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Labopharm Reports Results for First Quarter Fiscal 2008
Date:5/8/2008

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Revenue from product sales of Labopharm's once-daily tramadol for the first quarter of fiscal 2008 was $2.2 million compared with $3.4 million for the first quarter of fiscal 2007, with the difference primarily due to the fact that a large majority of revenue for the first quarter of fiscal 2007 consisted of initial launch quantities to new markets. End-user market sales are growing across essentially all markets. Gross margin for the first quarter of fiscal 2008 increased to 56% from 50% for the first quarter of fiscal 2007. Research and development and selling, general and administrative expenses for the first quarter of fiscal 2008 were $10.5 million compared with $9.6 million for the first quarter of fiscal 2007. Net loss for the first quarter of fiscal 2008 was $9.7 million, or $0.17 per share, compared with $6.5 million, or $0.11 per share, for the first quarter of fiscal 2007.

Recent Developments

Once-Daily Tramadol Global Commercialization Program

Product Continues to Gain Market Share - Labopharm's product continues to steadily gain market share in those countries in which it has been launched. In February 2008, overall share of the European(2) tramadol market(1) had grown significantly from December 2007 and penetration of the once-daily segment of the European(2) tramadol market(1) exceeded 41%. Growth in the broader tramadol market(1) was particularly strong in France and Spain, where market share in February 2008 reached 6.8% and 17.4%, respectively. In Canada, the product's share of the tramadol product market increased to 15% in March 2008.

Product Launched in Poland - Labopharm's product was launched in Poland by its marketing partner for that country.

Appealed FDA's Decision to Next Supervisory Level After Additional Analysis Supported Efficacy - Labopharm continued the Formal Dispute Resolution process, appealing the U.S. Food and Drug Administration's (FDA) decision on its once-daily tramadol for
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SOURCE Labopharm Inc.
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