Knobias Clip Report (09-22-2008) ANPI
Submitted By Knobias ClipReport
ANPI: Announces Reorganization and Cost Reduction Initiatives
By Fain Hughes, fhughes@knobias.com
Angiotech Pharmaceuticals, Inc. (ANPI) announced that it is pursuing various initiatives to reduce operating costs and to further focus its business efforts, pending continued exploration of alternatives to the Company’s balance sheet and current capital structure. Options to be explored, among others, include determining whether the Company will be able to consummate its previously announced transaction with Ares Management and New Leaf Venture Partners, or other potential transaction alternatives with Ares and New Leaf. In addition, Angiotech also announced plans to withdraw its outstanding tender offers for its Senior Floating Rate Notes and its Senior Subordinated Notes, pending resolution of these discussions and actions.
The Company expects to focus remaining investment and resources on its most promising near term product opportunities, including Quill(TM) SRS and certain new interventional radiology products, including the HemoStream(TM) Chronic Dialysis Catheter, the Option(TM) Inferior Vena Cava Filter and the Bio-Seal(TM) Lung Biopsy System, and therefore to further reduce spending on certain research and development relating to various earlier stage new product initiatives.
The announced reorganization and cost reduction initiatives are, in certain cases, in addition to the selected expense reduction actions announced in April 2008, and are actions the Company believes are necessary to provide the opportunity for Angiotech to be able to achieve its previously stated goal of achieving positive consolidated free cash flow (after the incurrence of net interest expense) during the fourth quarter of 2008.
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