Angiotech Pharmaceuticals, Inc. announces financial results for the first quarter ended March 31, 2009



    VANCOUVER, April 30 /CNW/ - Angiotech Pharmaceuticals, Inc. (NASDAQ:  
ANPI, TSX: ANP) today announced its financial results for the first quarter
ended March 31, 2009.
    "We were pleased to post solid results for our first quarter in what has
been a difficult business environment for many companies," said Dr. William
Hunter, President and CEO of Angiotech. "Sales in our proprietary Surgical and
Interventional business areas continued to show very promising growth, with
Quill SRS in particular garnering greater acceptance in new hospitals and
surgical disciplines, and we continued to realize expense reductions as
compared to the prior quarter. Additionally, our royalty revenue increased as
compared to the fourth quarter of last year, indicating an improved market
position for our partner Boston Scientific and higher sales of
paclitaxel-eluting stents."

    
    First Quarter Financial Highlights

    -  Total revenue was $88.3 million. Total revenue was $63.2 million on
       an adjusted basis, excluding one-time license revenue of $25 million
       received from our partner Baxter International Inc. ("Baxter")
       relating to our amended and restated Distribution and License
       Agreement, as announced on March 31, 2009.

    -  Net product sales were $46.1 million.

    -  Royalty revenue was $17.1 million.

    -  Adjusted EBITDA (earnings before interest, taxes, depreciation and
       amortization, adjusted to exclude certain non-cash and non-recurring
       items) was $14.6 million.

    -  Research and development expenses were $6.1 million, and as adjusted
       to exclude non-cash stock-based compensation expenses and
       non-recurring termination related costs were $5.7 million. These
       results compare to $7.7 million and $6.9 million, respectively, in
       the fourth quarter of 2008 and to $16.3 million and $14.7 million,
       respectively, in the first quarter of 2008, reflecting a reduction in
       expenses of 17.4% in a single quarter and 61.2% as compared to the
       first quarter in 2008, both on an adjusted basis.

    -  Selling, general and administrative expenses were $19.6 million, and
       as adjusted to exclude non-cash stock-based compensation expenses,
       non-recurring termination related costs, certain litigation costs and
       non-recurring financing fees were $17.0 million. These results compare
       to $21.4 million and $19.0 million, respectively, in the fourth
       quarter of 2008 and to $27.8 million and $23.3 million, respectively,
       in the first quarter of 2008.

    -  GAAP net income and net income per share from continuing operations
       for the quarter were $12.4 million and $0.14, respectively, compared
       to a net loss of ($15.7) million and ($0.19) for the first quarter of
       2008. The increase in net income of $28.1 million is due primarily to
       an increase in license revenue as a result of the one-time payment of
       $25.0 million received relating to our amended and restated
       Distribution and License Agreement with Baxter as announced on
       March 31, 2009, a $10.5 million decrease in research and development
       costs deriving primarily from the completion or termination of various
       of our human clinical trial activities and from certain cost reduction
       initiatives that were implemented during 2008, a decrease in general
       and administrative costs deriving primarily from certain cost
       reduction initiatives that were implemented during 2008, and a lower
       interest rate incurred on our senior floating rate notes. These
       factors were partially offset by a reduction of $12.3 million in
       royalty revenue derived from Boston Scientific Corporation's ("BSC")
       sales of paclitaxel-eluting coronary stent systems as compared to the
       first quarter of 2008.

    -  As of March 31, 2009, cash and short-term investments were
       $66.2 million and net debt was $508.8 million.
    

    First Quarter Highlights

    New Senior Secured Term Loan and Credit Facilities. In March 2009 we
announced that we had obtained a new senior secured term loan and revolving
credit facility. Wells Fargo Foothill, LLC is the sole arranger,
administrative agent and lender for both the term loan and revolving credit
facility. This financing includes a delayed draw secured term loan facility of
up to $10 million, and a secured revolving credit facility with a borrowing
base derived from the value of certain of our finished goods inventory and
accounts receivable, providing up to an additional $22.5 million in available
credit, subject to certain terms and conditions. Any borrowings outstanding
under the term loan and revolving credit facility bear interest ranging from
LIBOR + 3.25% to LIBOR +3.75%, with a minimum base LIBOR rate of 2.25%. The
purpose of this financing is to provide additional liquidity and capital
resources for working capital and general corporate purposes. As of March 31,
2009, we have not drawn on any portion of the term loan facility or the
revolving credit facility.

    Distribution and License Agreement with Baxter. In March 2009 we
announced that we had entered into an Amended and Restated Distribution and
License Agreement with our partner Baxter. As consideration for the Amended
and Restated Distribution and License Agreement, we received an up-front
payment of $25.0 million. We initially entered into a Distribution and License
Agreement with Baxter in 2003 relating to certain intellectual property for
our COSEAL(R) surgical sealant. The Distribution and License Agreement
entitled Baxter to market and sell COSEAL worldwide (excluding Japan), from
which we have derived royalty revenue from Baxter. The Distribution and
License Agreement also gave Baxter an option for distribution rights in Japan.
As a result of amendment, Baxter will obtain worldwide rights to COSEAL and
certain additional fields of use for COSEAL, and expanded worldwide rights to
COSEAL derivatives. Baxter will owe us no further royalty or milestone
obligations to us relating to the existing formulation of COSEAL or any future
products under the terms of the Amended and Restated Distribution and License
Agreement.

    Proprietary Medical Products. Certain of our product lines, which
constitute our Proprietary Medical Products, are marketed and sold by our two
direct sales groups. We believe these product lines contain technology
advantages that may provide for more substantial revenue growth potential as
compared to our overall product portfolio. Our significant currently marketed
Proprietary Medical Products include (i) our Quill(TM) SRS wound closure
product line, which is marketed and sold by our Surgical Products Sales Group,
and (ii) our HemoStream(TM) dialysis catheter, our Skater line of drainage
catheters, our BioPince(TM) full core biopsy device, and our V+Pad(TM)
hemostatic pad which are marketed and sold by our Interventional Products
Sales Group. Our Proprietary Medical Products continued to demonstrate higher
revenue growth as compared to our overall product portfolio, consistent with
recent prior quarters. Revenue growth for these products in the first quarter
of 2009 was approximately 28% as compared to the first quarter of 2008 and 10%
as compared to the fourth quarter of 2008. Excluding the impact of foreign
currency changes between the respective periods, the revenue growth figures
indicated above would have been 35% and 10% respectively.

    Base Medical Products. Certain of our product lines, which constitute our
Base Medical Products, represent more mature finished goods product lines in
the general surgery and ophthalmology areas or medical device components
manufactured by us and sold to other third party medical device manufacturers
who assemble those components into finished medical devices. Sales of our Base
Medical Products are supported by a small group of direct sales personnel, as
well as a network of independent sales representatives and medical product
distributors. Sales of our Base Medical Products tend to exhibit greater
volatility or slower relative growth, particularly our sales of components to
third party medical device manufacturers, which may be impacted by customer
concentration and the business issues that certain of our large customers may
face, as well as to a more limited extent by economic and credit market
conditions. Sales of our Base Medical Products declined by approximately 12%
in the first quarter of 2009 as compared to the first quarter of 2008, and
declined by approximately 3% as compared to the fourth quarter of 2008.
Excluding the impact of foreign currency changes between the respective
periods, revenue would have declined by 7% and 3% as compared to the first
quarter of 2008 and the fourth quarter of 2008, respectively.
    The decline in our Base Medical Products sales as compared to the first
quarter of 2008 is due primarily to lower sales of medical device components
to other third party medical device manufacturers, particularly sales of
surgical needles to one of our largest customers, and to a more limited extent
due to negative currency impact relating to sales of certain of our Base
Medical Product lines outside of the United States. Manufacturing of surgical
needles, as of November 2008, was fully transferred to our facility in
Aguadilla, Puerto Rico from our facility in Syracuse, New York. We believe
that the closure of our Syracuse production facility in November and the
finalization of our move of surgical needle production to Aguadilla, combined
with the difficult economic and credit market environment, may have impacted
our level of Base Medical Product sales during the first quarter of 2009 as
compared to the first quarter of 2008. We currently expect that certain of our
customers may increase their order levels later in 2009; however, there can be
no assurance that we will record sales of surgical needles to these customers
at levels observed in prior periods.

    New TAXUS Regulatory Submissions, Clinical Data. In February 2009 we
announced that our BSC had submitted the final modules for pre-market approval
("PMA") for both its TAXUS Liberté(R) Atom(TM) Paclitaxel-Eluting Coronary
Stent System and its TAXUS Liberté Long(TM) Paclitaxel-Eluting Coronary Stent
System to the U.S. Food and Drug Administration ("the FDA"). If approved, the
TAXUS Liberté Atom Stent will become BSC's second 2.25 millimeter diameter
drug-eluting stent ("DES") available in the United States. It will then likely
succeed the TAXUS Express(TM) Atom Stent, which is BSC's first approved small
stent and the only DES currently approved by the FDA to treat small blood
vessels. The TAXUS Liberté Long Stent is designed to be the first 38
millimeter drug-eluting stent available in the United States and will further
expand this leading DES portfolio. These PMA submissions include clinical data
from the global, multi-center TAXUS ATLAS Small Vessel ("SV") and Long Lesion
("LL") studies, designed to compare the performance of the TAXUS Liberté Atom
and TAXUS Liberté Long Stents with BSC's first-generation TAXUS Express Stent.
While the second-generation TAXUS Liberté Stent uses identical drug dose,
polymer and release kinetics as the TAXUS Express Stent, it features thinner
struts and a uniform architecture specifically designed for drug delivery.
One-year results from the TAXUS ATLAS SV and LL studies were published in the
December 2008 issue of the Journal of American College of Cardiology. The
studies both met their primary endpoint of noninferior, nine-month, in-segment
diameter stenosis (narrowing of a blood vessel) versus the TAXUS Express Stent
control group. They reported a significant reduction in small vessel in-stent
restenosis (re-narrowing of a blood vessel) and major adverse coronary events
in patients treated with the TAXUS Liberté Atom Stent, and a significantly
reduced rate of myocardial infarction (heart attack) in patients with long
lesions treated with the TAXUS Liberté Long Stent.

    TAXUS Liberté Approval in Japan. In January 2009 we announced that BSC
had received approval from the Japanese Ministry of Health, Labor and Welfare
to market the TAXUS Liberté in Japan. BSC plans to launch the product in Japan
once reimbursement approval is granted. TAXUS Liberté is the only
second-generation drug-eluting stent approved for use in Japan. The TAXUS
Liberté stent will replace the TAXUS Express2 stent, marketed in Japan since
May 2007.

    Financial and Strategic Alternatives Process. Over the last two years,
revenue in our Pharmaceutical Technologies segment has declined significantly,
primarily due to lower royalties derived from sales by BSC of TAXUS coronary
stent systems. This decline in royalty revenue has negatively and materially
impacted our liquidity and results of operations. During 2008, our management
and Board of Directors decided to explore and pursue various restructuring and
cost reduction actions as well as various financial and strategic transactions
that could potentially reduce or eliminate our existing debt obligations and
improve our working capital position. On November 21, 2008, we announced that
we had engaged The Blackstone Group to assist us in evaluating various
alternatives for our business and capital structure, including, but not
limited to, securing interim senior secured financing for working capital and
liquidity purposes evaluating various restructuring alternatives to pursue
with the holders of our Senior Floating Rate Notes due 2013 and our 7.75%
Senior Subordinated Notes due 2014, and assisting us in evaluating proposals
or potential proposals from selected parties regarding various financial or
strategic alternatives. Our management and Board of Directors continue to
believe a transaction of significant size and scope may be necessary to
meaningfully address liquidity concerns and the working capital needs of our
business. There can be no assurance that we will be able to complete any
transaction, or that any transaction could be pursued or would be able to be
completed on favorable terms.
    Our cash inflows and the amounts of expenditures that will be necessary
to execute our business plan are subject to numerous uncertainties, including
but not limited to: changes in drug-eluting coronary stent markets, including
the impact of new competitive entrants into such markets, and the sales
achieved in such markets by our partner BSC, the amount, timing and success of
product sales and marketing initiatives and new product launches, the timing
and success of our research, product development and clinical trial
activities, the timing of completing certain operational initiatives, our
ability to effect reductions in certain aspects of our budgets in an efficient
and timely manner, and changes in interest rates. These and other
uncertainties may adversely affect our liquidity and capital resources to a
significant extent and may force us to further reduce our expenditures on
research and development or on our various new product and sales and marketing
initiatives in order for us to continue to service our debt obligations. Such
further reductions in our budgeted expenditures may have an adverse effect on
our new product development and sales growth initiatives and reduce our
ability to achieve the revenue growth targets, product launch or new product
development timelines in our current operating plan. There can also be no
assurance that such reductions in expenditures will be adequate to provide
enough cash flow to continue to service our current level of debt obligations.
    In particular, should our royalties received from BSC or our product
sales decline significantly in future periods, our liquidity may be adversely
affected, and we may be forced to explore alternative funding sources through
debt, equity or other public or private securities offerings, or to pursue
certain reorganization, restructuring or other strategic alternatives. There
can be no assurance that if we pursue such financing activities that
alternative sources of funding would be available to us on attractive terms,
if at all. In addition, we may not be able to complete any restructuring,
reorganization or strategic activities on terms that would be favorable for us
or our shareholders. Capital markets conditions have deteriorated
significantly during 2008 and 2009, including a significant and material
decline in the level of corporate lending activity, combined with a
significant increase in the cost of any such lending. Current market
conditions may have a material impact on our ability to secure any alternative
source of funding, our ability to secure interim financing or to complete any
of the activities as described on favorable terms, if at all.

    
    Financial Information
    ---------------------
    

    This press release contains the condensed financial statements derived
from the unaudited interim consolidated financial statements for the quarter
ended March 31, 2009. Full unaudited interim consolidated financial statements
and Management's Discussion and Analysis for the quarter ended March 31, 2009
will be filed on Form 10-Q on or before May 15, 2009.
    Amounts, unless specified otherwise, are expressed in U.S. dollars.
Financial results are reported under U.S. 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 income (loss) from
continuing operations, adjusted net income (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, goodwill and financing charges, write downs, 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
denominated items and other non-recurring items. Adjusted net income (loss)
from continuing operations, adjusted net income (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 income (loss) from continuing
operations, adjusted net income (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 evaluating the results of the business and
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.

    
    Conference Call Information
    ---------------------------

    A conference call to discuss these financial results will be held today,
Thursday April 30, 2009 at 8:00 AM PT (11:00 AM ET).

    Dial-in information:
    North America (toll-free): (800) 901-5247
    International: (617) 786-4501
    Enter Passcode: 72734002

    An archived replay of the call will be available until May 7, 2009.
    North America (toll-free): (888) 286-8010
    International: (617) 801-6888
    Enter Passcode: 95526962

    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                Three months ended
     share and per share data)                      March 31, 2009
    -------------------------------------------------------------------------
                                         Reported     Adjustment    Adjusted

    REVENUE
    Royalty revenue                     $  17,111    $      -      $  17,111
    Product sales, net                     46,136           -         46,136
    License fees                           25,053     (25,053) a           -
    ----------------------------------- -------------------------------------
                                           88,300     (25,053)        63,247
    ----------------------------------- -------------------------------------

    EXPENSES
    License and royalty fees                2,905           -          2,905
    Cost of products sold                  23,966           -         23,966
    Research and development                6,097        (414) b       5,683
    Selling, general and administrative    19,572      (2,583) c      16,989
    Depreciation and amortization           8,265      (7,381) d         884
    In-process research and development         -           -              -
    ----------------------------------- -------------------------------------
                                           60,805     (10,378)        50,427
    ----------------------------------- -------------------------------------
    Operating income (loss)                27,495     (14,675)        12,820
    ----------------------------------- -------------------------------------
    Other income (expenses):
    Foreign exchange gain                     732        (732) f           -
    Investment and other income               (15)         40  g          25
    Interest expense on long-term debt    (10,044)        618  h      (9,426)
    ----------------------------------- -------------------------------------
    ----------------------------------- -------------------------------------
                                           (9,327)        (74)        (9,401)
    ----------------------------------- -------------------------------------
    ----------------------------------- -------------------------------------

    Income (loss) before income taxes      18,168     (14,749)         3,419
    Income tax expense (recovery)           5,724      (3,194) i       2,530
    ----------------------------------- -------------------------------------
    ----------------------------------- -------------------------------------
    Net income (loss) for the period       12,444     (11,555)           889
    ----------------------------------- -------------------------------------

    Basic net income (loss) per
     common share                       $    0.15                  $    0.01
    Diluted net income (loss) per
     common share                       $    0.14                  $    0.01
    ----------------------------------- -------------------------------------
    ----------------------------------- -------------------------------------
    Weighted average shares
     outstanding (000's) - basic           85,121                     85,121
    Weighted average shares
     outstanding (000's) - diluted         87,414                     87,414
    ----------------------------------- -------------------------------------
    ----------------------------------- -------------------------------------


    (in thousands of U.S.$, except                Three months ended
     share and per share data)                      March 31, 2008
    -------------------------------------------------------------------------
                                         Reported     Adjustment    Adjusted

    REVENUE
    Royalty revenue                     $  28,929    $      -      $  28,929
    Product sales, net                     47,727           -         47,727
    License fees                               53         (53) a           -
    ----------------------------------- -------------------------------------
                                           76,709         (53)        76,656
    ----------------------------------- -------------------------------------

    EXPENSES
    License and royalty fees                4,371           -          4,371
    Cost of products sold                  25,849           -         25,849
    Research and development               16,305      (1,566) b      14,739
    Selling, general and administrative    27,843      (4,552) c      23,291
    Depreciation and amortization           8,477      (7,585) d         892
    In-process research and development     2,500      (2,500) e           -
    ----------------------------------- -------------------------------------
                                           85,345     (16,203)        69,142
    ----------------------------------- -------------------------------------
    Operating income (loss)                (8,636)     16,150          7,514
    ----------------------------------- -------------------------------------
    Other income (expenses):
    Foreign exchange gain                     423        (423) f           -
    Investment and other income               756                        756
    Interest expense on long-term debt    (12,120)        559  h     (11,561)
    ----------------------------------- -------------------------------------
    ----------------------------------- -------------------------------------
                                          (10,941)        136        (10,805)
    ----------------------------------- -------------------------------------
    ----------------------------------- -------------------------------------

    Income (loss) before income taxes     (19,577)     16,286         (3,291)
    Income tax expense (recovery)          (3,814)      4,397  i         583
    ----------------------------------- -------------------------------------
    ----------------------------------- -------------------------------------
    Net income (loss) for the period      (15,763)     11,889         (3,874)
    ----------------------------------- -------------------------------------

    Basic net income (loss) per
     common share                       $   (0.19)                 $   (0.05)
    Diluted net income (loss) per
     common share                       $   (0.19)                 $   (0.05)
    ----------------------------------- -------------------------------------
    ----------------------------------- -------------------------------------
    Weighted average shares
     outstanding (000's) - basic           85,106                     85,106
    Weighted average shares
     outstanding (000's) - diluted         85,106                     85,106
    ----------------------------------- -------------------------------------
    ----------------------------------- -------------------------------------

    a. One time payment from Baxter International Inc. related to amended
       and restated Distribution and License Agreement and certain other
       non-recurring, non-operating license revenue.
    b. Research and development adjustments:
       ----------------------------------------------------------------------
                                               Three months    Three months
                                                    ended           ended
                                              March 31, 2009  March 31, 2008
                                             --------------------------------
       Stock-based compensation                   $   (101)       $   (311)
       Termination and reorganization costs              -            (630)
       Non-recurring research and development
        expenses and intellectual property
        license agreement                             (313)           (625)
       ----------------------------------------------------------------------
                                                  $   (414)       $ (1,566)
                                             --------------------------------

    c. Selling, general and administrative adjustments:
       ----------------------------------------------------------------------
                                               Three months    Three months
                                                    ended           ended
                                              March 31, 2009  March 31, 2008
                                             --------------------------------
       Stock-based compensation                   $   (283)       $   (506)
       Termination and reorganization costs           (934)         (2,448)
       Litigation expenses                            (747)         (1,598)
       Non-recurring transaction fees                 (619)              -
       ----------------------------------------------------------------------
                                                  $ (2,583)       $ (4,552)
                                             --------------------------------
    d. Amortization of acquisition related intangible assets and medical
       technologies.
    e. Non-recurring in-process research and development expense relating to
       payments made to licensors and collaborators.
    f. Foreign exchange fluctuations on foreign currency net monetary assets.
    g. Realized loss on write-down of assets.
    h. Amortization of deferred financing costs.
    i. Tax effects of adjustments a. through h. for the period.



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

                                                 Three months ended March 31,
    (in thousands of U.S.$)                               2009          2008
    -------------------------------------------- ----------------------------

    Net loss on a GAAP basis                       $    12,444       (15,763)
    Interest expense on long-term debt                  10,044        12,120
    Income tax expense (recovery)                        5,724        (3,814)
    Depreciation and amortization                        9,161         9,448
    -------------------------------------------- ----------------------------

    EBITDA                                              37,373         1,991
    Adjustments:
    Non-recurring revenue, net of license fees         (25,053)          (53)
    In-process research and development                      -         2,500
    Non-recurring research and development                 313           625
    Stock-based compensation                               384           817
    Litigation expenses                                    747         1,598
    Foreign exchange loss (gain)                          (732)         (423)
    Investment and other income                             15          (756)
    Severance and restructuring                            934         3,078
    Non-recurring financing costs                          619             0
    -------------------------------------------- ----------------------------
    -------------------------------------------- ----------------------------
    Adjusted EBITDA                                   $ 14,600         9,377
    -------------------------------------------- ----------------------------
    -------------------------------------------- ----------------------------



                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (Unaudited)

    As at                                             March 31,  December 31,
    (in thousands of U.S.$)                               2009          2008
    -------------------------------------------------------------------------
    ASSETS
    Cash and short-term investments                $    66,218   $    39,800
    Accounts receivable                                 28,270        25,524
    Inventories                                         39,530        38,594
    Deferred income taxes                                3,834         3,820
    Other current assets                                 3,842         5,234
    -------------------------------------------------------------------------
    Total current assets                               141,694       112,972
    -------------------------------------------------------------------------
    Long-term investments                                1,561         1,561
    Assets held for sale                                 8,422         8,422
    Property and equipment, net                         47,860        49,108
    Intangible assets, net                             187,224       195,477
    Deferred financing costs                            13,692        11,363
    Other assets                                           708         6,294
    -------------------------------------------------------------------------
    Total assets                                   $   401,161   $   385,197
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' DEFICIT
    Current liabilities                            $    66,367   $    61,415
    Long-term debt                                     575,000       575,000
    Deferred income taxes                               38,955        40,577
    Other tax liabilities                                3,160         3,145
    Other long-term liabilities                          5,027         4,933
    Shareholders' deficit                             (287,348)     (299,873)
    -------------------------------------------------------------------------
    Total liabilities and shareholders' deficit    $   401,161   $   385,197
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    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," "estimates," "continues," "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 "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 2009 and beyond, our strategies
or future actions, our targets, expectations for our financial condition and
the results of, or outlook for, our operations, research, development, 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 and 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 pre-clinical 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; and any other factors referenced in our
other filings with the Securities and Exchange Commission ("SEC") and
applicable Canadian regulatory authorities. For a more thorough discussion of
the risks associated with our business, see the "Risk Factors" section in our
annual report for the year ended December 31, 2008 filed with the SEC on Form
10-K.
    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.

    (C)2009 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: DeDe Sheel, Investor Relations and Corporate
Communications, Angiotech Pharmaceuticals, Inc., (415) 293-4412,
dede.sheel@fdashtonpartners.com

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Angiotech Pharmaceuticals, Inc.

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