Jul 18 2011
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.