Drug developer Labopharm Inc. is eliminating 38 positions, or nearly 30 per cent of its current work force, the Montreal-area company announced Tuesday.
The work force reduction is expected to result in $3.8-million per year in savings and a $1.9-million restructuring charge in the first quarter.
The Laval-based company, which produces the antidepressant Oleptro, a formulation of once-daily pain reliever tramadol and tramadol-acetaminophen, said last week that it had launched a strategic review of its options.
Labopharm previously posted a $7.4-million loss, or 10 cents per share, with $8.3-million of revenue from product sales, licensing fees and other sources in the fourth quarter.
For the 2010 financial year, it lost $28.9-million or 42 cents per share with $29.4-million of revenue from all sources. In 2009, it lost $26.1-million or 46 cents per share with $24.6-million of revenue.
The company also announced Tuesday that Sylvain Guenette, a vice-president of the company and its corporate controller, has been appointed chief financial officer.
He succeeds Mark D'Souza, who was promoted to chief executive officer last week with the departure of James Howard-Tripp, who left the company for undisclosed reasons.
Labopharm shares traded at 52 cents on the Toronto Stock Exchange on Tuesday.