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Labopharm Reports Results for Year End and Fourth Quarter Fiscal 2008
Date:2/26/2009

    - Quarter Highlighted by Regulatory Approval of Once-Daily Tramadol in
    the U.S and FDA Acceptance of NDA for Novel Treatment for Depression -

LAVAL, QC, Feb. 26 /PRNewswire-FirstCall/ - Labopharm Inc. (TSX: DDS; NASDAQ: DDSS) today reported its results for the fourth quarter and year ended December 31, 2008. All figures are in Canadian dollars unless otherwise stated.

"With our first product about to be rolled out in the world's largest pharmaceutical market, our second under consideration for regulatory approval by the FDA and our third undergoing a Phase III study, 2009 will be an eventful year with a series of value-driving milestones." said James R. Howard-Tripp, President and Chief Executive Officer, Labopharm Inc.

    Labopharm's key milestone events in 2009 include:
      -  Launch of its once-daily tramadol product in the U.S. during the
         second quarter;
      -  The PDUFA date for its novel trazodone formulation on July 18; and
      -  Results of the Phase III clinical trial for its twice-daily
         tramadol-acetaminophen formulation during the first half of the
         year.

Financial Summary

Revenue from product sales of Labopharm's once-daily tramadol for the fourth quarter of fiscal 2008 increased to $3.3 million from $1.6 million for the fourth quarter of fiscal 2007. Adjusted gross margin for the fourth quarter of fiscal 2008 increased to 51.8% from 43.5% for the fourth quarter of fiscal 2007, primarily due to higher average selling prices. Research and development expenses, net of research and development tax credits, for the fourth quarter of fiscal 2008 were $5.2 million compared with $6.3 million for the fourth quarter of fiscal 2007. Selling, general and administrative expenses for the fourth quarter of fiscal 2008, were $10.6
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SOURCE Labopharm Inc.
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