VANCOUVER, Nov. 1 /PRNewswire-FirstCall/ - Angiotech Pharmaceuticals, Inc. , a global specialty pharmaceutical and medical device company, today announced its full financial results for the third quarter ended September 30, 2007.
“During this past quarter, there has been significant progress made on several key products nearing commercial launch, including FDA approval of the HemoStream(TM) chronic dialysis catheter, FDA clearance and CE Mark approvals for a variety of Quill(TM) SRS products, and positive results from our pivotal CVC study,” said Dr. William Hunter, President and CEO of Angiotech. “After completing the build out of our U.S. surgical sales force in the third quarter, we were in an excellent position to showcase our Quill(TM) SRS product line at the recent Annual Meeting of the American Society of Plastic Surgeons (ASPS), and we were pleased to find that the response from physicians far exceeded expectations.”
On October 19, 2007, immediately following the release of BSC’s third quarter 2007 financial results, Angiotech released preliminary results for the third quarter of 2007 and updated its 2007 outlook for royalty revenue, product sales, and Adjusted EBITDA.
Financial Update:
The following includes additional financial updates subsequent to the press release from October 19, 2007:
We caution that the information contained in the press release concerning our revised outlook for 2007 is forward-looking and, accordingly, actual results may differ materially.
Financial Information
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This press release contains the condensed financial statements derived from the unaudited consolidated interim financial statements for the three- and nine-month periods ended September 30, 2007, and audited consolidated financial statements for the year ended December 31, 2006. Full unaudited consolidated interim financial statements and Management’s Discussion and Analysis for the three- and nine month periods ended September 30, 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 nine month period ended September 30, 2006 include AMI’s results of operations from the period of March 24, 2006 to September 30, 2006, as compared to the current nine month period which reflects combined results from the period of January 1, 2007 to September 30, 2007. As a result, our results for the nine months ended September 30, 2007 do not reflect a comparable operating period as compared to the nine months ended September 30, 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 income from continuing operations, adjusted net income 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 income from continuing operations, adjusted net income 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 income from continuing operations, adjusted net income per share from continuing operations, revenue from continuing operations, 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 adjusted net income per share amounts 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, November 1, 2007 at 8:00 AM PT (11:00 AM ET).
A replay archive of the conference call will be available until November 8, 2007 by calling (888) 286-8010 (in North America) or (617) 801-6888 (International) and entering Access Code 15190735.
A live webcast will be available to all interested parties through the Investors section of Angiotech’s website: www.angiotech.com.
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 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 drug discovery and clinical development processes; 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 commercialization activities or consummate acquisitions; sales numbers and future guidance publicly provided by Boston Scientific Corporation regarding sales of their paclitaxel-eluting coronary stent products; 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 report 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 ability of Boston Scientific Corporation to successfully manufacture, market and sell their paclitaxel-eluting coronary stent products; the continued availability of capital to finance our activities; our ability to continue to integrate into our business the operations of American Medical Instruments Holdings, Inc. (“AMI”); our ability to achieve the operational and other synergies and the other commercial or financial benefits expected as a result of the acquisition of AMI; and any other factors referenced in our annual information form and other filings with the applicable Canadian securities regulatory authorities or the SEC. Given these uncertainties, assumptions and risk factors, readers are cautioned not to place undue reliance on such forward-looking statements. 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.
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: Media: Jodi Regts, Senior Manager, Corporate Communications, Angiotech Pharmaceuticals, Inc., (604) 221-7930, jregts@angio.com; Analysts and Investors: Deirdre Neary, Manager, Investor Relations, Angiotech Pharmaceuticals, Inc., (604) 222-7056, dneary@angio.com
CONTACT: Media: Jodi Regts, Senior Manager, Corporate Communications,
Angiotech Pharmaceuticals, Inc., (604) 221-7930, jregts@angio.com; Analysts
and Investors: Deirdre Neary, Manager, Investor Relations, Angiotech
Pharmaceuticals, Inc., (604) 222-7056, dneary@angio.com
