Labopharm Inc. had a fourth-quarter loss of $11.1-million and $2.4-million in revenues as the drug developer received higher licensing fees and the first sales revenues from its once-daily painkiller drug.
The company also received $30-million in cash related to up front and milestone payments from licensing and distribution agreements, although less than $2-million could be recognized during the quarter as licensing revenue.
Net loss for the fourth quarter of fiscal 2005 amounted to 26 cents per share, compared with $6.6-million, or 16 cents per share, for the fourth quarter of fiscal 2004 when revenue was $1-million.
Research and development expenses (net of tax credits) for the fourth quarter of fiscal 2005 were $7.1-million, up from $4.9-million for the fourth quarter of fiscal 2004, mostly due to U.S. clinical trials.
Montreal-based Labopharm has regulatory approval to sell its once-daily tramadol in the European Union. It has applied to U.S. Food and Drug Administration for U.S. approval, and the FDA agreed in January to review the application, a spokesman for the company said Thursday.
Biovail Corp. of Mississauga, Ont., already has FDA-approved exclusivity for its version of the drug, but the two Canadian companies and their U.S. partners have agreed that Labopharm will be able to seek U.S. approvals.
For fiscal 2005, Labopharm's revenue was $3.2-million compared with $1.4-million for fiscal 2004.
The increase was primarily the result of higher licensing revenue for fiscal 2005, which included recognition of $1.9-million in payments received from Purdue Pharma Products LP, Hexal AG, Gruppo Angelini and Esteve SA.
The increase is also the result of Labopharm's first sales of once-daily tramadol to Hexal AG, which totalled $1.3-million.
© The Globe and Mail
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