Exhibit 99.1

Press Release      

FOR IMMEDIATE RELEASE

LABOPHARM’S RESPONSE FOR NOVEL TRAZODONE

FORMULATION ACCEPTED BY FDA AS COMPLETE -

DESIGNATED AS CLASS 2 RESUBMISSION

- New PDUFA action date assigned -

LAVAL, Quebec (August 25, 2009) - Labopharm Inc. (TSX: DDS; NASDAQ: DDSS) today announced the U.S. Food and Drug Administration (FDA) has accepted Labopharm’s response regarding its novel formulation of the antidepressant trazodone as complete and designated it as a Class 2 resubmission.  The FDA has assigned Labopharm a new Prescription Drug User Fee Act (PDUFA) action date of February 11, 2010.

Labopharm received a complete response letter from the FDA on July 17, 2009 indicating the Company’s new drug application (NDA) for its novel trazodone formulation could not be approved in its present form due to deficiencies following the FDA’s inspection of the manufacturing facility of the active pharmaceutical ingredient (API) supplier, Angelini.  The letter did not raise any efficacy or safety issues.  Angelini submitted an action plan addressing the deficiencies to the FDA on July 24, 2009.

Labopharm continues to prepare for the commercialization of its novel antidepressant and, pending FDA approval, intends to launch in the U.S. shortly thereafter.

About Labopharm Inc.

Labopharm is an emerging leader in optimizing the performance of existing small molecule drugs using its proprietary controlled-release technologies. The Company's lead product, a unique once-daily formulation of tramadol, is now available in 17 countries around the world, including the U.S., Canada, major European markets and Australia. The Company's second product, a novel formulation of trazodone for the treatment of major depressive disorder, is under regulatory review in the U.S. by the FDA. The Company also has a robust pipeline of follow-on products in both pre-clinical and clinical development. Labopharm's vision is to become an integrated, international, specialty pharmaceutical company with the capability to internally develop and commercialize its own products. For more information, please visit www.labopharm.com.

This press release contains forward-looking statements, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors, including the uncertainties related to the regulatory process in various countries for the approval of the Company's products and the successful commercialization of the products throughout the world  if they are approved. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements.

-30-

For more information, please contact:

At Labopharm Mark D’Souza Senior Vice-President and Chief Financial Officer Tel: (450) 686-0207 At The Equicom Group Jason Hogan Media and Investor Relations Tel:  (416) 815-0700 jhogan@equicomgroup.com   French: Joe Racanelli Tel:  (514) 844-7997 jracanelli@equicomgroup.com