DRAXIS Breaks Ground for its Second Facility



    Montreal area expansion is result of recent new outsourcing contract

    MONTREAL, Nov. 27 /CNW/ - DRAXIS Health Inc. (TSX: DAX) (NASDAQ:   DRAX),
has initiated construction of a 77,000 square foot new secondary packaging and
warehousing facility in the Montreal area to aid DRAXIS in fulfilling its
obligation under its recently announced contract to produce a broad portfolio
of multiple non-sterile specialty semi-solid products for Johnson & Johnson
Consumer Companies, Inc. The new facility is expected to be completed by
mid-2008, after which equipment will be installed and validated to ensure
compliance with applicable regulatory requirements.
    The new facility has been custom designed by and is being built by
Montreal based developer Broccolini Construction Inc. specifically to meet the
needs of DRAXIS Health with respect to this major new contract but will be
owned by the Broccolini Group of Companies and leased to DRAXIS under a 7 year
agreement with options to renew. The facility will be situated in the Montreal
area in the community of St-Anne-de-Bellevue close to major highway access and
within 10 kilometers (6 miles) of the main DRAXIS production facility in
Kirkland, just outside Montreal.
    Initially, DRAXIS plans to have approximately 50 employees located at
this second facility; part of the 80 to 100 new employees that are expected to
be hired for this contract. Activities to transfer the manufacture of products
from existing locations to DRAXIS have been ongoing during 2007 and will
continue through 2008, leading to the planned start of commercial production
early in 2009.
    The contract to produce semi-solid specialty products calls for
commercial production to start in 2009 and initially run for five years to the
end of 2013. The contract is expected to generate at least $120 million in
revenues during the first five years of commercial production. Prior to
commercial start up, approximately $ 6 to 8 million of cumulative revenues is
expected during the two year period of 2007 through 2008 related to
manufacturing site transfer and process validation activities.

    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 new release
represent the Company's expectations as at November 26, 2007. 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: Jerry Ormiston, Executive Director, Investor
Relations, DRAXIS Health Inc., Phone: 1-877-441-1984

Organization Profile

DRAXIS SPECIALTY PHARMACEUTICALS INC.

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