DRAXIS Announces Application for Normal Course Issuer Bid



    MONTREAL, Jan. 11 /CNW/ - DRAXIS Health Inc, (TSX: DAX) (NASDAQ:   DRAX)
has applied to the Toronto Stock Exchange (TSX) to make a Normal Course Issuer
Bid (NCIB), subject to TSX approval, to buy back its common shares through the
facilities of the TSX.
    The maximum number of common shares which may be purchased for
cancellation pursuant to the NCIB is such number of common shares which
represents 10% of the common shares in the public float on the date the TSX
approves the NCIB. Based on the 40,720,539 common shares in the public float
as at December 31, 2007, that maximum number would be 4,072,054. The actual
number of common shares purchased, if any, and the timing of such purchases
will be determined by DRAXIS considering market conditions, stock prices, its
cash position, and other factors.
    The Board of Directors of DRAXIS believes that the underlying value of
DRAXIS is not reflected in the current market price of its common shares, and
may not be so reflected at certain times during the course of the NCIB, and
has thus concluded that the repurchase of common shares pursuant to the
proposed NCIB presently constitutes an appropriate use of financial resources
and would be in the best interest of shareholders.
    Purchases under the NCIB are expected to be permitted to commence on or
about January 21, 2008 and will terminate on January 20, 2009 or the date upon
which the maximum number of common shares have been purchased by DRAXIS
pursuant to the NCIB. There cannot be any assurances as to how many shares, if
any, will ultimately be acquired by DRAXIS under the NCIB, and DRAXIS intends
that any shares acquired pursuant to the NCIB will be cancelled.
    Any purchases made pursuant to the NCIB will be made in accordance with
the rules of the TSX and will be made at the market price of the common shares
at the time of the acquisition. DRAXIS will make no purchases of common shares
other than open market purchases which may be made during the period that the
NCIB is outstanding.

    About DRAXIS Health Inc.

    DRAXIS Health, through its wholly owned operating subsidiary, DRAXIS
Specialty Pharmaceuticals Inc., provides products in three categories: sterile
products, non-sterile products and radiopharmaceuticals. Sterile products
include liquid and freeze-dried (lyophilized) injectables plus sterile
ointments and creams. Non-sterile products are produced as solid oral and
semi-solid dosage forms. Radiopharmaceuticals are used for both therapeutic
and diagnostic molecular imaging applications. Pharmaceutical contract
manufacturing services are provided through the DRAXIS Pharma division and
radiopharmaceuticals are developed, produced, and sold through the DRAXIMAGE
division. DRAXIS employs approximately 500 staff in its Montreal facility.
    For additional information please visit www.draxis.com

    Caution Concerning Forward-Looking Statements

    This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended (the "Securities
Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act") and as contemplated under other applicable securities
legislation. These statements can be identified by the use of forward-looking
terminology such as "may," "will," "expect," "anticipate," "estimate,"
"continue," "plan," "intend," "believe" or other similar words. These
statements discuss future expectations concerning results of operations or
financial condition or provide other forward-looking information. Our actual
results, performance or achievements could be significantly different from the
results expressed in, or implied by, those forward-looking statements. You
should not place undue reliance on any forward-looking statement, which speaks
only as of the date made.
    These statements are not guarantees of future performance. By their
nature, forward-looking statements involve numerous assumptions, known and
unknown risks, uncertainties and other factors that may cause the actual
results or performance of the Company to be materially different from such
statements or from any future results or performance implied thereby. Factors
that could cause the Company's results or performance to differ materially
from a conclusion, forecast or projection in the forward-looking statements
include, but are not limited to:

    
    -   the achievement of desired clinical trial results related to the
        Company's pipeline products;
    -   timely regulatory approval of the Company's products;
    -   the ability to comply with regulatory requirements applicable to the
        manufacture and marketing of the Company's products;
    -   the Company's ability to obtain and enforce effective patents;
    -   the non-infringement of third party patents or proprietary rights by
        the Company and its products;
    -   factors beyond our control that could cause interruptions in our
        operations in our single manufacturing facility (including, without
        limitation, material equipment breakdowns);
    -   reimbursement policies related to health care;
    -   the establishment and maintenance of strategic collaborative and
        commercial relationships;
    -   the Company's dependence on a small number of key customers;
    -   the disclosure of confidential information by our collaborators,
        employees or consultants;
    -   the preservation of healthy working relationships with the Company's
        union and employees;
    -   the Company's ability to grow the business;
    -   the fluctuation of our financial results and exchange and interest
        rate fluctuations;
    -   the adaptation to changing technologies;
    -   the loss of key personnel;
    -   the avoidance of product liability claims;
    -   the loss incurred if current lawsuits against us succeed;
    -   the volatility of the price of our common shares;
    -   market acceptance of the Company's products;
    -   factors described under "Outlook" in the Company's MD&A for the most
        recent quarter; and
    -   the risks described in "Item 3. Key Information - Risk Factors" in
        the Annual Report Form 20-F filed by the Company with the United
        States Securities and Exchange Commission and which is also filed as
        the Company's Annual Information Form with Canadian securities
        regulators.
    

    For additional information with respect to certain of these and other
factors, and relating to the Company generally, reference is made to the
Company's most recent filings with the United States Securities and Exchange
Commission (available on EDGAR at www.sec.gov) and the filings made by the
Company with Canadian securities regulators (available on SEDAR at
www.sedar.com). The forward-looking statements contained in this document
represent the Company's expectations as at January 10, 2008. Unless otherwise
required by applicable securities laws, the Company disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

    %SEDAR: 00004049E




For further information:

For further information: DRAXIS Health Inc.: Jerry Ormiston, Executive
Director, Investor Relations, Tel: (877) 441-1984

Organization Profile

DRAXIS SPECIALTY PHARMACEUTICALS INC.

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