Labopharm Reports Results for Second Quarter F...(he second quarter of 2010. Corpor...),Health

Corporate

Amended Debt Facility Agreement with Hercules - Labopharm amended its debt facility agreement with Hercules Technology Growth Capital, Inc. (NASDAQ: HTGC) to provide more favourable repayment terms by extending the date required to begin repaying the loan to July 1, 2010 from July 1, 2009. The maturity date of the loan has been extended to June 1, 2012 from December 1, 2011.

Entered into Credit Facility with National Bank - Labopharm entered into a three-year $2.6 million revolving credit facility with National Bank of Canada, which the Company drew down in full subsequent to quarter end. The facility is in furtherance of a previously announced agreement with National Bank of Canada to borrow an amount of up to 45% of the principal value of the notes issued to the Company in the context of the restructuring of the Canadian asset-backed commercial paper, which amount the Company can, under certain conditions, repay at maturity by delivering the notes to the bank.

Financial Results

Three-Month Period Ended June 30, 2009

Revenue for the second quarter of fiscal 2009 increased to $6.3 million from $4.9 million for the second quarter of fiscal 2008. During the second quarter, Labopharm shipped its first product to Purdue Pharma in advance of the launch of RYZOLT. Revenue from product sales in all territories for the second quarter of fiscal 2009 increased to $4.8 million from $3.9 million for the second quarter of fiscal 2008. Revenue from product sales to territories other than the U.S. was $3.0 million compared with $3.9 million for the second quarter of fiscal 2008. The decrease was the result of lower sales volumes due to the variable ordering pattern of the Company's licensing and distribution partners from period to period, which were
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