Labopharm shares sink on approvable letter

Shares of Labopharm got ripped after the Canadian biotech announced that the FDA had issued an approvable letter for its once-daily formulation of the painkiller Tramadol. Labopharm emphasized that it believes it can answer the agency's concerns without having to provide additional data. But uncertainty over the FDA's questions regarding the application soured analysts take on the company's prospects. Investors bailed, sending shares down 25 percent despite Labopharm's reliance on data from six Phase III trials and 12 pharmacokinetic studies.

- here's the report on Labopharm from The Globe and Mail