DRAX » Topics » CORPORATE MATTERS

This excerpt taken from the DRAX 6-K filed Nov 2, 2007.

Corporate Matters

Streamlining of Executive Leadership

Following the end of the second quarter of 2007, the Company announced senior level organization changes designed to further streamline the Company’s leadership and better reflect the core operating businesses in Montreal.  Effective July 21, 2007, Mr. Jean-Pierre Robert assumed the role of President of DSPI, the Company’s wholly owned operating subsidiary that provides products in three categories: sterile products, non-sterile products and radiopharmaceutical products.

In addition, the Office of the President was established at the corporate level and includes Dr. Martin Barkin, President and Chief Executive Officer of DRAXIS Health Inc., together with Mr. Dan Brazier, Chief Operating Officer.  Within the Office of the President, Dr. Barkin and Mr. Brazier retain their current responsibilities. Mr. Robert, as President of DSPI, reports to Mr. Brazier.

Mr. John Durham left the Company effective July 20, 2007 to pursue other interests.

Normal Course Issuer Bid

The Company received approval from the TSX on December 18, 2006 for the renewal of its Normal Course Issuer Bid (the “2006 Issuer Bid”). DRAXIS may now repurchase up to 3,397,011 of its common shares, which represents 10% of the 33,970,112 common shares in the public float as of December 14, 2006, until December 19, 2007 or until such earlier date when the Company purchases the maximum allowable number of shares or elects to terminate the bid. All shares purchased will be acquired through the facilities of the TSX and will be cancelled. DRAXIS had 41,492,138 common shares issued and outstanding as of December 14, 2006.

As of October 31, 2007, 130,100 shares were purchased under the 2006 Issuer Bid.

Permax® Litigation

On July 22, 2005 the Company announced that, together with other defendants, it had received a Statement of Claim filed before the Superior Court of Justice of Ontario wherein the plaintiff alleges that Permax®, a drug that the Company distributed in Canada for a third-party manufacturer prior to July 2003, causes “compulsive/obsessive behaviour, including pathological gambling”. The plaintiff is seeking to have this action certified as a class action.  The Company believes this claim against it is without merit and intends to vigorously defend this proceeding and any motion for certification.  Prior to July 2003, Permax® was distributed in Canada by DRAXIS Pharmaceutica, the Canadian pharmaceutical sales and marketing division of the Company. In July 2003 the Company completed the divestiture of the DRAXIS Pharmaceutica division to Shire. No provisions have been taken pursuant to this claim.

A status notice received from the Superior Court of Justice of Ontario on August 16, 2007 states that the plaintiffs have not moved this case forward and therefore the plaintiffs have 90 days to put the matter back on track or it will be automatically dismissed.

Retirement of President and Chief Executive Officer

Subsequent to the third quarter of 2007, on October 31, 2007 the Company announced that Dr. Martin Barkin informed the board of directors that he will retire as the President and Chief Executive Officer of the Company effective December 31, 2007. With Dr. Barkin’s impending retirement, Dan Brazier, presently Chief Operating Officer, will immediately take on the roles and responsibilities currently held by Dr. Barkin until a successor is appointed as President and Chief Executive Officer.

 

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This excerpt taken from the DRAX 6-K filed Aug 9, 2007.

Corporate Matters

Streamlining of Executive Leadership

Following the end of the second quarter of 2007, the Company made senior level organization changes designed to further streamline the leadership of its organization and better reflect the core operating businesses in Montreal. Effective July 21, 2007, Mr. Jean-Pierre Robert assumed the role of President of

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DSPI, the Company’s wholly owned operating subsidiary that provides products in three categories; sterile products, non-sterile products and radiopharmaceutical products. Previously Mr. Robert was President of DRAXIMAGE, the division of DSPI that produces and markets its own radiopharmaceutical products. Mr. Robert now has responsibility for DRAXIS Pharma, the contract manufacturing division of DSPI, which produces sterile and non-sterile products for clients in the pharmaceutical and biotechnology sectors.

In addition, the Office of the President was established at the corporate level and will include Dr. Martin Barkin, President and Chief Executive Officer of DRAXIS Health Inc., together with Mr. Dan Brazier, Chief Operating Officer. Within the Office of the President, Dr. Barkin and Mr. Brazier will retain their current responsibilities. Mr. Robert, as President of DSPI, will report to Mr. Brazier.

Mr. John Durham left the Company effective July 20, 2007 to pursue other interests.

Normal Course Issuer Bid

The Company received approval from the TSX on December 18, 2006 for the renewal of its Normal Course Issuer Bid (the “2006 Issuer Bid”). DRAXIS may now repurchase up to 3,397,011 of its common shares, which represents 10% of the 33,970,112 common shares in the public float as of December 14, 2006, beginning on December 20, 2006 and until December 19, 2007 or until such earlier date when the Company purchases the maximum allowable number of shares or elects to terminate the bid. All shares purchased will be acquired through the facilities of the TSX and will be cancelled. DRAXIS had 41,492,138 common shares issued and outstanding as of December 14, 2006.

As of August 8, 2007, no shares were purchased in accordance with the 2006 Issuer Bid.

Permax® Litigation

On July 22, 2005 the Company announced that, together with other defendants, it had received a Statement of Claim filed before the Superior Court of Justice of Ontario wherein the plaintiff alleges that Permax®, a drug that the Company distributed in Canada for a third-party manufacturer prior to July 2003, causes “compulsive/obsessive behaviour, including pathological gambling”. The plaintiff is seeking to have this action certified as a class action. The Company believes this claim against it is without merit and intends to vigorously defend this proceeding and any motion for certification. Prior to July 2003, Permax® was distributed in Canada by DRAXIS Pharmaceutica, the Canadian pharmaceutical sales and marketing division of the Company. In July 2003 the Company completed the divestiture of the DRAXIS Pharmaceutica division to Shire. No amounts have been accrued pursuant to the claim.

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This excerpt taken from the DRAX 6-K filed May 9, 2007.

Corporate Matters

Normal Course Issuer Bid

The Company received approval from the TSX on December 18, 2006 for the renewal of its Normal Course Issuer Bid (the “2006 Issuer Bid”). DRAXIS may now repurchase up to 3,397,011 of its common shares, which represents 10% of the 33,970,112 common shares in the public float as of December 14, 2006, beginning on December 20, 2006 and until December 19, 2007 or until such earlier date when the Company purchases the maximum allowable number of shares or elects to terminate the bid. All shares purchased will be acquired through the facilities of the TSX and will be cancelled. DRAXIS had 41,492,138 common shares issued and outstanding as of December 14, 2006.

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As of May 8, 2007, no shares were purchased in accordance with the 2006 Issuer Bid.

Permax® Litigation

On July 22, 2005 the Company announced that, together with other defendants, it had received a Statement of Claim filed before the Superior Court of Justice of Ontario wherein the plaintiff alleges that Permax®, a drug that the Company distributed in Canada for a third-party manufacturer prior to July 2003, causes “compulsive/obsessive behaviour, including pathological gambling”. The plaintiff is seeking to have this action certified as a class action. The Company believes this claim against it is without merit and intends to vigorously defend this proceeding and any motion for certification. Prior to July 2003, Permax® was distributed in Canada by DRAXIS Pharmaceutica, the Canadian pharmaceutical sales and marketing division of the Company. In July 2003 the Company completed the divestiture of the DRAXIS Pharmaceutica division to Shire. No amounts have been accrued pursuant to the claim.

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This excerpt taken from the DRAX 6-K filed Feb 8, 2007.

Corporate Matters

Normal Course Issuer Bid

On December 8, 2005, the Board of Directors of the Company authorized the repurchase for cancellation of up to 3,522,530 of its common shares through a Normal Course Issuer Bid (the “2006 Issuer Bid”), which represented 10% of the public float on December 6, 2005. In accordance with the rules of Toronto Stock Exchange (“TSX”), such purchases could begin on December 15, 2005 and end no later than December 14, 2006. The Company received approval from the TSX on December 18, 2006 to renew its Issuer Bid. DRAXIS may now repurchase up to 3,397,011 of its common shares, which represents 10% of the 33,970,112 common shares in the public float as of December 14, 2006, beginning on December 20, 2006 and ending no later than December 19, 2007 or earlier if the Company purchases the maximum allowable number of shares. All shares purchased will be acquired through the facilities of the TSX and will be cancelled. DRAXIS had 41,492,138 common shares issued and outstanding as of December 14, 2006.

As at February 7, 2007, 788,800 shares had been repurchased and cancelled at an average price of $4.57 (CDN$5.21) since December 15, 2005. Purchases under the Normal Course Issuer Bid are constrained by volume limits under TSX rules and applicable blackout periods.

Permax® Litigation

On July 22, 2005 the Company announced that, together with other defendants, it had received a Statement of Claim filed before the Superior Court of Justice of Ontario wherein the plaintiff alleges that Permax®, a drug that the Company distributed in Canada for a third-party manufacturer prior to July 2003, causes “compulsive/obsessive behaviour, including pathological gambling”. The plaintiff is seeking to have this action certified as a class action. The Company believes this claim against it is without merit and intends to vigorously defend this proceeding and any motion for certification. Prior to July 2003, Permax® was distributed in Canada by DRAXIS Pharmaceutica, the Canadian pharmaceutical sales and marketing division of the Company. In July 2003 the Company completed the divestiture of the DRAXIS Pharmaceutica division to Shire. No amounts have been accrued pursuant to the claim.

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This excerpt taken from the DRAX 6-K filed Nov 2, 2006.

Corporate Matters

Normal Course Issuer Bid

On December 8, 2005, the Board of Directors of the Company authorized the repurchase for cancellation of up to 3,522,530 of its common shares through a Normal Course Issuer Bid (the “Issuer Bid”), which represented 10% of the public float on December 6, 2005.  In accordance with the rules of Toronto Stock Exchange (“TSX”), such purchases may be made beginning on December 15, 2005 and ending no later than December 14, 2006.

As at November 1, 2006, 788,800 shares had been repurchased and cancelled at an average price of $4.57 (CDN$5.21).  The Company did not repurchase or cancel any shares during the third quarter of 2006. Purchases under the Issuer Bid were constrained by volume limits under TSX rules and applicable blackout periods.

Permax® Litigation

On July 22, 2005 the Company announced that, together with other defendants, it had received a Statement of Claim filed before the Superior Court of Justice of Ontario wherein the plaintiff alleges that Permax®, a drug that the Company distributed in Canada for a third party manufacturer prior to July 2003, causes “compulsive/obsessive behaviour, including pathological gambling”. The plaintiff is seeking to have this action certified as a class action.  The Company believes this claim against it is without merit and intends to vigorously defend this proceeding and any motion for certification.  Prior to July 2003, Permax® was distributed in Canada by DRAXIS Pharmaceutica, the Canadian pharmaceutical sales and marketing division of the Company. In July 2003 the Company completed the divestiture of the DRAXIS Pharmaceutica division to Shire. No amounts have been accrued pursuant to the claim.

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This excerpt taken from the DRAX 6-K filed Aug 11, 2006.

Corporate Matters

 

Normal Course Issuer Bid

 

On December 8, 2005, the Board of Directors of the Company authorized the repurchase for cancellation of up to 3,522,530 of its common shares through a Normal Course Issuer Bid (the “Issuer Bid”), which represented 10% of the public float on December 6, 2005. In accordance with the rules of Toronto Stock Exchange (“TSX”), such purchases may be made beginning on December 15, 2005 and ending no later than December 14, 2006.

 

As at August 9, 2006, 323,400 shares had been repurchased and cancelled at an average price of $4.44 (CDN$5.11). The Company spent $541,000 on the repurchase and cancellation of 124,200 shares during the second quarter of 2006. Purchases under the Issuer Bid were constrained by volume limits under TSX rules and applicable blackout periods.

 

Permax® Litigation

 

On July 22, 2005 the Company announced that, together with other defendants, it had received a Statement of Claim filed before the Superior Court of Justice of Ontario wherein the plaintiff alleges that Permax®, a drug that the Company distributed in Canada for a third party manufacturer prior to July 2003, causes “compulsive/obsessive behaviour, including pathological gambling”. The plaintiff is seeking to have this action certified as a class action. The Company believes this claim against it is without merit and intends to vigorously defend this proceeding and any motion for certification. Prior to July 2003, Permax® was distributed in Canada by DRAXIS Pharmaceutica, the Canadian pharmaceutical sales and marketing division of the Company. In July 2003 the Company completed the divestiture of the DRAXIS Pharmaceutica division to Shire. No amounts have been accrued pursuant to the claim.

 

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This excerpt taken from the DRAX 6-K filed May 11, 2006.

Corporate Matters

 

Normal Course Issuer Bid

 

On December 8, 2005, the Board of Directors of the Company authorized the repurchase for cancellation of up to 3,522,530 of its common shares through a Normal Course Issuer Bid (the “Issuer Bid”), which represented 10% of the public float on December 6, 2005.  In accordance with the rules of Toronto Stock Exchange (“TSX”), such purchases may be made beginning on December 15, 2005 and ending no later than December 14, 2006.

 

As at May 10, 2006, 323,400 shares had been repurchased and cancelled at an average price of $4.44 (CDN$5.11).

 

Permax® Litigation

 

On July 22, 2005 the Company announced that, together with other defendants, it had received a Statement of Claim filed before the Superior Court of Justice of Ontario wherein the plaintiff alleges that Permax®, a drug that the Company distributed in Canada for a third party manufacturer prior to July 2003, causes “compulsive/obsessive behaviour, including pathological gambling”. The plaintiff is seeking to have this action certified as a class action.  The Company believes this claim against it is without merit and intends to vigorously defend this proceeding and any motion for certification.  Prior to July 2003, Permax® was distributed in Canada by DRAXIS Pharmaceutica, the Canadian pharmaceutical sales and marketing division of the Company. In July 2003 the Company completed the divestiture of the DRAXIS Pharmaceutica division to Shire. No amounts have been accrued pursuant to the claim.

 

This excerpt taken from the DRAX 20-F filed Mar 31, 2006.

CORPORATE MATTERS

 

Appointment of Chief Operating Officer (COO)

 

On October 4, 2005, the Company announced that it named Dan Brazier, formerly Senior Vice President, Corporate Development and Strategic Planning, as COO of the Company. Mr. Brazier assumes responsibilities for the day-to-day operations across the Company and reports to Dr. Martin Barkin, President and Chief Executive Officer.

 

The creation of the COO position is the result of the growth of the Company’s operations in scope requiring a senior executive dedicated to overseeing operating efficiency and profitability as well as customer service.

 

Normal Course Issuer Bid

 

On December 8, 2005, the Board of Directors of the Company authorized the repurchase for cancellation of up to 3,522,530 of its common shares through a Normal Course Issuer Bid (the “Issuer Bid”), which represented 10% of the public float on December 6, 2005.  In accordance with the rules of The Toronto Stock Exchange (“TSX”), such purchases may be made beginning on December 15, 2005 and ending no later than December 14, 2006.

 

As at February 28, 2006, 171,400 shares had been repurchased and cancelled at an average price of CDN$5.15.

 

Permax® Litigation

 

On July 22, 2005, we announced that, together with other defendants, we had received a Statement of Claim filed before the Superior Court of Justice of Ontario alleging that Permax®, a drug that we distributed in Canada for a third party manufacturer prior to July 2003, causes “compulsive/obsessive behaviour, including pathological gambling”. The plaintiff is seeking to have this action certified as a class action.  We believe this claim against us is without merit and intend to vigorously defend this proceeding and any motion for certification.  Prior to July 2003, Permax® was

 

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distributed in Canada by DRAXIS Pharmaceutica, our Canadian pharmaceutical sales and marketing division. In July 2003, we sold the DRAXIS Pharmaceutica division to Shire.  No amounts have been accrued pursuant to the claim.

 

DRAXIS Added to the NASDAQ Biotechnology Index® and the NASDAQ Health Care Index®

 

On May 23, 2005, DRAXIS Health was added to the NASDAQ Biotechnology Index® and on July 27, 2005, DRAXIS Health was added to the NASDAQ Health Care Index®.

 

Disclosure Controls and Procedures

 

As of December 31, 2005, an evaluation was carried out, under the supervision of and with the participation of management, including the President and Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as defined in Multilateral Instrument 52-109.  Based on that evaluation, the President and Chief Executive Officer and the Chief Financial Officer concluded that the design and operation of these disclosure controls and procedures were effective, in accordance with the requirements of Multilateral Instrument 52-109.

 

This excerpt taken from the DRAX 6-K filed Feb 9, 2006.

Corporate Matters

 

Appointment of Chief Operating Officer (COO)

 

On October 4, 2005, the Company announced that it named Dan Brazier, formerly Senior Vice President, Corporate Development and Strategic Planning, as COO of the Company. Mr. Brazier assumes responsibilities for the day-to-day operations across the Company and reports to Dr. Martin Barkin, President and Chief Executive Officer.

 

The creation of the COO position is the result of the growth of the Company’s operations in scope requiring a senior executive dedicated to overseeing operating efficiency and profitability as well as customer service.

 

Normal Course Issuer Bid

 

On December 8, 2005, the Board of Directors of the Company authorized the repurchase for cancellation of up to 3,522,530 of its common shares through a Normal Course Issuer Bid (the “Issuer Bid”), which represented 10% of the public float on December 6, 2005.  Pursuant to the acceptance by The Toronto Stock Exchange of the Notice of Intention filed pursuant to the Issuer Bid, such purchases may be made beginning on December 15, 2005 and ending no later than December 14, 2006.

 

As at February 8, 2006, 113,000 shares had been repurchased and cancelled at an average price of $4.39.

 

Permax® Litigation

 

On July 22, 2005 the Company announced that, together with other defendants, it had received a Statement of Claim filed before the Superior Court of Justice of Ontario wherein the plaintiff alleges that Permax®, a drug that the Company distributed in Canada for a third party manufacturer prior to July 2003, causes “compulsive/obsessive behaviour, including pathological gambling”. The plaintiff is seeking to have this action certified as a class action.  The Company believes this claim against it is without merit and intends to vigorously defend this proceeding and any motion for certification.  Prior to July 2003, Permax® was distributed in Canada by DRAXIS Pharmaceutica, the Canadian pharmaceutical sales and marketing division of the Company. In July 2003 the Company completed the divestiture of the DRAXIS Pharmaceutica division to Shire.

 



 

This excerpt taken from the DRAX 6-K filed Nov 3, 2005.

Corporate Matters

 

Appointment of Chief Operating Officer (COO)

 

On October 4, 2005, the Company announced that it named Dan Brazier, formerly Senior Vice President, Corporate Development and Strategic Planning, as COO of the Company. Mr. Brazier assumes responsibilities for the day-to-day operations across the Company and reports to Dr. Martin Barkin, President and Chief Executive Officer.

 

The creation of the COO position is the result of the growth of the Company’s operations in scope requiring a senior executive dedicated to overseeing operating efficiency and profitability as well as customer service.

 

Permax®, Litigation

 

On July 22, 2005 the Company announced that, together with other defendants, it had received a Statement of Claim filed before the Superior Court of Justice of Ontario wherein the plaintiff alleges that Permax®, a drug that the Company distributed in Canada for a third party manufacturer prior to July 2003, causes “compulsive/obsessive behaviour, including pathological gambling”.  The plaintiff is seeking to have this action certified as a class action.  The Company believes this claim against it is without merit and intends to vigorously defend this proceeding and any motion for certification.  Prior to July 2003, Permax® was distributed in Canada by DRAXIS Pharmaceutica, the Canadian pharmaceutical sales and marketing division of the Company. In July 2003 the Company completed the divestiture of the DRAXIS Pharmaceutica division to Shire.

 

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This excerpt taken from the DRAX 6-K filed Aug 11, 2005.

Corporate Matters

 

Draxis CEO named Finalist for Ernst & Young Entrepreneur Of The Year® 2005 awards

 

Dr. Martin Barkin, President and Chief Executive Officer of the Company, has been named a finalist for the Ernst & Young Entrepreneur Of The Year® 2005 awards. Dr. Barkin was selected by an independent judging panel as one of four finalists in the health sciences business category in the Québec region.

 

The Entrepreneur Of The Year awards honour entrepreneurs who have demonstrated excellence and extraordinary success in areas such as innovation, risk taking, company development, financial performance and personal commitment to their businesses and communities. Submissions are reviewed by an independent judging panel, which is composed of several distinguished Canadian business leaders and previous award recipients.

 

Permax Litigation

 

On July 22, 2005 the Company announced that, together with other defendants, it had received a Statement of Claim filed before the Superior Court of Justice of Ontario wherein the plaintiff alleges that Permax®, a drug that the Company distributed in Canada for a third party manufacturer prior to July 2003, causes “compulsive/obsessive behaviour, including pathological gambling”.  The plaintiff is seeking to have this action certified as a class action.  The Company believes this claim against it is without merit and intends to vigorously defend this proceeding and any motion for certification.  Prior to July 2003, Permax® was distributed in Canada by Draxis Pharmaceutica, the Canadian pharmaceutical sales and marketing division of the Company. In July 2003 the Company completed the divestiture of the Draxis Pharmaceutica division to Shire.

 

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This excerpt taken from the DRAX 20-F filed Mar 31, 2005.

Corporate Matters

 

Acquisition of Remaining Third-Party Equity Interest in DRAXIS Pharma

 

On April 22, 2004, the Company purchased from SGF its remaining 32.7% minority interest in DRAXIS Pharma.  The purchase price paid for the shares acquired was $9.6 million cash and has been allocated to the fair value of the net assets acquired in accordance with the purchase method of accounting.  With effect from the date of the transaction, the Company’s net income results will include the full contribution to income or full allocation of any losses, if any, related to DRAXIS Pharma.

 

The purchase price paid to SGF is subject to adjustment in limited circumstances involving a change of control of the Company or DRAXIS Pharma or a sale of substantially all of the assets of DRAXIS Pharma prior to April 22, 2005.

 

The transaction was fully funded through an equity financing arrangement which closed concurrently with the acquisition (see Liquidity and Capital Resources - Equity Financing).

 

Share Buyback Program

 

On April 16, 2003 DRAXIS received approval from the Toronto Stock Exchange for a share buyback program (Normal Course Issuer Bid) to repurchase for cancellation up to 1,854,934 common shares, the maximum allowable number, representing 5% of the issued and outstanding common shares at that time.  DRAXIS qualified to begin making purchases of its shares through the facilities of the Toronto Stock Exchange beginning on April 21, 2003. The bid ended on April 20, 2004. In 2003, 50,300 shares were acquired under this program at a weighted average cost of $1.30 per share.  No such shares were acquired in 2004.

 

Executive Management Team Realignment

 

In 2003, the Company announced the realignment of its executive management team to reflect the growing importance of its core operating businesses in Montreal. The significant elements of the realignment, which were effective July 1, 2003, are as follows:

 

              The departure of Jim Garner as Senior Vice President Finance and Chief Financial Officer.

 

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                                          The office of the Chief Financial Officer was assumed by Mark Oleksiw, previously Director of Finance in Montreal. Mr. Oleksiw has over eight years of experience with an international public accounting firm focusing on U.S. and Canadian publicly listed companies, mostly in the life science and high technology industries. In addition, Mr. Oleksiw has three years of experience in external reporting in the telecommunications industry combined with two years of internal audit experience. Mr. Oleksiw has also lectured for seven years at McGill University in the Chartered Accountancy Program and worked closely with the Canadian Institute of Chartered Accountants.

 

                                          The promotion to Senior Vice President, Corporate Development and Strategic Planning of Dan Brazier. Mr. Brazier’s new responsibilities were in addition to his role since 1998 as President of DRAXIS Pharmaceutica. Mr. Brazier played an integral role in maintaining the value of the DRAXIS Pharmaceutica division during the lengthy divestiture process. Mr. Brazier has over 23 years of progressive experience in various marketing and sales management positions covering prescriptions, medical devices, over the counter and retail product categories.

 

                                          The promotion to Vice President Finance of Chien Huang. Mr. Huang provides financial support for a wide range of corporate activities including strategic planning, corporate development and investor relations. Mr. Huang joined DRAXIS in 1998 as Assistant Controller and has served various corporate finance capacities since then.  In addition, Mr. Huang has over eight years of prior experience including positions as a manager of business process re-engineering, senior financial planning and analysis and audit experience with an international accounting firm.

 

Furthermore, in order to provide for further concentration of its support operations with its operating divisions in Montreal, the Company appointed Alida Gualtieri, partner in the Corporate Finance Mergers and Acquisitions group of McCarthy Tétrault LLP’s Montreal offices, to the position of General Counsel and Corporate Secretary.  Ms. Gualtieri replaced Mr. Doug Parker, who left the Company on December 1, 2003 to join an outside law firm.  Ms. Gualtieri is primarily located at the Company’s Montreal offices and has been a member of the Quebec Bar since 1988.

 

Sale of Discontinued Operations

 

On March 31, 2003, the Company amended its License, Distribution and Supply Agreement with Elan to return the Canadian rights for several of Elan’s unapproved neurology products from its DRAXIS Pharmaceutica division in exchange for a cash payment of $6.5 million.

 

On July 22, 2003, the Company completed the divestiture of its DRAXIS Pharmaceutica division with the sale to Shire of substantially all of the remaining products of the division. The Company has received $9.6 million in cash from Shire and may receive up to $2.9 million in market driven milestones over the next several years. In addition, the Company will receive royalty payments based on the continuing Canadian sales of the sold products. The Company also received the value of acquired inventories and Shire is now responsible for all financial provisions of the license agreement related to Permax® (see Accounting Matters- Discontinued Operations).

 

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