Stellar Pharmaceuticals Reports Third Quarter 2010 Financial Results

Stellar Pharmaceuticals Inc. ("Stellar" or "the Company"), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, today announced financial results for the quarter ended September 30, 2010. In this press release, all dollar amounts are expressed in Canadian currency rounded to the nearest hundredth. These results are reported in accordance with United States generally accepted accounting principles (U.S. GAAP).

For the three-month period ended September 30, 2010, Stellar's total revenues from all sources were $2,236,900 as compared to $826,900 in the same period in 2009. The Company noted that total revenues in for the third quarter of 2010, were positively impacted by a milestone payment from Watson Pharma, Inc. of $1,345,200 related to the issuance of the Company's Uracyst(R) high-dose patent in the United States. With respect to product sales, the Company experienced solid growth for all products in the Canadian market as well as strong growth for Uracyst(R) in international markets. International NeoVisc(R) sales, however, declined primarily as a result of a negative economic situation in Eastern Europe. Stellar's net profit for the three-month period ended September 30, 2010 was $1,380,800. This result compares to a profit of $25,900 that was generated in the same period in 2009.

Stellar ended the quarter in a strong financial position, with no debt and working capital of $4,599,100. This amount does not include the gross proceeds of US$1,000,000 from a non-brokered private placement of 1,000,000 Units of the Company that was completed in October 2010. Each unit consists of one Common Share and warrants to purchase up to 1,500,000 additional Common Shares.

Peter Riehl, Stellar's President and Chief Executive Officer, commented, "We entered 2010 with a strong focus on building Canadian sales and expanding global partnerships for our two lead products, Uracyst(R) and NeoVisc(R). By virtually any measure that focus has delivered improved operating performance over the previous year. Now, as we move through the fourth quarter, we will continue to execute our growth strategy while carefully managing our expenses."

Stellar Pharmaceuticals Announces Record First Quarter Financial Results and Profitability

Stellar Pharmaceuticals Inc. (OTCBB: SLXCF: undefined, undefined, undefined%), a Canadian pharmaceutical developer and marketer of high quality, cost effective products for select health care markets, today announced that Stellar finished the period with the highest revenues it has ever reported for a first quarter. Stellar's total revenues for the first quarter increased by 46.5% to $772,500 compared to $527,400 for the same period in 2008. The growth in revenue was strong in all markets, with the more established Canadian market up over 28% and international sales of NeoVisc and Uracyst up 224.4%. International sales have been strengthened with new partners in key European markets for Uracyst. Reorders early in the 2nd quarter from these new licensees is encouraging and increases our expectations for the year.

The strong revenue growth led to Gross profit being up 43.6% for the quarter, which resulted in net income for the period of $25,200 compared to a loss of $98,800 for the same quarter in 2008.

"The results of this quarter and subsequent events leads us to believe that the corporate strategies we have in place are finally showing the results we anticipated." said Peter Riehl, Stellar's President and CEO, " We are very encouraged by these results and look forward to a very productive year ahead."

Stellar Pharmaceuticals Announces a Late Filing of First Quarter Financial Results Due to Change in Auditors

LONDON, ONTARIO - Stellar Pharmaceuticals Inc. (OTCBB: SLXCF), a Canadian pharmaceutical developer and marketer of high quality, cost effective products for select health care markets, today announced that the Stellar has appointed McGovern, Hurley, Cunningham, LLP as its auditors in place of Deloitte & Touche LLP who were Stellar's former auditors and who resigned at Stellar's request. McGovern, Hurley, Cunningham, LLP will also be proposed for re-appointment by the shareholders of Stellar at Stellar's annual meeting to be held on June 17, 2009. The resignation of the former auditor and the appointment of the successor auditor have been approved by both Stellar's audit committee and its board of directors.

The reports of Deloitte on Stellar's financial statements for the fiscal years ended December 31, 2008 and 2007, and for any period subsequent thereto for which an audit report was issued and preceding the date hereof, did not contain any adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. Furthermore, during the fiscal years ended December 31, 2007 and 2008 and through the date of dismissal of Deloitte, there were no "Reportable Events" within the meaning of National Instrument 51-102 of the Canadian Securities Administrators or Item 304(a)(1)(v) of Regulation S-K of the Securities Exchange Act. The company will be filing its change of auditor reporting package on www.sedar.com and www.sec.gov in due course in accordance with applicable securities laws.

It should be noted that this decision was not generated by any dispute related to the first quarter numbers. However, this change will result in a late filing of the Company's first quarter results, which are anticipated to be filed on or about May 29, 2009.

"It is unfortunate that the change of auditor process has taken so long and resulted in a late filing of Stellar's first quarter results. This will delay getting the details of a positive first quarter out to our shareholders," stated Peter Riehl, Stellar's President and CEO, "This is the strongest first quarter in the Company's history, with revenues up substantially in all markets resulting in a significant increase in gross profits. Although the delay is unfortunate, I feel this change will be a positive one for the longer term".

Stellar Pharmaceuticals signs license agreement with Sigmar Italia for Uracyst

Stellar Pharmaceuticals, Inc., a Canada-based developer and marketer of pharmaceutical products, has entered into an exclusive license agreement with Sigmar Italia S.p.A., an Italy-based specialty pharmaceutical sales and marketing company, for the distribution and sale of Uracyst(R) product in Italy. Uracyst(R) is Stellar's proprietary urology product used in the treatment of interstitial cystitis and painful bladder syndrome. 

Under the terms of the agreement, Sigmar would pay Stellar an upfront licensee fee, plus a specified transfer price in exchange for the rights to Uracyst(R).

The agreement has an initial five-year term and might be renewed for an additional three-year term with the mutual agreement of Stellar and EuroCept.

Stellar Pharmaceuticals Inc. Signs Licensing Agreement for Distribution and Sale of Uracyst(R) in Italy

Stellar Pharmaceuticals Inc. ("Stellar") (OTCBB:SLXCF), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, today reported signing a licensing agreement for the distribution and sale of Uracyst(R) in Italy with SIGMAR ITALIA S.p.A. ("Sigmar"), a specialty pharmaceutical sales and marketing company, based in Pero, MI, Italy. Sigmar promotes prescription medicines for urology and orthopedics in Italy. One of Sigmar's major focus areas is urology, and Uracyst(R), Stellar's proprietary product, used in the treatment of interstitial cystitis and painful bladder syndrome, is used mainly by urologists. 

With the approved CE mark for Uracyst(R) already in place for the European market, it is expected that Uracyst should be launched by SIGMAR in the second quarter of 2009. Under the terms of the agreement Sigmar will pay Stellar an upfront licensee fee, plus a specified transfer price in exchange for the rights to an exclusive license for this territory. This agreement has an initial five year term and may be renewed for an additional three year term with the mutual agreement of both parties.

Peter Riehl, Stellar's President and Chief Executive Officer, stated, "We are pleased to enter into this relationship with Sigmar, a company that has a presence in the urology markets in this significant territory which has a population of over 56 million. This agreement adds to the Company's overall growth strategy, to license our proprietary products into the global market place and adds to the other distribution agreements, which Stellar has entered into in respect of other European territories. We look forward to building a successful long-term working relationship with Sigmar."