Tribute Pharmaceuticals Canada 8K Other Events | SLRXF 14 Nov 07

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Contact:

Stellar Pharmaceuticals Inc. -OR-

Seventh Circle Consulting, LLC

Peter Riehl, President & CEO

Christine Petraglia

(800) 639-0643

(646)354-8886

(519) 434-1540

Arnold Tenney, Chairman

(416) 587-3200

Stellar Pharmaceuticals Announces Profitability for 2007 Third Quarter Financial Results

LONDON, ONTARIO--(MARKET WIRE)—November 8, 2007 -- Stellar Pharmaceuticals Inc. (TSX VENTURE:SLX.V -News) (OTCBB:SLXCF.OB -News) ("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 third quarter ended September 30, 2007. All amounts in this press release are in Canadian dollars, rounded to the nearest one hundred dollars and are the result of the use of U.S. generally accepted accounting principles.

Third Quarter 2007 Financial Results and Review

For the three month period ended September 30, 2007 total operating revenues from all sources increased by 43.2% to $615,400 compared to $429,900 in the same period in 2006. Gross profit for the quarter increased 79.1% to $535,000 compared to $298,800 for the same period in 2006. The Company showed a profit for the quarter of $137,500 compared to a loss of $278,800 in the same quarter of 2006.

For the nine month period ended September 30, 2007 total operating revenues from all sources increased 20.8% to $1,589,600 compared to $1,316,100 in the same period of 2006. Gross profit for this nine month period grew by 30.6% to $1,267,500 from $970,500 for the same period in 2006. Stellar’s net loss for the nine month period was reduced by 75.4% to $212,500 compared to a loss of $865,100 in 2006.

NeoVisc sales in Canada grew by 19.9% for the quarter and 10.0% for the nine month period ending September 30, 2007 over the comparable periods for 2006. While international sales for NeoVisc were up 23.9% for the quarter and 90.8% for the nine month period compared to the same periods in 2006. Uracyst sales in Canada grew by 26.8% for the quarter and 19.9% for the nine month period compared to the same periods in 2006.

As previously announced, Stellar’s United States Licensee, Watson Pharmaceuticals is in the process of conducting a Canadian-based, placebo controlled, pilot clinical study in interstitial cystitis patients, which is expected to end in early 2008. The results of this study will be utilized in designing the pivotal Phase III safety and efficacy trial, slated to commence in 2008, the data from which will be submitted to the FDA in support of marketing approval.

Peter Riehl, Stellar’s President & CEO commented, “We are extremely pleased to see the Company profitable for the quarter and moving towards positive cash flow. Stellar has no debt on its balance sheet and over $3 million in cash and cash equivalents, which puts the Company in an excellent position to accelerate future market growth domestically and internationally. Both NeoVisc and Uracyst continue to gain traction in all markets which is exciting given the number of new markets they will be introduced to in the next nine months.” Mr. Riehl added, “Stellar’s global licensing strategy is now starting to show returns and the Company expects future royalty and licensing revenue to become a growing percentage of total revenues.”

About Stellar Pharmaceuticals Inc.

Stellar has developed and is marketing direct in Canada, and in countries around the world through out-license agreements, three 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 an in-licensing agreement for NMP22® BladderChek®, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer.

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations, to attract and retain qualified professionals, technological obsolescence; general economic conditions; and other risks detailed from time to time in the Company's filings.

STELLAR PHARMACEUTICALS INC.

CONDENSED BALANCE SHEETS

(Canadian Funds)


				As at		As at
		ASSETS		Sep/30/07		Dec/31/06
CURRENT
	Cash and cash equivalents		$	3,145,355	$	3,515,193
	Accounts receivable, net of allowance $0 (2005 - $0)			299,434		199,704
	Inventories			219,156		274,597
	Prepaid, deposits and sundry receivables			191,902		55,407
				3,855,847		4,044,901
PROPERTY, PLANT AND EQUIPMENT				827,042		853,818

OTHER ASSETS				55,893		49,691
PROMISSORY NOTE				14,945		-
			$	4,753,727	$	4,948,410
		LIABILITIES
CURRENT
	Accounts payable		$	257,348	$	226,026
	Accrued liabilities			89,825		135,198
	Deferred revenues			11,627		1,500
				358,800		362,724
		SHAREHOLDERS' EQUITY
CAPITAL STOCK
AUTHORIZED
Unlimited Non-voting, convertible, redeemable, and retractable preferred
	shares with no par value
Unlimited Common shares with no par value

ISSUED
23,822,540		Common Shares (2006- 23,819,040)		8,303,054		8,299,554
		Paid-in capital options - outstanding		130,316		513,990
		- expired		605,360		201,322
Accumulated other comprehensive income (loss)				(2,100)		-
DEFICIT				(4,641,703)		(4,429,180)
				4,394,927		4,585,686
			$	4,753,727	$	4,948,410

STELLAR PHARMACEUTICALS INC.

CONDENSED INTERIM STATEMENTS OF OPERATIONS, DEFICITS

AND COMPREHENSIVE INCOME (LOSS)

(Canadian Funds)

(Unaudited)


		For the Three Month				For the Nine Month
		Period Ended September 30				Period Ended September 30
		2007		2006		2007		2006

PRODUCT SALES		399,178	$	332,423	$	1,194,733	$	1,025,903
COST OF GOODS SOLD		80,474		89,175		301,941		303,652
MARGIN ON PRODUCT SOLD		318,704		243,248		892,792		722,251
ROYALTY AND LICENSING REVENUES		216,218		97,445		394,834		290,164
WRITE-DOWN OF OBSOLETE INVENTORY		-		(41,949)		(20,145)		(41,949)
GROSS PROFIT		534,922		298,744		1,267,481		970,466
EXPENSES
	Selling, general and administrative	441,486		491,784		1,451,254		1,571,380
	Research and development	25,662		50,817		83,150		174,310
	Amortization	36,226		38,973		117,285		117,324
		503,374	$	581,574		1,651,689		1,863,014
INCOME (LOSS) FROM OPERATIONS		31,548		(282,830)		(384,208)		(892,548)
INTEREST AND OTHER INCOME		105,929		4,063		172,685		27,410
NET INCOME (LOSS) FOR THE PERIOD		137,477		(278,767)		(212,523)		(865,138)
DEFICIT, beginning of period		(4,779,180)		(6,270,776)		(4,429,180)		(5,684,405)
DEFICIT, end of period		(4,641,703)	$	(6,549,543)	$	(4,641,703)	$	(6,549,543)
OTHER COMPREHENSIVE INCOME (LOSS)
	Foreign currency translation adjustment	(2,100)		-		(2,100)		-
COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD		135,377		(278,767)		(214,623)		(865,138)
EARNINGS (LOSS) PER SHARE		0.01		(0.01)		(0.01)		(0.04)
WEIGHTED AVERAGE NUMBER OF COMMON
	SHARES OUTSTANDING	23,822,540		23,472,690		23,821,232		23,530,318

STELLAR PHARMACEUTICALS INC.

CONDENSED INTERIM STATEMENTS OF CASH FLOWS

(Canadian Funds)

(Unaudited)



				For the Three Month Period				For the Nine Month Period
				Ended September 30				Ended September 30
				2007		2006		2007		2006

CASH FLOWS USED IN OPERATING ACTIVITIES
	Net income (loss) for the period			137,477		(278,767)		(212,523)		(865,138)
	Amortization			36,226		38,973		117,287		117,324
	Issuance of shares and options for services rendered			12,916		22,909		23,865		106,380
				186,619		(216,885)		(71,371)		(641,434)
	Change in non-cash operating assets and liabilities
		Accounts receivable		(86,762)		2,438		(99,730)		(67,198)
		Inventories		2,924		70,733		55,441		77,339
		Prepaid, deposits, and sundry receivables		(128,444)		17,972		(136,495)		67,966
		Promissory note		2,100		-		(14,945)		-
		Accounts payable and accrued liabilities		164,537		(66,745)		(14,051)		(416,272)
		Deferred revenues		11,627		2,400		10,127		(40,997)
				152,601		(190,087)		(271,024)		(1,020,596)
CASH FLOWS USED IN INVESTING ACTIVITIES
		Additions to property, plant and equipment		(80,115)		(32,981)		(89,495)		(59,882)
		Additions to other assets		(5,695)		-		(7,219)		-
				(85,810)		(32,981)		(96,714)		(59,882)
CASH FLOWS USED IN FINANCING ACTIVITIES
		Issuance of common stock		-		-		-		48,900
EFFECT OF FOREIGN EXCHANGE ON CASH				(2,100)				(2,100)
CHANGE IN CASH AND CASH EQUIVALENTS				64,691		(223,068)		(369,838)		(1,080,478)
CASH AND CASH EQUIVALENTS, beginning of period				3,080,672		1,300,245		3,515,193		2,108,755
CASH AND CASH EQUIVALENTS, end of period			$	3,145,355	$	1,077,177	$	3,145,355	$	1,077,177

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