Paladin Labs Announces Proposed Change of Control of ProStrakan

Paladin Labs Announces Proposed Change of Control of ProStrakan and
Further Investment in Pharmaplan 
MONTREAL, CANADA -- (Marketwire) -- 02/22/11 --   Paladin Labs Inc
(TSX: PLB), a leading Canadian specialty pharmaceutical company,
today announced that, in connection with the proposed acquisition of
ProStrakan by Kyowa Hakko Kirin Co., Ltd., it has agreed to accept
repayment of its secured debt facility of GBP 50 million
($77,230,000). Per the terms of the Agreement, Paladin will receive a
payment equivalent to the balance of interest payable for the first
year together with a break free of GBP 2.0 million ($3,089,200).
Moreover, Paladin will retain the rights to the products for Canada
and some select emerging markets, it had licensed in connection with
the Agreement. The acquisition is scheduled to close by early June
2011 and is subject to the approval of ProStrakan's shareholders. 
Further, Paladin has entered into an agreement with Pharmaplan of
South Africa to accelerate the purchase of Pharmaplan shares and
acquire an additional 10% of Pharmaplan in 2011 as opposed to the
original 5%. This will increase Paladin's ownership from 34.99% to
44.99% effective March 1, 2011  
About Paladin Labs Inc.  
Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty
pharmaceutical company focused on acquiring or in-licensing
innovative pharmaceutical products for the Canadian and world
markets. With this strategy, a focused national sales team and proven
marketing expertise, Paladin has evolved into one of Canada's leading
specialty pharmaceutical companies. Paladin's shares trade on the
Toronto Stock Exchange under the symbol PLB. For more information
about Paladin, please visit the Company's web site at 
This press release may contain forward-looking statements and
predictions. These forward-looking statements, by their nature,
necessarily involve risks and uncertainties that could cause actual
results to differ materially from those contemplated by the
forward-looking statements. The Company considers the assumptions on
which these forward-looking statements are based to be reasonable at
the time they were prepared, but cautions that these assumptions
regarding the future events, many of which are beyond the control of
the Company and its subsidiaries, may ultimately prove to be
incorrect. Factors and risks, which could cause actual results to
differ materially from current expectations, are discussed in the
annual report as well as in the Company's Annual Information Form for
the year ended December 31, 2009. The Company disclaims any intention
or obligation to update or revise any forward-looking statements
whether as a result of new information or future events and except as
required by law. For additional information on risks and
uncertainties relating to these forward-looking statements, investors
should consult the Company's ongoing quarterly fillings, annual
report and Annual Information Form and other fillings found on SEDAR
Paladin Labs Inc.
Samira Sakhia, Chief Financial Officer
514-344-4675 (FAX)
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