Angiotech Pharmaceuticals (ANPI), a global specialty pharmaceutical and medical device company, announced its financial results for the first quarter 2008. Angiotech reported a $3.9 million loss for the first quarter, which equals a 5 cent loss per share. Analysts had projected a loss of 3 cents per share.
Angiotech made a number changes in their internal control systems to strengthen their financial reporting process and reduce the incidence of errors. The weakness in the process was described in the March 13, 2008 release that announced the company’s 2007 year-end financial results. Angiotech has engaged a large public accounting firm to provide additional resources and guidance in the preparation of further quarterly results.
Recently Angiotech made a decision to suspend enrollment in the clinical studies of its Vascular Wrap™ product. The company will investigate alternative methods for future funding and development of the Vascular Wrap™, including potential partnerships. Due to the delay with the latest product, Angiotech will implement expenditure reduction measures to create positive cash flow and net profitability by fourth quarter 2008. The company anticipates the potential for additional cash at between $8 million and $12 million through the proposed sale of real estate assets in the second half of 2008.
“We had a strong product sales performance. It was broad-based and every business line was at or above our Q1 targets. In addition we have four new brands expected to launch in 2008,” said Thomas Bailey, Chief Financial Officer at Angiotech. “We expect 15 percent growth in top line product sales for the year. We also expect margin improvements in the second half. Our cash burn is biased in Q1 and Q3 with limited cash burn expected in Q2.”
“Our base business is ahead of plan, and we are on plan for promoted brands,” added Dr. William Hunter, President and CEO of Angiotech. “Product sales grew across all of our business lines, our promoted brands had strong revenues across the board, sales for our Quill SRS product, which continues to generate excitement in the physician community, were in line with our expectations, and our 5-FU CVC product was approved by the FDA ahead of our expected timeline.”
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