DRAXIS Renews Production Agreement With Pfizer Consumer Healthcare Canada

September 1, 2005

Applied Clinical Trials

The new 3-year manufacturing and supply agreement is effective as of January 1, 2005.

MISSISSAUGA, ON – Sept. 1 – DRAXIS Health Inc. (TSX: DAX) (Nasdaq: DRAX) has renewed the production outsourcing agreement between itscontract manufacturing division and Pfizer Canada Inc., Pfizer ConsumerHealthcare division. The new 3-year manufacturing and supply agreement iseffective as of January 1, 2005. DRAXIS Pharma, a division of DRAXIS Specialty Pharmaceuticals Inc., will continue to produce several non-prescriptionproducts as one of a select number of approved suppliers to Pfizer ConsumerHealthcare Canada.

Since early 2000, DRAXIS Pharma has provided production outsourcingservices from its Montreal-based pharmaceutical contract manufacturingfacility for a range of Pfizer Consumer Healthcare products for the Canadianmarketplace, including Polysporin™, Sudafed™, Actifed™ and Zincofax™.

"We have enjoyed a long and mutually-beneficial relationship with PfizerConsumer Healthcare in Canada and we look forward to continuing this specialassociation with them under this renewed contract," said Dr. Martin Barkin,President and Chief Executive Officer of DRAXIS Health.

Draxis Pharma operates a fully integrated 247,000 square-foot cGMPmanufacturing facility in Montreal, Canada. Operations include sterile andnon-sterile processing, lyophilization, packaging and warehousing capabilitiessupported by an experienced quality team. Products manufactured at DraxisPharma are sold in over 100 countries and include sterile injectables andointments, sterile lyophilized products, non-sterile ointments, creams andliquids as well as solid oral dosage forms. Expanded lyophilization capacitycame on line in early 2005.

About DRAXIS Health Inc.

DRAXIS Health, through its wholly owned operating subsidiary, DRAXISSpecialty Pharmaceuticals Inc., provides products in three categories. Sterileproducts include liquid and freeze-dried (lyophilized) injectables plussterile ointments and creams. Non-sterile products are produced as solid oraland semi-solid dosage forms. Radiopharmaceuticals are used for boththerapeutic and diagnostic molecular imaging applications. Pharmaceuticalcontract manufacturing services are provided through the DRAXIS Pharmadivision and radiopharmaceuticals are developed, produced, and sold throughthe DRAXIMAGE division. DRAXIS Specialty Pharmaceuticals Inc. employs over 500staff in its Montreal facility.

For additional information please visit www.draxis.com.

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