Labopharm Inc. (TSX: DDS; NASDAQ: DDSS) disclosed today that Angelini Labopharm, LLC, its joint venture (JV) with Gruppo Angelini which markets and sells OLEPTRO™ in the United States, has reduced its sales force from 130 to 65 representatives. The sale force reduction is expected to result in approximately US $10.6 million in annual cost savings to Angelini Labopharm.
Labopharm has not provided any funding to Angelini Labopharm since March 2011 and it is in discussions with the objective of restructuring the joint venture agreement with Gruppo Angelini to preserve capital.
As a result of changing circumstances, including very disappointing sales of OLEPTRO™, our once-daily formulation of trazodone, we have recently undertaken a complete review of the business including consideration of all available strategic options. – Labopharm.
Labopharm itself eliminated 38 positions in March 2011.