Labopharm Inc. is reviewing its assets for a potential sale or merger as part of the company's continuing restructuring efforts.
The Laval, Que.-based drug developer said Friday that it believes it has the potential to sell the rights to its painkiller called Intellitab as well as the time-release drug technology called polymeric nano-delivery.
The company also plans to look at combining its businesses to create shareholder value, though it has no assurance that either plan will result in a transaction.
The decision comes as Labopharm talks to Gruppo Angelini, its U.S. partner for the antidepressant Oleptro, with the goal of reworking the terms of their agreement.
"Although we continue to believe that Oleptro is a valuable product for the treatment of depression, we feel it is in the company's best interest to come to an agreement with Angelini that allows us to preserve our cash," said president and CEO Mark D'Souza in a release.
The company did not provide any further details on the discussions.
In March, Labopharm announced it was eliminating 38 positions, or nearly 30 per cent of its current work force with the goal of saving $3.8-million per year.
Labopharm has been trying to stop its mounting financial losses. For the 2010 financial year, it lost $28.9-million with $29.4-million of revenue from all sources. In 2009, it lost $26.1-million with $24.6-million of revenue.