Labopharm announces further workforce reduction
LAVAL, QC, July 18, 2011 /CNW/ - Labopharm Inc. (TSX: DDS) today announced that it has further reduced its workforce, eliminating 23 positions. Following the reduction, Labopharm will have 71 employees to support its continuing operations.
"This initiative allows us to further preserve capital while maintaining a core team to support our ongoing business, including our research and development function, as we continue to progress in our strategic review process," said Mark A. D'Souza, President and Chief Executive Officer of Labopharm Inc. "The strategic review remains our top priority and we are encouraged by our progress to date."
The reduction in workforce is expected to result in incremental cost savings of approximately $2.7 million annually. In aggregate, workforce reductions in 2011 are expected to result in costs savings of approximately $6.5 million annually. The Company will incur a restructuring charge related to the reduction in workforce of approximately $0.5 million.
As previously announced, in March of this year the Company's board of directors and management team initiated a complete review of the business, including consideration of all available strategic options, with the objective of maximizing value for shareholders. There can be no assurance, however, that the strategic review will result in any specific transaction.
About Labopharm Inc.
Labopharm is focused on realizing value from its commercialized products and creating additional value by leveraging its emerging technology platforms to develop increasingly differentiated products. For more information, visit http://www.labopharm.com.
This press release contains forward-looking statements within the meaning of applicable Canadian Securities legislation, which reflect the Company's current expectations regarding future events. These forward-looking statements involve risks and uncertainties, many of which are beyond the Company's control. Actual events could differ materially from those projected herein and depend on a number of risks and uncertainties. For additional disclosure regarding these and other risks faced by Labopharm Inc., see the disclosure contained in its public filings with the Canadian Securities Administrators (CSA), available on the Investor Relations section of the Company's website at http://www.labopharm.com/ on the CSA's website at http://www.sedar.com/. Investors are cautioned not to place undue reliance on these forward-looking statements. Unless required by law, the Company undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events, or circumstances or otherwise.For further information: