Stellar Pharmaceuticals Inc, a Canadian pharmaceutical developer and marketer of high quality has signed a licensing agreement with Torrex Chiesi Pharma based in Vienna, Austria in respect of the distribution and sale of NeoVisc®

Stellar Pharmaceuticals Inc, a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, has signed a licensing agreement with Torrex Chiesi Pharma GmbH ("Torrex Chiesi"), based in Vienna, Austria in respect of the distribution and sale of NeoVisc®, a product used for the treatment of osteoarthritis, in Eastern Europe which covers a number of countries, including Austria, Czech Republic, Slovakia, Croatia, Serbia, Montenegro, Macedonia, Bosnia, Herzegovina, Poland, Hungary, Russia and the Commonwealth of Independent States ("CIS").

Stellar has developed and is marketing direct in Canada and in countries around the world through out-license agreements two products based on its core polysaccharide technology: NeoVisc®, for the treatment of osteoarthritis; and Uracyst® and the Uracyst® Test Kit, its patented technology for the diagnosis and treatment of interstitial cystitis (IC), an inflammatory disease of the urinary bladder wall. Stellar also has in-licensing agreements for NMP22® BladderChek®, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer.

Torrex Chiesi has agreed to obtain all necessary regulatory approvals at its sole cost and will pay Stellar an upfront milestone payment 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.

Torrex Chiesi Pharma GmbH, based in Vienna, Austria is a company involved in the marketing and distribution of medical and hospital supplies in Central and Eastern European countries as well as in the CIS countries. Torrex Chiesi is well placed within the medical community and enjoys excellent relationships with doctors, hospitals and medical clinics. Dr. Wolfgang Harrer, Managing Director of Torrex Chiesi, remarked, "NeoVisc® represents an excellent niche opportunity and we are excited to add the product to our portfolio. Torrex Chiesi has a proven distribution network in place and the expertise and personnel resources to successfully launch NeoVisc®."