LAVAL, QC, Aug. 8 /PRNewswire-FirstCall/ - Labopharm Inc. (TSX: DDS; NASDAQ: DDSS) today reported its results for the second quarter ended June 30, 2008. All figures are in Canadian dollars unless otherwise stated.
Advertisement
"We are seeing positive trends emerge for our once-daily tramadol product highlighted by steady growth of in-market sales, steady growth in market share, and sequential quarterly growth in our reported product sales," said James R. Howard-Tripp, President and Chief Executive Officer, Labopharm Inc. "At the same time, we are continuing to advance the development of follow-on programs toward our goal of commercializing multiple products. We are in the final stages of preparation of the New Drug Application for the most advanced program in our pipeline, a novel antidepressant containing trazodone that we believe could address a significant unmet need in the treatment of depression. We are also progressing in our development of other unique pain products, including a twice-daily formulation of tramadol-acetaminophen, the Phase III clinical study for which we expect to complete this year, as well as our misuse prevention platform, for which we are preparing to initiate pharmacokinetic studies on two of the most widely misused pain drugs."
Advertisement
Financial Summary
Revenue from product sales of Labopharm's once-daily tramadol for the second quarter of fiscal 2008 was $3.9 million compared with $4.1 million for the second quarter of fiscal 2007. Sales of the Company's once-daily tramadol to end users ("in-market sales") for Europe(1) experienced strong growth with standard unit sales for the first five months of 2008 growing at an annualized rate of 72%. Gross margin for the second quarter of fiscal 2008 increased to 56% from 46% for the second quarter of fiscal 2007. The second quarter of fiscal 2007 excludes a $1.7 million provision for once-daily tramadol pre-launch inventory and related deposits to manufacturers. Research and development and selling, general and administrative expenses for the second quarter of fiscal 2008 were $12.4 million compared with $11.7 million for the second quarter of fiscal 2007. Net loss for the second quarter of fiscal 2008 was $10.1 million, or $0.18 per share, compared with $11.0 million, or $0.19 per share, for the second quarter of fiscal 2007.
Recent Developments
Once-Daily Tramadol Global Commercialization Program
Product Continues to Steadily Gain Market Share - Labopharm's product continues to steadily gain market share in Europe and Canada as evidenced by May 2008 data. Overall share of the European(2) tramadol market(3) continued to exhibit solid growth. Moreover, Labopharm's product moved into the number one position in the once-daily segment of the market with a 45% share. Growth continues to be particularly strong in France, where the product's share of the tramadol market(3) reached 7.3%. In Canada, sequential monthly growth in the number of prescriptions for the Company's product averaged 25% in March, April and May 2008 and the product's share of the tramadol market increased to 17.5%.
Both the European and Canadian markets for tramadol products continue to grow, with standard unit sales in Europe growing at a compound annual rate of 12% over the last five years and the number of prescriptions in Canada increasing by an average of 13% per month over the period of January to May 2008.
Product Launched in Four Additional Countries - Labopharm's product was launched in South Korea under the brand name TramaConti CR(R), in Australia under the brand name Durotram XR(R), in Austria and Romania under the brand name Noax(R) Uno. The launches bring the total number of countries in which the product is being sold to 14, representing almost 55% of the global market(4) for tramadol products.
Reacquired Sales and Marketing Rights for UK - La
