Angiotech Announces Results for the Second Quarter Ended June 30, 2008



    VANCOUVER, July 28 /CNW/ - Angiotech Pharmaceuticals, Inc. (NASDAQ:   ANPI,
TSX: ANP), a global specialty pharmaceutical and medical device company, today
announced its financial results for the second quarter ended June 30, 2008.
    "Our operating businesses continued to deliver results in the second
quarter, with our Medical Products segment sales exceeding $50 million," said
Dr. William Hunter, President and CEO of Angiotech. "Our various promoted
brands again exhibited strong sales performance in the quarter, and we believe
that we can achieve our full year objectives for sales growth, margin
improvement and new product introductions."

    Significant Recent Developments

    On July 7, 2008, we announced that our Board of Directors authorized a
transaction to establish separate operating and royalty businesses. For
further information, please refer to the preliminary proxy statement filed
with the SEC on July 22, 2008, available at www.sec.gov.

    Second Quarter Financial Highlights

    
    -   Total revenue was $76.1 million.

    -   Net product sales were $50.5 million.

    -   Royalty revenue was $25.5 million.

    -   Adjusted EBITDA (earnings before interest, taxes, depreciation and
        amortization, adjusted to exclude certain non-cash and non-recurring
        items) was $5.9 million.

    -   GAAP net loss and net loss per share from continuing operations were
        $26.1 million and $0.31, respectively.

    -   Adjusted net loss from continuing operations and adjusted net loss
        per share from continuing operations (GAAP net loss as adjusted to
        exclude certain non-cash and non-recurring items) were $7.4 million
        and $0.09, respectively.

    -   As of June 30, 2008, cash and cash equivalents and long-term
        investments were $81.0 million and net debt was $494.0 million.

    Second Quarter Business Highlights

    -   Promoted Brand Strategy. Sales of our group of currently marketed
        promoted brand products continued to demonstrate higher revenue
        growth as compared to our overall product portfolio, consistent with
        the prior quarter. Revenue growth in our group of promoted brand
        products was approximately 54%, contributing to an aggregate growth
        rate of approximately 11% in total product revenue in the second
        quarter of 2008 as compared to the comparable quarter of 2007. During
        the second quarter, we launched our HemoStream(TM) chronic dialysis
        catheter in the U.S. as part of our promoted brands group, taking our
        total number of promoted brands available for sale to six, and we
        expect HemoStream to begin to contribute to sales of our
        Interventional business more significantly in the second half of 2008
        and thereafter.

    -   Base Medical Products Sales. Sales of products outside of our
        promoted brand product group also experienced growth during the
        quarter. Revenue growth in our base Surgical, Interventional and
        Specialties businesses (excluding promoted brands) was approximately
        6% in the second quarter of 2008 as compared to the second quarter of
        2007, reflecting the continued benefits of the realignment of our
        sales force completed at the end of 2007 and continued customer
        stability and growth in our Specialties business, which primarily
        sells medical devices and medical device components to other third
        party medical device makers.

    -   Quill(TM) SRS. Adoption of our Quill Self Retaining System ("SRS")
        product line continued in the second quarter, consistent with the
        trends observed in the first quarter of 2008. On June 13, 2008, we
        announced the market launch of Monoderm, a new line of our Quill SRS
        product line made from a rapidly resorbing polymer, which is intended
        primarily for superficial wound closure applications. The product is
        now available for distribution and sale in the U.S. and Europe.

    -   5-FU Central Venous Catheter. On April 17, 2008 our 5-FU-eluting
        central venous catheter (CVC) product received 510(k) marketing
        clearance from the U.S. Food and Drug Administration (FDA). We
        currently expect to commercially launch our 5-FU CVC in the U.S. in
        the second half of 2008 under the brand name MicrobX.

    -   Bio-Seal(TM) Lung Biopsy Tract System. On June 3, 2008, we announced
        the completion of our U.S. clinical trial enrolment for our novel
        Bio-Seal lung biopsy tract plug. Bio-Seal is a novel technology
        designed to reduce the incidence of post-operative pneumothorax
        (collapsed lung) in patients who undergo lung biopsy procedures. The
        primary endpoint of the Bio-Seal study is a reduction in the
        incidence of pneumothorax in patients undergoing lung biopsy
        procedures when compared with patients who do not receive the Bio-
        Seal product. The product has already received CE Mark approval and
        is available for commercial sale in Europe.

    -   Zilver(R) PTX(TM) Paclitaxel-eluting Peripheral Stent. On June 11,
        2008, our partner Cook Group Incorporated reported positive interim
        results from the registry arm of a clinical study designed to measure
        the efficacy of the Zilver PTX in treating peripheral arterial
        disease (PAD). The results were reported by trial investigators at
        the 2008 SVS Vascular Annual Meeting, and revealed clinical
        improvement, excellent durability and fracture resistance, high rates
        of event-free survival ("EFS") and freedom from target lesion
        revascularization ("TLR"). Interim data was compiled at six and 12
        months using 435 patients and 200 patients, respectively. The
        corresponding EFS rates were 94 percent and 84 percent, and freedom
        from TLR was 96 percent and 88 percent. Evaluation of stent x-rays is
        ongoing, and currently suggests stent fractures in approximately one
        percent of cases at six months and less than two percent of cases at
        12 months. In addition, the Zilver PTX stent exhibited no safety
        concerns and results were better than expected for TASC class C and D
        lesions, occlusions, in-stent restenosis and lesions greater than
        seven centimeters. Follow-up to the registry arm of the study is
        expected to continue through two years.
    

    Financial Information
    ---------------------
    This press release contains the condensed financial statements derived
from the unaudited consolidated interim financial statements for the three-
and six- month periods ended June 30, 2008, and 2007. Full unaudited
consolidated interim financial statements and Management's Discussion and
Analysis for the three- and six-month periods ended June 30, 2008, will be
filed with the relevant regulatory agencies, as well as posted on our website
at www.angiotech.com.
    Amounts, unless specified otherwise, are expressed in U.S. dollars.
Financial results are reported under GAAP unless otherwise noted. All per
share amounts are stated on a diluted basis unless otherwise noted.

    Use of Certain Non-GAAP Financial Measures
    ------------------------------------------
    Certain financial results presented in this press release include
non-GAAP measures that exclude certain items. Adjusted net loss from
continuing operations, adjusted net loss per share from continuing operations
and adjusted earnings before interest, taxes, depreciation and amortization
("Adjusted EBITDA") exclude certain non-cash and non-recurring items such as
acquisition related amortization charges, acquired in-process research and
development relating to license agreements and acquisitions, stock-based
compensation expense, foreign exchange gains or losses relating to translation
of foreign currency cash and investment balances and other non-recurring
items. Adjusted net loss from continuing operations, adjusted net loss per
share from continuing operations and Adjusted EBITDA also exclude litigation
expenses related to defending intellectual property claims. Revenue, as
adjusted, excludes non-recurring, non-operating revenue derived from license
agreements and other license revenue, net of license fees due to licensors and
excludes amounts accrued for costs incurred. Adjusted net loss from continuing
operations, adjusted net loss per share from continuing operations, revenue,
as adjusted, and Adjusted EBITDA do not have any standardized meaning
prescribed by GAAP and therefore may not be comparable to similar measures
presented by other issuers. Management uses these non-GAAP or adjusted
operating measures to establish operational goals, and believes that these
measures may assist investors in analyzing the underlying trends in our
business over time. Investors should consider these non-GAAP measures in
addition to, not as a substitute for, or as superior to, financial reporting
measures prepared in accordance with GAAP. We have provided a reconciliation
of these measures to GAAP in the attached tables.
    The financial outlook referred to above presents certain forward-looking,
non-GAAP financial information for which at this time there is no calculable
comparable GAAP measure. As a result, such non-GAAP financial information
cannot be quantitatively reconciled to comparable GAAP financial information.
Specifically, the estimates for certain operating expenses referred to above
exclude estimates of certain expenses that are inherently unpredictable or
subject to significant fluctuation for reasons unrelated to our business
performance, including stock-based compensation expenses, certain litigation
expenses and foreign exchange gains or losses.

    Conference Call Information
    ---------------------------
    A conference call to discuss these financial results will be held today,
Monday July 28, 2008 at 8:00 AM PT (11:00 AM ET).

    Dial-in information:
    North America (toll free): (800) 706-7745
    International: (617) 614-3472
    Enter passcode: 52264044

    A replay archive of the conference call will be available until August 4,
2008 by calling (888) 286-8010 (in North America) or (617) 801-6888
(International) and entering passcode 85663575.

    A live webcast will be available to all interested parties through the 
Investors section of Angiotech's website: www.angiotech.com


    
                       ANGIOTECH PHARMACEUTICALS, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                 (Unaudited)

    (in thousands
     of U.S.$, except
     share and per     Three months ended            Three months ended
     share data)           30-Jun-08                     30-Jun-07
    -------------------------------------------------------------------------
                             Adjust-                       Adjust-
                  Reported     ment   Adjusted  Reported     ment   Adjusted

    REVENUE
    Royalty
     revenue      $ 25,536  $     -   $ 25,536  $ 29,878  $     -   $ 29,878
    Product
     sales, net     50,533        -     50,533    42,421    2,980 a   45,401
    License fees        53      (53)b        -        53      (53)b        -
    -------------------------------------------------------------------------
                    76,122      (53)    76,069    72,352    2,927     75,279
    -------------------------------------------------------------------------
    EXPENSES
    License and
     royalty fees    3,661        -      3,661     4,268        -      4,268
    Cost of
     products sold  26,809      (28)d   26,781    25,085     (927)c   24,158
    Research and
     development    18,584   (1,366)e   17,218    13,458     (781)e   12,677
    Selling,
     general and
     administra-
     tive           25,813   (2,167)f   23,646    24,363   (4,774)f   19,589
    Depreciation
     and amort-
     ization         8,539   (7,593)g      946     8,328   (7,459)g      869
    In-process
     research and
     development         -        -          -     8,000   (8,000)h        -
    -------------------------------------------------------------------------
                    83,406  (11,154)    72,252    83,502  (21,941)    61,561
    -------------------------------------------------------------------------
    Operating
     (loss)
     income       $ (7,284) $11,101  $   3,817  $(11,150) $24,868   $ 13,718
    -------------------------------------------------------------------------
    Other income
     (expenses):
    Foreign
     exchange
     gain (loss)       140     (140)i        -      (505)     505 i        -
    Investment and
     other income      686       12 j      698      (994)   1,933 j      939
    Loss on sale/
     write-down of
     investments   (10,660)  10,660 k        -         -        -          -
    Interest
     expense on
     long-term
     debt          (10,941)     559 l  (10,382)  (12,896)     568 l  (12,328)
    -------------------------------------------------------------------------
                   (20,775)   11,09 1   (9,684)  (14,395)   3,006    (11,389)
    -------------------------------------------------------------------------
    (Loss) income
     from
     continuing
     operations
     before
     income
     taxes        $(28,059) $22,192   $ (5,867) $(25,545) $ 27,874  $  2,329
    Income tax
     (recovery)
     expense        (1,988)   3,563 m    1,575   (10,500)    7,857 m  (2,643)
    -------------------------------------------------------------------------
    (Loss) income
     from
     continuing
     operations    (26,071)  18,629     (7,442)  (15,045)   20,017     4,972
    Net loss from
     discontinued
     operations,
     net of income
     taxes               -        -          -      (170)      170         -
    -------------------------------------------------------------------------
    Net (loss)
     income
     for the
     period       $(26,071) $18,629   $ (7,442) $(15,215) $ 20,187  $  4,972
    -------------------------------------------------------------------------
    Basic and
     diluted net
     loss per
     common share
     from
     continuing
     operations   $  (0.31)           $  (0.09)  $ (0.18)           $   0.06
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted
     average
     shares
     outstanding
     (000's) -
     basic and
     diluted        85,122              85,122    85,014              85,014
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    a.  Amounts incurred for costs incurred, and potential future costs,
        related to our discontinuation of the Contour Threads brand product.
    b.  Non-recurring, non-operating license revenue, net of license fees due
        to licensors.
    c.  Change in estimate of accounting for excess and obsolete inventory
        resulting from the alignment during the second quarter of 2007 of
        inventory policies across our various manufacturing operations.
    d.  Non-recurring supply/distribution agreement termination costs.
    e.  Research and development adjustments:
        ---------------------------------------------------------------------
                                            Three months        Three months
                                                ended              ended
                                            Jun 30, 2008       Jun 30, 2007
                                          -----------------------------------
        Stock-based compensation                $   (189)           $   (531)
        Termination and reorganization costs        (677)               (250)
        Non-recurring supply/distribution
         agreement termination costs                (500)                  -
        ---------------------------------------------------------------------
                                                $ (1,366)           $   (781)
                                          -----------------------------------

    f.  Selling, general and administrative adjustments:
        ---------------------------------------------------------------------
                                            Three months        Three months
                                                ended              ended
                                            Jun 30, 2008        Jun 30, 2007
                                          -----------------------------------
        Stock-based compensation                $   (418)           $   (774)
        Termination and reorganization costs      (1,026)             (1,846)
        Litigation expenses relating to
         defending intellectual property
         claims                                     (691)             (2,154)
        Non-recurring supply/distribution
         agreement termination costs                 (32)                  -
        ---------------------------------------------------------------------
                                                $ (2,167)           $ (4,774)
                                          -----------------------------------

    g.  Amortization of acquisition related intangible assets and medical
        technologies.
    h.  Non-recurring in-process research and development expense relating to
        payments made to licensors and collaborators.
    i.  Foreign exchange fluctuations on foreign currency net monetary
        assets.
    j.  Write off of uncollectible tax receivable and write off of certain
        capitalized costs.
    k.  Loss on write down of investments.
    l.  Amortization of deferred financing costs.
    m.  Tax effects of adjustments a. through l. for the period, including
        the reversal of tax reserves previously booked.



                       ANGIOTECH PHARMACEUTICALS, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                 (Unaudited)

    (in thousands
     of U.S.$, except
     share and per      Six months ended              Six months ended
     share data)           30-Jun-08                     30-Jun-07
    -------------------------------------------------------------------------
                             Adjust-                       Adjust-
                  Reported     ment   Adjusted  Reported     ment   Adjusted

    REVENUE
    Royalty
     revenue      $ 54,465  $     -   $ 54,465  $ 62,878  $     -   $ 62,878
    Product
     sales, net     98,259        -     98,259    84,907    2,980 a   87,887
    License fees       106     (106)b        -       525     (525)b        -
    -------------------------------------------------------------------------
                   152,830     (106)   152,724   148,310    2,455    150,765
    -------------------------------------------------------------------------
    EXPENSES
    License and
     royalty fees    8,032        -      8,032     9,709        -      9,709
    Cost of
     products sold  52,658      (28)c   52,630    47,877   (1,727)c   46,150
    Research and
     development    34,889   (2,932)d   31,957    27,221   (3,890)d   23,331
    Selling,
     general and
     administra-
     tive           53,654   (6,718)e   46,936    47,818  (10,021)e   37,797
    Depreciation
     and
     amortization   17,017  (15,178)f    1,839    16,483  (14,734)f    1,749
    In-process
     research and
     development     2,500   (2,500)g        -     8,000   (8,000)g        -
    -------------------------------------------------------------------------
                   168,750  (27,356)   141,394   157,108  (38,372)   118,736
    -------------------------------------------------------------------------
    Operating
     (loss)
     income       $(15,920) $27,250   $ 11,330  $ (8,798) $40,827   $ 32,029
    -------------------------------------------------------------------------
    Other income
     (expenses):
    Foreign
     exchange
     gain (loss)       563     (563)h        -      (403)     403 h        -
    Investment
     and other
     income          1,442       12 i    1,454     7,808   (5,577)i    2,231
    Loss on sale/
     write-down of
     investments   (10,660)  10,660 k        -    (8,157)   8,157 j        -
    Interest
     expense on
     long-term
     debt          (23,061)   1,118 l  (21,943)  (25,695)   1,126 l  (24,569)
    -------------------------------------------------------------------------
                   (31,716)  11,227    (20,489)  (26,447)   4,109    (22,338)
    -------------------------------------------------------------------------
    (Loss) income
     from
     continuing
     operations
     before
     income
     taxes        $(47,636) $38,477   $ (9,159) $(35,245) $44,936   $  9,691
    Income tax
     (recovery)
     expense        (5,802)   7,961 m    2,159   (13,529)  10,301 m   (3,228)
    -------------------------------------------------------------------------
    (Loss) income
     from
     continuing
     operations    (41,834)  30,516    (11,318)  (21,716)  34,635     12,919
    Net loss from
     discontinued
     operations,
     net of income
     taxes               -        -          -    (5,791)   5,791          -
    -------------------------------------------------------------------------
    Net (loss)
     income for
     the period   $(41,834) $30,516   $(11,318) $(27,507) $40,426   $ 12,919
    -------------------------------------------------------------------------
    Basic and
     diluted net
     (loss) income
     per common
     share from
     continuing
     operations   $  (0.49)           $  (0.13) $  (0.25)           $   0.15
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted
     average
     shares
     outstanding
     (000's) -
     basic and
     diluted        85,114              85,114    85,008              85,008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    a.  Amounts incurred for costs incurred, and potential future costs,
        related to our discontinuation of the Contour Threads brand product.
    b.  Non-recurring, non-operating license revenue, net of license fees due
        to licensors.
    c.  Change in estimate of accounting for excess and obsolete inventory
        resulting from the alignment during the second quarter of 2007 of
        inventory policies across our various manufacturing operations, and
        non-recurring supply/distribution agreement termination costs.
    d.  Research and development adjustments:

        ---------------------------------------------------------------------
                                             Six months          Six months
                                                ended              ended
                                            Jun 30, 2008       Jun 30, 2007
                                          -----------------------------------
        Stock-based compensation                $   (500)               (973)
        License fees due to licensors
         related to non-recurring license
         revenue                                       -                (419)
        Termination and reorganization costs      (1,307)               (849)
        Non-recurring supply/distribution
         agreement termination costs                (500)               (899)
        Non-recurring in-process research
         and development expenses and
         intellectual property license
         agreement.                                 (625)               (750)
        ---------------------------------------------------------------------
                                                $ (2,932)           $ (3,890)
                                          -----------------------------------


    e.  Selling, general and administrative adjustments:
        ---------------------------------------------------------------------
                                             Six months          Six months
                                                ended              ended
                                            Jun 30, 2008        Jun 30, 2007
                                          -----------------------------------
        Stock-based compensation                $   (924)           $ (1,392)
        Termination and reorganization costs      (2,755)             (3,385)
        Litigation expenses relating to
         defending intellectual property
         claims                                   (2,289)             (4,994)
        Non-recurring supply/distribution
         agreement termination costs                (751)               (250)
        ---------------------------------------------------------------------
                                                $ (6,718)           $(10,021)
                                          -----------------------------------

    f.  Amortization of acquisition related intangible assets and medical
        technologies.
    g.  Non-recurring in-process research and development expense.
    h.  Foreign exchange fluctuations on foreign currency net monetary
        assets.
    i.  Write off of uncollectible tax receivable and write off of certain
        capitalized costs.
    j.  Net impact of loss and gain on redemption of investments of common
        share holdings in Orthovita Inc. and NuVasive Inc. respectively.
    k.  Loss on write down of investments.
    l.  Amortization of deferred financing costs.
    m.  Tax effects of adjustments a. through l. for the period, including
        the reversal of tax reserves previously booked.



                       ANGIOTECH PHARMACEUTICALS, INC.
                       CALCULATION OF ADJUSTED EBITDA
                                 (Unaudited)

                                      Three months           Six months
                                      ended June 30         ended June 30
    (in thousands of U.S.$)          2008       2007       2008       2007
    -------------------------------------------------------------------------

    Net (loss) income
     on a GAAP basis              $ (26,071) $ (15,215) $ (41,834) $ (26,096)
    Interest expense on
     long-term debt                  10,941     12,896     23,061     25,695
    Income tax expense (recovery)    (1,988)   (10,649)    (5,802)   (17,420)
    Depreciation and amortization     9,723      9,524     19,172     18,775
    -------------------------------------------------------------------------
    EBITDA                        $  (7,395) $  (3,444) $  (5,403) $     954
    -------------------------------------------------------------------------
    Adjustments:
    Net loss from discontinued
     operations, excluding
     depreciation, amortization
     and income tax expense
     included above               $       -  $     159  $       -  $   9,379
    In-process research and
     development                          -      8,000      2,500      8,000
    Non-recurring research
     and development                      -          -        625        750
    Non-recurring revenue, net
     of license fees                    (53)       (53)      (106)      (106)
    Stock-based compensation            607      1,305      1,425      2,364
    Litigation expenses                 691      2,154      2,289      4,994
    Foreign exchange gain              (140)       505       (563)       403
    Investment and other income        (686)      (939)    (1,442)    (2,231)
    Severance                         1,762      1,846      4,840      3,984
    Supply/distribution agreement
     termination costs                    -        250          -      2,199
    E&O inventory adjustment              -        927          -        927
    Contour Threads return
     costs accrual                        -      2,980          -      2,980
    Write off of capitalized costs      500        280        500        280
    Write off uncollectible
     tax receivable                       -      2,250          -      2,250
    Accrued interest income               -       (597)         -       (597)
    Writedown/loss on redemption
     of investments                  10,660          -     10,660        647
    -------------------------------------------------------------------------
    Adjusted EBITDA               $   5,946  $  15,623  $  15,325  $  37,177
    -------------------------------------------------------------------------



                       ANGIOTECH PHARMACEUTICALS, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (Unaudited)

    As at                                            June 30,    December 31,
    (in thousands of U.S.$)                            2008          2007
    -------------------------------------------------------------------------
    ASSETS
    Cash and cash equivalents                       $   62,915    $   91,326
    Accounts receivable                                 28,681        22,678
    Inventories                                         36,240        33,647
    Deferred income taxes                                4,843         5,964
    Other current assets                                 4,964         7,070
    -------------------------------------------------------------------------
    Total current assets                            $  137,643    $  160,685
    -------------------------------------------------------------------------
    Long-term investments                           $   18,092    $   24,456
    Property and equipment, net                         61,279        59,187
    Intangible assets, net                             213,158       225,889
    Goodwill                                           667,624       659,511
    Deferred income taxes                                2,988             -
    Deferred financing costs                            12,481        13,600
    Other assets                                         8,921         6,780
    -------------------------------------------------------------------------
    Total assets                                    $1,122,186    $1,150,108
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities                             $   63,630    $   62,940
    Long-term debt                                     575,000       575,000
    Deferred income taxes                               55,657        59,368
    Other tax liabilities                                5,534         4,693
    Other long-term liabilities                          5,701         6,035
    Stockholders' equity                               416,664       442,072
    -------------------------------------------------------------------------
    Total liabilities and stockholders' equity      $1,122,186    $1,150,108
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Forward-Looking Statements
    --------------------------
    Statements contained in this press release that are not based on
historical fact, including without limitation statements containing the words
"believes," "may," "plans," "will," "estimate," "continue," "anticipates,"
"intends," "expects" and similar expressions, constitute "forward-looking
statements" within the meaning of the U.S. Private Securities Litigation
Reform Act of 1995 and constitute "forward-looking information" within the
meaning of applicable Canadian securities laws. All such statements are made
pursuant to the "safe harbor" provisions of applicable securities legislation.
Forward-looking statements may involve, but are not limited to, comments with
respect to our objectives and priorities for the second half of 2008 and
beyond, and our strategies or future actions, our targets, expectations for
our financial condition and the results of, or outlook for, our operations,
research development and product and drug development. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results, events or developments to be materially
different from any future results, events or developments expressed or implied
by such forward-looking statements. Many such risks, uncertainties and other
factors are taken into account as part of our assumptions underlying these
forward-looking statements and include, among others, the following: general
economic and business conditions, both nationally and in the regions in which
we operate; market demand; technological changes that could impact our
existing products or our ability to develop and commercialize future products;
competition; existing governmental regulations and changes in, or the failure
to comply with, governmental regulations; adverse results or unexpected delays
in pre-clinical and clinical product development processes; adverse findings
related to the safety and/or efficacy of our products or products sold by our
partners; decisions, and the timing of decisions, made by health regulatory
agencies regarding approval of our technology and products; the requirement
for substantial funding to conduct research and development, to expand
manufacturing and commercialization activities or consummate acquisitions; and
any other factors that may affect performance. In addition, our business is
subject to certain operating risks that may cause the actual results expressed
or implied by the forward-looking statements in this press release to differ
materially from our actual results. These operating risks include: our ability
to attract and retain qualified personnel; our ability to successfully
complete preclinical and clinical development of our products; changes in
business strategy or development plans; our failure to obtain patent
protection for discoveries; loss of patent protection resulting from third
party challenges to our patents; commercialization limitations imposed by
patents owned or controlled by third parties; our ability to obtain rights to
technology from licensors; liability for patent claims and other claims
asserted against us; our ability to obtain and enforce timely patent and other
intellectual property protection for our technology and products; the ability
to enter into, and to maintain, corporate alliances relating to the
development and commercialization of our technology and products; market
acceptance of our technology and products; our ability to successfully
manufacture, market and sell our products; the continued availability of
capital to finance our activities; our ability to continue to service our debt
obligations; and any other factors referenced in our annual information form
and other filings with the applicable Canadian securities regulatory
authorities or the Securities and Exchange Commission. Given these
uncertainties, assumptions and risk factors, readers are cautioned not to
place undue reliance on such forward-looking statements. Except as required by
law, we disclaim any obligation to update any such factors or to publicly
announce the result of any revisions to any of the forward-looking statements
contained in this press release to reflect future results, events or
developments.

    Additional Information and Where to Find It
    -------------------------------------------
    In connection with the proposed establishment of separate royalty and
operating businesses, Angiotech filed a preliminary proxy statement with the
SEC. The preliminary proxy statement is not yet final and will be amended.
Shareholders are urged to read the final proxy statement (and all amendments
and supplements to it) and other materials that Angiotech may file with the
SEC when they become available in their entirety, because they contain
important information about the proposed transaction. The final proxy
statement will be mailed to Angiotech's shareholders. Shareholders will be
able to obtain free copies of the final proxy statement, as well as
Angiotech's other filings, without charge, at the SEC's Web site (www.sec.gov)
when they become available. Copies of the filings may also be obtained without
charge from Angiotech by directing a request to: Angiotech Pharmaceuticals,
Inc., 1618 Station Street, Vancouver, British Columbia, Canada V6A 1B6,
Attention: Investor Relations (Tel: (604) 221-7676).

    Participants in the Solicitation
    --------------------------------
    Angiotech and its directors, executive officers and other members of
management and employees may be deemed to be participants in the solicitation
of proxies from the holders of Angiotech common shares in respect of the
proposed transaction. Information about the directors and executive officers
is set forth in Angiotech's Annual Report on Form 40-F for the most recently
ended fiscal year, which was filed with the SEC on March 31, 2008, and
Angiotech's proxy statement for its 2008 annual and special general meeting of
shareholders, filed with the SEC on July 22, 2008. Additional information
regarding the interests of such potential participants will be included in the
final proxy statement and the other relevant documents filed with the SEC when
they become available.

    Quill(TM) is a trademark of Quill Medical, Inc., a wholly-owned
    subsidiary of Angiotech Pharmaceuticals, Inc.
    BioSeal(TM) is a trademark of Medical Device Technologies, Inc., a
    wholly-owned subsidiary of Angiotech Pharmaceuticals, Inc.

    Zilver(R) PTX(TM) is a trademark of Cook Group Incorporated.
    HemoStream(TM) is a trademark of Rex Medical, LP, used under license by
    Angiotech Pharmaceuticals, Inc.
    (C) 2008 Angiotech Pharmaceuticals, Inc. All Rights Reserved.


    About Angiotech Pharmaceuticals
    -------------------------------
    Angiotech Pharmaceuticals, Inc. is a global specialty pharmaceutical and
medical device company with over 1,500 dedicated employees. Angiotech
discovers, develops and markets innovative treatment solutions for diseases or
complications associated with medical device implants, surgical interventions
and acute injury. To find out more about Angiotech (NASDAQ:   ANPI, TSX: ANP)
please visit our website at www.angiotech.com.





For further information:

For further information: Sage Baker, Investor Relations and Corporate
Communications, Angiotech Pharmaceuticals, Inc., (604) 221-6933,
sbaker@angio.com

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Angiotech Pharmaceuticals, Inc.

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