MONTREAL, Jan. 11 /PRNewswire-FirstCall/ - 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
For additional information please visit http://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
- 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
- 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
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 http://www.sec.gov) and the filings made by the Company with Canadian securities regulators (available on SEDAR at http://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.
|SOURCE DRAXIS Health Inc.|
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