Drugmaker Labopharm To Raise $80.9 Million In Offering

LAVAL, QC, April 28 /PRNewswire-FirstCall/ - Labopharm Inc. (TSX:DDS - News; "Labopharm" or the "Company") today announced the public offering of 11,000,000 of its common shares at a price of US$8.00, representing an increase of 1,000,000 shares from the 10,000,000 shares originally proposed to be offered. The total net proceeds to the Company are expected to be approximately US$80,900,000 million, after deducting underwriting discounts and commissions and estimated offering expenses. In addition, Labopharm has granted the underwriters of the offering an over-allotment option to purchase up to 1,650,000 common shares at the offering price to cover any over- allotments, exercisable at any time until 30 days following closing. If the over-allotment option is exercised in full, total net proceeds to the Company of the offering are expected to be approximately US$93,300,000 million, after deducting underwriting discounts and commissions and estimated offering expenses. The offering is expected to close on May 3, 2006 and is subject to customary closing conditions. The Company's common shares will be traded on the Nasdaq National Market under the symbol "DDSS".

Merrill Lynch & Co. and Banc of America Securities LLC are acting as joint book-running managers for the offering. The co-managers of the offering also include Canaccord Capital Corporation, Leerink Swann & Company, Orion Securities Inc., Dundee Securities Corporation and Westwind Partners Inc. Copies of the supplemented final prospectus may be obtained by contacting Merrill Lynch at 4 World Financial Center, 250 Vesey Street, New York, NY 10080 (telephone: 212-449-1000) or Banc of America Securities at 100 W. 33rd Street, 3rd Floor New York, NY 10001 (telephone: 646-733-4166).

Labopharm plans to use the net proceeds from the offering to support the commercialization of its once-daily tramadol product, to advance development of existing and new product candidates within its product pipeline, and for working capital and other general corporate purposes.

This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Labopharm Inc.

Labopharm Inc. (TSX: DDS - News) is an international, specialty pharmaceutical company focused on the development of drugs incorporating Contramid®, the Company's proprietary advanced controlled-release technology.

This press release contains forward-looking statements, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors, including the successful and timely completion of clinical studies, the uncertainties related to the regulatory process and the commercialization of the drug thereafter. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements.

Source: Labopharm Inc.