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

r

demand. The lower than expected volumes from Genzyme have offset the

positive impact of increased volumes related to new business

activities taking place during 2007 within our contract

manufacturing division. We believe that the trend is for Hectorol(R)

volumes to ultimately be phased out during 2009. We also anticipate

quarterly fluctuations in volume which may not be predictable.

- The contract manufacturing segment began to implement procedures,

including organizational changes, to reduce production delays that

have in the past resulted in shipments not being released in a

timely manner impacting quarterly results for most of 2007.

While short-term financial performance for 2007 was below the Company's expectations, the Company did achieve significant key milestones consistent with the sources of future growth for the Company in future years.

Guidance for Future Years

The Company expects progressively improving financial results during 2008 compared to 2007 as a result of increased demand through new business opportunities, product introductions and additional contracts. This is expected to result in continuing year-over-year growth in revenues, operating income, and cash flows going forward, starting from a base in 2008. Net earnings per share for 2008 are expected to increase significantly over 2007. However, the extent to which the Company can reasonably predict the financial performance for 2008 is limited due to variables outside of the control of the Company. Accordingly, the Company does not plan to provide specific quantitative guidance given the anticipated period of expansion and significant growth that is expected to be accompanied by periods of increased forecast variability due to several factors, including the following:

- The timing and ramping up of commercial production of non-sterile

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

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