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Labopharm Reports Results for Second Quarter Fiscal 2009
Date:8/7/2009

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Research and development expenses, before research and development tax credits, for the second quarter of fiscal 2009 were $3.2 million compared with $7.0 million for the second quarter of fiscal 2008. The decrease was primarily the result of lower clinical trial costs in the second quarter of fiscal 2009. Research and development tax credits for the second quarter of fiscal 2009 were $0.3 million compared with $0.7 million for the second quarter of fiscal 2008, the result of a decrease in non-refundable Canadian federal tax credits due to a change in tax planning.

Selling, general and administrative expenses for the second quarter of fiscal 2009 were $6.3 million compared with $6.2 million for the second quarter of fiscal 2008. A significant portion of selling, general and administrative expenses for the second quarter of fiscal 2009 was the result of higher costs related to sales and marketing and the accrual for the Company's share of litigation costs incurred by Purdue Pharma to enforce certain of Purdue's U.S. patents related to Labopharm's once-daily tramadol product. These were partially offset by lower costs for consultants and professional services, a reduction in non-cash stock-based compensation and a reduction of tax on capital.

Net loss for the second quarter of fiscal 2009 was $4.9 million, or $0.09 per share, compared with $10.3 million, or $0.18 per share, for the second quarter of fiscal 2008. The decrease in net loss was primarily the result of lower research and development costs, higher gross margin on product sales and a higher foreign exchange gain, which were partially offset by lower interest income in the second quarter of fiscal 2009.

Cash, cash equivalents and marketable securities at June 30, 2009 were $27.9 million compared with $35.9 million at March 31, 2009. The cash, cash equivalents and marketable securities position at June 30, 2009 does not include the Company's Long-Term Notes, received in
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SOURCE Labopharm Inc.
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