Revenues halved at Canada's Labopharm

Labopharm of Canada says that revenues for the second quarter endedAugust 31, were C$224,800 ($144,254), down 53.9% compared to the same period last year, while net loss was C$2.1 million, up 90.9%.

R&D costs amounted to $1.4 million, up from around C$840,000, and the firm ended the reporting period with C$10.3 million in cash and investments. It also noted that its burn rate for the first six months of the current fiscal year was C$2.8 million.

The company is confident about the future, however, not least as a result of signing a licensing agreement with Aventis and another pharmaceutical company (whose name was not disclosed) to develop new formulations for one of the Franco-German group's "core strategic brands. "The name of the Aventis drug was not disclosed, but Labopharm did note that the brand had global sales in excess of $650 million last year (Marketletter October 1).