Draxis Sells SpectroPharm Dermatology Products Block Drug

Draxis Health Inc. (Mississauga, ON, Canada) has agreed to sell its Spectro line of over-the-counter (OTC) dermatology products to Block Drug Co. Ltd., a subsidiary of Block Drug Co. Inc. (Jersey City, NJ), for $12.5 million (Canadian) plus inventory. Since Draxis got into the OTC dermatology business in 1997, sales have nearly doubled. However, Draxis' board decided last year to focus on prescription drugs and to divest itself of its OTC products. Spectro dermatology products fit much better into Block's OTC and personal care product lines.

Through its Draxis Pharmaceutica division, Draxis specializes in neurology and dermatology products. The firm's neurology portfolio includes Mysoline and Diastat for treating epilepsy; Permax, Novo-Seleguline, and Eldepryl (Parkinson's disease); Alertec (narcolepsy); and Zanaflex (spasticity in multiple sclerosis, stroke, and spinal cord injury). Draxis has filed with Canadian regulatory authorities to market Levulan for actinic keratoses. In addition, Draxis holds exclusive Canadian rights to Hectorol and Levulan photodynamic therapies. Draxis's animal health division has licensed Anipryl to Pfizer Animal Health; its Draximage business unit manufactures radiopharmaceuticals.

The deal with Block includes a five-year manufacturing supply contract and a technical services arrangement. The transaction should close by mid-May, 2000.

For more information: Paul Lee, Draxis, 6870 Goreway Drive, Mississauga, Ontario L4V 1P1, Canada. Tel: 905-677-5500. Fax: 905-677-5502.

Edited by Angelo DePalma