UPDATE 1-Labopharm sets U.S. joint venture with Angelini

* Joint venture deal for trazodone worth C$92 million

* U.S. launch scheduled for third quarter (Adds details. In U.S. dollars)

TORONTO, April 29 (Reuters) - Labopharm Inc DDS.TO said on Thursday that it was forming a joint venture with Italy's Grupo Angelini to sell the Canadian drugmaker's trazodone antidepressant in the United States.

Under the deal, Labopharm will receive up to $92 million in payments, with $26 million paid on completion of the transaction and another $26 million as 50 percent ownership interest in the joint venture.

Labopharm is also eligible to receive another $40 million for achieving certain sales milestones.

Earlier this year, the U.S. Food and Drug Administration approved the treatment for use in the United States. It is expected be launched under the name Oleptro during the third quarter. ($1=$1.00 Canadian) (Reporting by Scott Anderson; Editing by Lisa Von Ahn)