Mr. Sylvain Chretien reports

PEDIAPHARM ANNOUNCES RESULTS OF AGM AND DIRECTOR CHANGES

Pediapharm Inc. has released the results of its recent annual general meeting of shareholders, which was held on Sept. 22, 2017. Shareholders approved the size of the board of directors of the company, the election of each director nominee, the appointment of PricewaterhouseCoopers LLP, chartered accountants, as the auditor of the company and the ratification of the company's stock option plan.

Changes in directors

Pierre Desormeau did not stand for re-election as a director of the company to pursue other matters. The board would like to thank Mr. Desormeau for his invaluable contribution to the success of Pediapharm since it was founded and wish him well in his future endeavours.

Benoit Gravel was elected to the board for the first time. Mr. Gravel began his career as an economist in the energy and transportation industries in Canada with Hydro-Quebec and VIA Rail. He joined the pharmaceutical industry 30 years ago at Rhone-Poulenc in Montreal as director, corporate planning and business development. He spent three years in Paris in global business development and returned to Canada as vice-president, external affairs, vice-president, finance, and president. At the creation of Aventis, he was appointed vice-president, commercial affairs. After a merger with Sanofi, he held several commercial executive positions in Canada, his last Canadian position being vice-president, diabetes and specialized care patient centred unit. His last assignment with Sanofi before retirement was vice-president, global portfolio management and strategic development, based in Prague, Czech Republic, in the global generics division. Mr. Gravel has a bachelor and master degree in economics from University of Montreal.

The board has approved the grant of 100,000 stock options to Mr. Gravel. The options were issued with an exercise price of 30 cents per share and have a term of 10 years. In addition, the options have vesting provisions such that they vest over two years.

The option grant is subject to regulatory and TSX Venture Exchange approval.

About Pediapharm Inc.

Pediapharm is the only Canadian specialty pharmaceutical company dedicated to serving the needs of the pediatric community. Its mission is to bring to the Canadian market the latest innovative pediatric products with the objective to improve the health and the well-being of children in Canada. Since its debut in 2008, Pediapharm has entered into numerous commercial agreements with partners from Canada and other countries around the world. The company's innovative product portfolio includes NYDA, a breakthrough treatment for head lice; EpiCeram, a non-steroid emulsion for eczema; naproxen suspension, indicated to treat pain and inflammation due to various conditions, including juvenile idiopathic arthritis; Rupall, an innovative new allergy medication with a unique mode of action; Otixal, the first and only antibiotic and steroid combination eardrop available in single, sterile, preservative-free and unit-dose packaging; and Cuvposa, for severe drooling, which is under review with Health Canada.