Mr. Francois Roberge reports

LSL PHARMA GROUP ANNOUNCES EXCLUSIVE DISTRIBUTION AGREEMENT WITH FERA PHARMACEUTICALS TO ALLEVIATE DRUG SHORTAGE IN U.S. HOSPITALS

LSL Pharma Group Inc. has entered into an exclusive agreement with Fera Pharmaceuticals LLC, a U.S. specialty pharmaceutical company, to provide erythromycin ophthalmic ointment USP (five milligrams/gram) for the treatment of newborns in U.S. hospitals.

Given the scarcity of erythromycin ophthalmic ointment south of the border, the U.S. Food and Drug Administration (FDA) granted Fera temporary discretion to import this vital medication used in the prevention of gonococcal ophthalmia neonatorum. The agreement essentially focuses on fulfilling the need in the one-gram tube market.

Under the terms of the agreement, LSL Pharma Group, via its manufacturing subsidiary Steri-Med Pharma Inc., could initially supply up to 25 per cent of the four million doses required annually in the U.S. hospital market. More erythromycin ophthalmic ointment may become available if the drug shortage persists.

"LSL Pharma Group is pleased to respond to this urgent health care need by making our eye medication readily available to the U.S. market," stated Francois Roberge, president and chief executive officer of LSL Pharma Group. "The priority, after all, is safeguarding the health and well-being of vulnerable newborns. This opportunity is a testament to the solid reputation that Steri-Med is gaining in the global market for sterile ophthalmic medications. We hope that this collaboration will go a long way in meeting patient needs today and opening new doors for the future."

"We appreciate the collaboration with FDA and Steri-Med in order to ensure adequate supply in the U.S. of this important product," said Frank DellaFera, president and chief executive officer of Fera.

About LSL Pharma Group Inc.

LSL Pharma Group is a Canadian integrated pharmaceutical company specializing in the development, manufacturing and distribution of high-quality natural health products and dietary supplements in solid dosage forms, as well as high-quality sterile ophthalmic pharmaceutical products.

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