LAVAL, QC, Nov. 16 /PRNewswire-FirstCall/ - Labopharm Inc. today announced that through its Labopharm Europe subsidiary, it has signed a licensing and distribution agreement for its once-daily tramadol product for the United Kingdom (UK) with Recordati, a fully integrated European pharmaceutical company. Labopharm’s once-daily tramadol product will become an important product in Recordati’s commercial portfolio in the licensed territory.
“With this agreement, we have access to the third largest European market for tramadol products, and have established marketing partnerships covering almost all of the existing European tramadol market, including the top five countries,” said James R. Howard-Tripp, President and Chief Executive Officer, Labopharm Inc. “Recordati has a defined strategy to build a leading pain medication franchise in the UK and we are proud that our once-daily tramadol will be the flagship product in its analgesic program. We will work diligently with our partner toward a launch in the large and growing UK tramadol market during the first half of 2006.”
Under terms of the agreement, Recordati will have the exclusive right to market and sell Labopharm’s once-daily tramadol product in the UK. Labopharm will provide Recordati with finished packaged product. In return, Labopharm will receive an up front payment and additional payments upon achieving certain milestones. Labopharm will share revenue from product sales, resulting in an effective royalty rate commensurate with those of previous licensing and distribution agreements that Labopharm has entered into for European markets.
The UK, which includes England, Scotland, Wales and Northern Ireland, is the third largest European market for tramadol products by dollar sales. Demand for tramadol products in the UK reached more than US$104 million for the 12 months ended June 2005 and has grown at a compound annual growth rate of 17% over the five preceding 12-month periods. Over the same period, standard unit sales of tramadol products in the UK have grown at a compound annual rate of 21%.
About Recordati
Recordati, established in 1926, is a European pharmaceutical group, listed on the Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271), dedicated to the research, development, manufacturing and marketing of pharmaceuticals, with headquarters in Milan, Italy, operations in the main European countries, and a total staff of over 2,000. A European field force of over 1,000 medical representatives promotes a wide range of innovative pharmaceuticals, both proprietary and under license, in a number of therapeutic areas. Recordati’s current and growing coverage of the European pharmaceutical market makes it a partner of choice for new product licenses from companies which do not have European marketing organizations. Recordati is committed to the research of new drug entities within the cardiovascular and urogenital therapeutic areas in which its research team has proven scientific competence and a track record of discovery and development of original drugs, the most recent of which, lercanidipine, a latest generation calcium channel blocker for the treatment of hypertension, is the company’s leading product. Consolidated revenue for 2004 was (euro) 488.3 million, operating income was (euro) 90.4 million and net income was (euro) 54.0 million.
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, has received regulatory approval in 22 European countries. In the U.S., where the Company is planning to file an NDA for once-daily tramadol before the end of 2005, it has secured a licensing and distribution agreement with Purdue Pharma 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 Labopharm Europe Limited: Anthony C. Playle,Managing Director, Tel: 011-353-1854-0151, aplayle@labopharm.com; AtFeinstein Kean Healthcare: Harriet Ullman - United States, Media andInvestor Relations, Tel: (617) 577-8110, hullman@fkhealth.com
