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Labopharm Reports Results for Third Quarter Fiscal 2007
Date:11/9/2007

- Quarter Highlighted by Continued Momentum in Global Commercialization Program for Once-Daily Tramadol and Completion of Enrolment for Once-Daily

Trazodone Phase III Study -

LAVAL, QC, Nov. 9 /PRNewswire-FirstCall/ - Labopharm Inc. (TSX: DDS; NASDAQ: DDSS) today reported its results for the third quarter of fiscal 2007, ended September 30, 2007. All figures are in Canadian dollars unless otherwise stated.

Recent Developments

Once-Daily Tramadol Global Commercialization Program

Sales of Labopharm's once-daily tramadol product for the third quarter of fiscal 2007 increased to $2.8 million from $1.1 million for the third quarter of fiscal 2006, the result of product shipments to a larger number of markets in the third quarter of fiscal 2007, as well as higher average selling prices in the third quarter of fiscal 2007, primarily due to the launch of the product in Canada, where selling prices are higher than in Europe. Once-daily tramadol sales for the first nine-months of fiscal 2007 increased to $10.4 million from $4.0 million for the same period of fiscal 2006. Adjusted gross margin for the third quarter and first nine months of fiscal 2007 increased to 56% and 50%, respectively, from 37% and 44% for the corresponding periods in 2006.

"While our quarterly product revenue will continue to fluctuate with the timing of orders typically associated with the early stages of product launches, our once-daily tramadol product is steadily achieving penetration of our target market(1) in Europe with our market share(2) reaching almost 4% in September," said James R. Howard-Tripp, President and Chief Executive Officer, Labopharm Inc. "Our product has met with particular success in Spain, where it achieved a market share in September of almost 14%. We are confident that we can achieve similar results in other markets as we continue to address the initial challenges in some of those countries."

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