Healthcare Industry News:  Purdue Pharma 

Biopharmaceuticals Licensing Distribution

 News Release - May 9, 2006

Labopharm Enters Into Distribution Agreement with Grunenthal for Once-Daily Tramadol in Belgium

LAVAL, QC, May 9 (HSMN NewsFeed) - Labopharm Inc. (TSX: DDS, NASDAQ: DDSS) today announced that it has signed a licensing and distribution agreement with Grunenthal GmbH for its once-daily tramadol product for Belgium.

"With this agreement, we have now secured marketing partners for 22 European countries, which, combined, account for more than 90% of tramadol product sales in Europe," said James R. Howard-Tripp, President and Chief Executive Officer, Labopharm Inc. "This agreement builds on our relationship with Grunenthal, the original developer of tramadol and one of our two partners for France. Grunenthal is the largest marketer of tramadol products in Belgium with a market share of more than 50%."

Under terms of the agreement, Grunenthal will have the exclusive right to market and sell Labopharm's once-daily tramadol product in Belgium. Labopharm will supply Grunenthal with finished packaged product and will receive revenue from the sale of such finished packaged product at rates commensurate with those of previous licensing and distribution agreements that Labopharm has entered into for other European markets.

About Labopharm Inc.

Labopharm Inc. (TSX: DDS, NASDAQ: DDSS) is an international, specialty pharmaceutical company focused on the development of drugs incorporating Contramid®, the Company's proprietary advanced controlled-release technology. Labopharm's lead 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, a premier marketer of long-acting pain medications. The Company's pipeline includes a combination of proprietary and partnered programs with products both in clinical trials and in preclinical development. For more information, please visit

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.

Source: Labopharm

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