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DRAXIS Health Reports Fourth Quarter and Year End Results
Date:2/7/2008

DRAXIMAGE is in discussions with potential marketing and

manufacturing partners for its MOLY-FILL(TM) Technetium Generator.

During the fourth quarter of 2007, the Company completed a field

test evaluation of a prototype version of this product and the

results of the evaluation will contribute to the continuing product

development process.

Outlook and Guidance Intentions

Guidance targets for 2007, which were revaluated during the course of 2007 were not achieved as a result of the following factors:

- Subsequent to the second quarter of 2007, an ongoing assessment of

the Company's cost structure began with the appointment of Jean-

Pierre Robert as President of DSPI, thereby responsible for the

Company's operating units. In addition, a parallel review of the

Company's corporate overhead structure was initiated to reduce

overhead costs and eliminate redundancies Company wide. This is

related to the higher cost burden associated with these costs as a

result of the stronger Canadian dollar, the upgrade of our SAP

systems and overall plans to achieve greater efficiencies. During

the course of 2007, the Company took severance cost provisions of

$1.6 million in contract manufacturing and $0.7 million in its

corporate segments as a result, including the decision to close its

Mississauga office location in early 2008.

- During 2007, the strengthening of the Canadian dollar from $CDN1.165

per U.S. dollar as at December 31, 2006 to $CDN0.991 per U.S. dollar

as at December 31, 2007 has resulted in foreign exchange losses for

all of 2007 of approximately 3 cents per share or $1.7 million. This

foreign exchange loss resulted from the revaluation of U.S.

dollar-denominated net monetary assets.

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SOURCE DRAXIS Health Inc.
Copyright©2008 PR Newswire.
All rights reserved

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