DRAXIS Previews Earnings for Fourth Quarter and Year End 2007



    MONTREAL, Jan. 17 /CNW/ - DRAXIS Health Inc. (TSX: DAX) (NASDAQ:   DRAX)
currently estimates that net earnings for the fourth quarter ended
December 31, 2007 will be approximately a loss of 1 cent per share. The
Company further estimates that net earnings per share for the 2007 fiscal year
will be 4 cents. In addition, net operating cash flows for the year ended
December 31, 2007 are expected to be approximately $13 million. All amounts
are expressed in U.S. dollars. These amounts are unaudited and subject to
final adjustments, if necessary.
    Net earnings for the fourth quarter of 2007 improved 4 cents over the
third quarter of 2007, excluding severance charges in both quarters.
    Results for the fourth quarter of 2007 were impacted by the slowdown in
the nuclear medicine industry during December related to a shortage of medical
isotopes. Results were also impacted by changes made by DRAXIS Pharma
customers to their shipping schedules and the timing of product demand. In
addition, DRAXIS rescheduled certain revenue producing service activities into
2008.
    Results for the fourth quarter include one-time severance expenses
related to decisions to reduce corporate overheads, including closing the
Company's offices in Mississauga, Ontario early in 2008. Severance expenses in
the fourth quarter of 2007 resulted in a charge to net earnings of
approximately 3 cents per share as previously disclosed. Accordingly, net
earnings per share, excluding severances, amounted to positive net earnings of
2 cents per share for the quarter.
    DRAXIS is scheduled to report results for the fourth quarter and year end
before the opening of trading on Thursday, February 7, 2008. A conference call
with management to discuss the fourth quarter results and operating activities
is scheduled for 10:00 AM (ET) on that date.

    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 16, 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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