October 18, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Labopharm Inc. (TSX: DDS) (NASDAQ: DDSS) and Paladin Labs Inc. (TSX: PLB) said they have expanded their commercial relationship through three licensing and distribution agreements under which Paladin will distribute two of Labopharm's products in certain jurisdictions.

In the first agreement, Labopharm has granted Paladin the exclusive right (subject to Labopharm's co-promote right for Canada) to market and sell its Intellitab-based twice-daily formulation of oxycodone-acetaminophen in Canada.

The two companies said they will collaborate on a development plan for the product, which would see Paladin share equally in funding development costs related specifically to meeting Canadian regulatory approval requirements under a finalized plan. In addition, Paladin has a right of first opportunity on a second Intellilab-based pain product for Canada.

According to IMS Canada, the combination oxycodone-acetaminophen market in Canada is valued at over $32 million annually.

In the second and third agreements, Labopharm has granted Paladin the exclusive right to market and sell its Intellitab-based oxycodone-acetaminophen and twice-daily tramadol-acetaminophen in certain countries in Sub-Saharan Africa. Paladin will be responsible for all development and regulatory costs in this region for both products.

Under the terms of all three agreements Labopharm will receive a transfer price on product supply based on a percentage of the anticipated selling price. In addition, Labopharm is eligible to receive up to a combined total of $7.2 million between the three agreements related to the achievement of certain regulatory approval and sales milestones.

As part of the agreements, Paladin will advance Labopharm $10 million against future product supply of Tridural (once-daily tramadol in Canada) to Paladin for distribution in Canada. Labopharm will repay the cash advance through partial credits against future product supplied to Paladin.

The cash advance will bear interest at a rate of 16% per annum and matures on May 1, 2012.

Canada-based Paladin Labs is a specialty pharmaceutical company focused on acquiring or in-licensing pharmaceutical products.

Canada-based Labopharm is focused on optimizing the performance of existing small molecule drugs using its proprietary controlled-release technologies. The company's lead product, a unique once-daily formulation of tramadol, is now available in 19 countries around the world, including the U.S., Canada, European markets, South Korea and Australia.

=========

Equity research on any public company is available through the Shareholders Research Alliance (go to http://www.investrend.com/synd0004 for more information).  Real-time, streaming research for companies and funds mentioned in FinancialWire(tm) news is available via the Investrend Research Syndicate (at http://investrend.stocksmart.com/ss/html/hpcompany.html).  Current valuation analysis research for companies and funds mentioned in FinancialWire(tm) news is available via the Investrend Research Syndicate (at http://www.valuengine.com/rep/searchsrep?pid=42&srchfor=).

FinancialWire(tm) is committed to serving the financial community through true journalism and providing relevant resources to investors. Standards-based, independent equity research on numerous public other companies is available through the Investrend Research Syndicate (http://www.investrend.com/reports) written by FIRST Research Consortium (http://www.investrend.com/FIRST) member-providers. Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). FinancialWire(tm), in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors via the FirstAlert(tm) Network’s “FirstAlert(tm) Daily” (at http://www.financialwire.net/news-alerts/).

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation from subject entities, companies, equities, or representatives thereof, for its news, opinions or distributions. Further disclosure is posted at the FinancialWire(tm) website (at http://www.financialwire.net/disclosures.php and http://www.financialwire.net/2010/04/23/safe-harbor/). Additional resources for investors are also accessible via the FinancialWire(tm) website (at http://www.financialwire.net/2010/04/23/investor-resources/). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Copyright © MMX, FinancialWire(tm); All rights reserved.

[hlmsmlh] [cndnexh] [ndnsndnsndns] [prtnrshpsphs] [nwdlsldw] [biomedphrm] [ftrdnwswnd]

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.