NEWS RELEASE TRANSMITTED BY CCN NEWSWIRE FOR: LABOPHARM INC. TSE SYMBOL: DDS SEPTEMBER 20, 2001 Labopharm Signs Global Licensing Agreement With Aventis Pharma LAVAL, QUEBEC-- TO: News directors, assignment editors, journalists and columnists: business and finance news Labopharm Inc. announced today a definitive worldwide licensing agreement with Aventis Pharma (Aventis), and another pharmaceutical company whose name was not disclosed, to develop, globally, new formulations for one of Aventis's core strategic brands that incorporates Labopharm's controlled release technology, Contramid(R). The brand had global annual sales for the year 2000 in excess of US$650 million. Under the terms of the agreement which will last for the life of the patents, Labopharm will receive milestone payments following the successful completion of clinical studies, and royalty payments on product sales for the newly formulated products. With the feasibility and formulation studies successfully completed and initial technology transfer and manufacture of clinical supplies near completion, the clinical studies are planned to begin within the next three months. Aventis has also initiated the process of full technology transfer to a global manufacturing unit in order to prepare for production. In addition, under this agreement, the parties have entered into a further arrangement whereby Labopharm has granted exclusive licenses to Aventis and the other pharmaceutical company to utilize Labopharm technology in a defined therapeutic area. In return, Labopharm has obtained the right to formulate further development compounds for Aventis and the other pharmaceutical company. "Aventis is pleased to enter this collaborative agreement with Labopharm and we look forward to the potential contribution to our business that will hopefully emerge as a result of this project," said Thomas Hofstaetter, Aventis' Senior Vice-President, Corporate Development. "The completion of this agreement offers Labopharm the potential for significant revenues in the foreseeable future," said James Howard-Tripp, President and CEO of Labopharm. "Both Aventis and ourselves are committed to developing these products as rapidly as possible. Feasibility and formulation studies were successfully completed on schedule, proving the viability and efficacy of our controlled release technology, Contramid(R). Moreover, our continued strategic partnership with Aventis may yield additional opportunities for Labopharm," he added. About Aventis Aventis (NYSE: AVE), a world leader in pharmaceuticals and agriculture, is dedicated to improving life through the discovery and development of innovative products. In 2000, Aventis generated group sales of Euros 22.3 billion and employed around 92,500 people in its Pharma and Agriculture businesses. Aventis announced in November 2000 that it intends to focus on pharmaceuticals and plans to divest its activities in agriculture. Aventis was launched in December 1999 through the merger of Hoechst AG of Germany and Rhone-Poulenc SA of France. Corporate headquarters are in Strasbourg, France. For more information about Aventis, please visit www.aventis.com. /T/ About Labopharm Labopharm Product Pipeline and Agreements: In addition to the above mentioned licensing agreement with Aventis and the other pharmaceutical company, key products in Labopharm's pipeline include: * A once-a-day formulation of Tramadol, a chronic pain drug which generates worldwide sales of approximately US $1 billion; * A second major Aventis Pharmaceuticals drug, which cannot be identified for competitive reasons, with significant brand name sales in a multi-billion dollar market; * Xopenex(TM) (levalbuterol HCI), a solid, orally-dosed (tablet) bronchodilator for the treatment of asthma and those who experience chronic obstructive pulmonary disease (COPD), being jointly developed with Sepracor Inc. of Massachusetts; and * Oxybutynin, a urinary incontinence drug in Phase I co-development with an international pharmaceutical company. /T/ Labopharm is an international pharmaceutical company specializing in the development of drugs that deploy an advanced controlled-release technology. Contramid(R), Labopharm's proprietary technology can be applied to a wide variety of drugs in solid, oral dosage form, improving their administration and performance. Labopharm's technology is used to develop products that are either bio-equivalent to existing, branded products or to create newly branded products with greater therapeutic benefits made possible by an improved delivery profile. Labopharm is listed on the Toronto Stock Exchange under the ticker symbol DDS. For more information about Labopharm 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. Conference Call & Live Webcast The Company will hold a conference call on Thursday, September 20, 2001 at 9:00 a.m. (E.S.T.). To access the call, interested participants should dial 416-695-5801 or 800-478-9326. The conference call will also be webcast live at www.labopharm.com and www.financialdisclosure.ca and archived for 90 days. Please connect to the website at least 15 minutes prior to the conference call to ensure adequate download time for any software that may be required to hear the webcast. A telephone re-broadcast of the call will be available until midnight on September 27, 2001. To access the re-broadcast, dial 416-695-5800 or 800-408-3053 and enter the access code 913-941. Minimum requirements to listen to the live broadcast are: a computer with speakers, the RealPlayer software, downloadable free from www.real.com/products/player/index.html, and an active connection to the Internet. If you experience problems listening to the broadcast, go to www.financialdisclosure.ca and click the "test" tab. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Labopharm Inc. James R. Howard-Tripp President and CEO (450) 686-1017 or Nathalie Bourque (514) 843-7171 INDUSTRY: DRG SUBJECT: PAT -0- â -0- Sep/20/2001 10:01 GMT
Labopharm Signs Global Licensing Agreement With Aventis Pharma
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