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 for the distribution and sale of one of its lead products, Uracyst (a sterile sodium chondroitin sulfate solution, 2%) for the treatment of interstitial cystitis/painful bladder syndrome (IC/PBS), in South Korea with Jeilmedix Pharmaceutical Co (Jeilmedix).

Stellar markets Uracyst directly in Canada. In addition, Uracyst is currently being distributed in Italy, Belgium, Luxemburg, the Netherlands, Denmark, Sweden, Norway, Finland, Iceland, Turkey, United Kingdom and the Republic of Ireland through out-license agreements. Stellar also has out-license agreements in place for Uracyst in Israel, United States and China - territories currently awaiting regulatory approvals. South Korea has now been added to this list.

Established in 1998, Daegu based Jeilmedix is a major importer of prescription medicines and medical devices from Germany, the United States and Canada into Korea. One of Jeilmedix's major focus areas is urology, the primary target market for Uracyst.

Following the obtainment of regulatory approval for the import and sale of Uracyst by the Korea Food and Drug Administration, it is expected that Jeilmedix will commercially launch the product in the third quarter of 2010. Under the terms of the agreement, Jeilmedix will pay Stellar an upfront licensee fee in addition to a specified transfer price in exchange for the rights to an exclusive license for this territory. The agreement has an initial five-year term and may be renewed for an additional three-year term with the mutual consent of both parties.

Peter Riehl, Stellar's president and chief executive officer, stated, "We are very pleased to be working with Jeilmedix, a company that enjoys a strong presence in this significant territory with a population of over 46 million. This agreement is in keeping with the Company's overall growth strategy – selling direct in Canada and out-licensing our proprietary products into the global marketplace. We look forward to building a successful long-term relationship with Jeilmedix."

Jeilmedix is an importer and distributor specializing in pharmaceutical products and medical devices based in South Korea.

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, its patented technology for treatment of interstitial cystitis/painful bladder syndrome, an inflammatory disease of the urinary bladder wall.