LAVAL, QC, Jan. 30 /PRNewswire-FirstCall/ - Labopharm Inc. today announced that, through its Labopharm Europe subsidiary, it has added a second marketing partnership for its once-daily tramadol product for France, signing a licensing and distribution agreement with Grunenthal GmbH. Under pre- existing agreements, Grunenthal and sanofi-aventis co-market other tramadol products in France. Labopharm also announced that it has finalized its licensing and distribution agreement with sanofi-aventis for its once-daily tramadol product for France.
"The addition of Grunenthal as a second marketing partner will significantly increase the number of representatives marketing our product in France, extending our reach into the largest market for tramadol products in Europe," said James R. Howard-Tripp, President and Chief Executive Officer, Labopharm Inc. "Grunenthal, who first brought tramadol to market in 1977, is one of the largest marketers of tramadol products worldwide and, with 24% market share, is the second largest marketer of tramadol products in France. Sanofi-aventis is the largest marketer of tramadol in France with 64% of the market."
Under the terms of the agreement, Grunenthal has the semi-exclusive right to market and sell Labopharm's once-daily tramadol product in France. Sanofi- aventis has the same semi-exclusive right, under its agreement with Labopharm. Labopharm will provide Grunenthal with finished packaged product and will share revenue from product sales, resulting in an effective royalty rate identical to that which it will receive from sanofi-aventis and commensurate with those of previous licensing and distribution agreements that Labopharm has entered into for other European markets. Total revenue from milestone payments related to Labopharm's partnerships for France will not change as a result of the agreement with Grunenthal.
Grunenthal and sanofi-aventis will launch Labopharm's product in France following pricing approval from the French regulatory authorities. France is the largest market for tramadol products in Europe with sales for the 12-month period ended September 2005 of US$175 million, representing a compound annual growth rate of 23% over the last five years.
Labopharm's once-daily tramadol product received regulatory approval in France and 21 other European countries under the Mutual Recognition Process in 2005. Following receipt of national marketing approval, the product was launched in Germany by Labopharm's marketing partner for that country, HEXAL AG. The Company expects its product to be launched throughout most of Europe in 2006.
About Grunenthal GmbH
Grunenthal is an independent, research-based, pharmaceutical company with international operations and whose products are marketed in more than 80 countries. The company employs approximately 4,800 people worldwide.
About Labopharm Inc.
Labopharm Inc. is an international, specialty pharmaceutical company focused on the development of drugs incorporating Contramid(R), the Company's proprietary advanced controlled-release technology. Labopharm's lead in-house product, a once-daily formulation of the analgesic tramadol, is marketed in Germany and has received regulatory approval in 21 other European countries. In the U.S., the Company's NDA for once-daily tramadol is under review at the FDA and the Company has secured a licensing and distribution agreement with Purdue Pharma Products L.P., the premier marketer of long-acting pain medications in that country. The Company's pipeline includes a combination of in-house and partnered programs with products both in clinical trials and in preclinical development. For more information, please visit www.labopharm.com.
This press release contains forward-looking statements, which reflect the Corporation'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 Corporation'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 Corporation disclaims any obligation to update these forward-looking statements.
Labopharm Inc.CONTACT: At Labopharm Inc., Warren Whitehead, Chief Financial Officer,Tel: (450) 686-1017, ir@labopharm.com; At The Equicom Group, Jason Hogan -Toronto, Investor Relations and Media, Tel: (416) 815-0700,jhogan@equicomgroup.com; At Feinstein Kean Healthcare, Harriet Ullman -United States, Media and Investor Relations, Tel: (617) 577-8110,hullman@fkhealth.com
