VANCOUVER, Feb. 14 /PRNewswire-FirstCall/ - Angiotech Pharmaceuticals, Inc. , a global specialty pharmaceutical and medical device company, today announced unaudited interim and annual consolidated financial results for the fourth quarter and year ended December 31, 2007. The unaudited financial results are subject to further review and potential adjustment as described under the section “Financial Information”.
“Throughout 2007, we continued to build our business with the launch of new products, the receipt of regulatory approvals, and the establishment of new partnerships. We expect our new product pipeline and our portfolio of innovative currently marketed products to provide growth and opportunity in 2008 and beyond,” said Dr. William Hunter, President and CEO of Angiotech.
“With our expanded sales and marketing team in place and many of our reorganization activities completed, we believe that we are well positioned to achieve our targets for sales growth and gross margin improvements in the coming year,” said Tom Bailey, Chief Financial Officer of Angiotech. “We are confident that during 2008 we will begin to realize returns on the various investments we have made in our business over the last two years.”
Our financial outlook for the upcoming fiscal year ending December 31, 2008 is presented below. Several material factors and assumptions were used to derive our 2008 outlook, including: (i) estimates of medical procedure and patient population growth rates for the various end markets relating to our medical products business; (ii) estimates of the impact of pricing changes, pricing strategies and competition with respect to certain of our currently marketed medical products; (iii) competitive analysis and estimates of relative market share with respect to certain key product lines; (iv) estimates of revenue growth and customer composition relating to our sales of medical device components to other medical products companies; (v) analysis of the impact of our manufacturing consolidation, product sales mix and pricing on cost of goods sold; (vi) estimates of selling, general and administrative expenses necessary to support our revenue growth and overall business goals; and (vii) estimates of research and clinical expenses necessary to support our various new product development and research programs.
The outlook presented below contains estimates of certain expenses based on non-GAAP measures, and are prepared consistent with our current and previous presentations of our historical financial information. Specifically, our outlook for research and clinical expenses, sales and marketing expenses and general and administrative expenses exclude estimates for stock based compensation expenses, for certain non-recurring expenses expected to be incurred in the first half of 2008 related to the completion of the consolidation of our Syracuse, NY operations, and for certain litigation related expenses. The estimates for these certain operating expenses are inherently unpredictable or subject to significant fluctuation for reasons unrelated to our business performance.
Our financial outlook is forward-looking information, and actual results may be materially different from any results, events or developments expressed or implied by our financial outlook. We expect our financial results may vary from the outlook provided as a result of several key factors, including the progress of our various research, clinical development and product launch initiatives, the achievement of selected sales growth targets and the timing of product sales growth, the outcome of various ongoing partnering, business development and financing discussions, and the level of royalty revenues we receive from our partner BSC in future periods and the impact such results may have on our election to pursue certain discretionary aspects of our budgeted expenses in 2008. It is expected that, at the present time, we will have adequate cash and liquidity resources to execute our various research, product development and growth initiatives in 2008.
Our financial outlook is provided to give investors an assessment of our expected financial results and our future business, and may not be appropriate for any other purposes. Given the risks, uncertainties and assumptions associated with such information, readers are cautioned not to place undue reliance on our financial outlook. Except as required by law, we disclaim any obligation to update our financial outlook.
Financial Information
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This press release contains the condensed financial information derived from the preliminary unaudited interim consolidated financial statements for the three month periods ended December 31, 2007 and 2006, and preliminary unaudited consolidated financial statements for the years ended December 31, 2007 and 2006 as previously reported. The unaudited financial information presented should be considered preliminary and is subject to potential adjustments, including, but not limited to, potential adjustments to certain tax related items, pending the conclusion of the 2007 year-end audit. Upon completion of the 2007 year-end audit process and the approval of our full year 2007 audited consolidated financial statements by our Board of Directors, full audited consolidated financial statements and Management’s Discussion and Analysis for the three years ended December 31, 2007, will be filed with the relevant regulatory agencies, as well as posted on our website at www.angiotech.com.
We completed the acquisition of the operations of American Medical Instruments Holdings, Inc. (“AMI”) on March 23, 2006. Because of the timing of the AMI acquisition, our operating results for the twelve month period ended December 31, 2006 include AMI’s results of operations from the period of March 24, 2006 to December 30, 2006, as compared to the current twelve month period which reflects combined results for the full year. As a result, our results for the twelve months ended December 31, 2007 do not reflect a comparable operating period as compared to the nine months ended December 31, 2006.
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
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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, and potential future costs, related to our offer to accept returns of Contour Threads brand product as part of our announced brand name consolidation and discontinuation. 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
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A conference call to discuss these financial results will be held today, Thursday, February 14, 2008 at 8:00 AM PT (11:00 AM ET).
A replay archive of the conference call will be available until February 21, 2008 by calling (888) 286-8010 (in North America) or (617) 801-6888 (International) and entering Access Code 85112963.
A live webcast will be available to all interested parties through the Investors section of Angiotech’s website: www.angiotech.com.
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 please visit our website at www.angiotech.com.
CONTACT: Jodi Regts, Senior Manager, Investor Relations and Corporate Communications, Angiotech Pharmaceuticals, Inc., (604) 221-7930, jregts@angio.com; Deirdre Neary, Manager, Investor Relations and Corporate Communications, Angiotech Pharmaceuticals, Inc., (604) 222-7056 dneary@angio.com
CONTACT: Jodi Regts, Senior Manager, Investor Relations and Corporate
Communications, Angiotech Pharmaceuticals, Inc., (604) 221-7930,
jregts@angio.com; Deirdre Neary, Manager, Investor Relations and Corporate
Communications, Angiotech Pharmaceuticals, Inc., (604) 222-7056
dneary@angio.com
