term working relationship with Shanghai Ya Jun Medical Equipment."

Sales royalty revenues from this agreement are expected to commence in late 2006.

Mr. Riehl continued by noting Stellar's success in licensing its products to the global marketplace, most notably in large health care markets such as Europe and the United States. He stated, "We currently sell Uracyst direct in Canada, and through out-licensing sales agreements in Germany, Austria, the Netherlands, Scandinavia and the United Kingdom. China represents a significant sales opportunity, as we believe there is a similar per capita incidence of GAG deficient cystitis as in other markets in which Uracyst is available."

Mr. Chen, President of Shanghai Ya Jun Medical Equipment remarked, "Uracyst® represents an excellent niche opportunity and we are excited to add the product to our portfolio. We will be focusing on interstitial cystitis and other presentations of glycosaminoglycan (GAG) deficient cystitis, especially chemical and radiation induced cystitis and chronic cystitis. We are pleased to work together with the management team at Stellar on the international launch. Our relationships with healthcare professionals in China and established marketing network have always been the key to our successes and we expect to continue this pattern with Uracyst®."

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 has an in-licensing agreement for NMP22® BladderChek®, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer which is expected to positively impact sales in 2005.

About SHANGHAI YA JUN MEDICAL EQUIPMENT CO. LTD.

Located at Pu Dong New Area, Shanghai, the economic center of China, Shanghai Ya Jun Medical Equipment is a well-known and expanding healthcare company with a well respected management team, having provided results for their domestic and international partners. The company is involved in the marketing and distribution of medical devices, medical equipments and hospital supplies in China. Shanghai Ya Jun Medical Equipment distributes products for companies such as Johnson & Johnson and GE.

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 from 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