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Angiotech Pharmaceuticals, Inc. (ANPI) Announces Cost Reduction Initiatives

Angiotech Pharmaceuticals, Inc. (NASD: ANPI), a developer of treatments for cancer, arthritis, and other diseases characterized by inappropriate cell proliferation and blood vessel growth, recently announced that the company is considering various initiatives to decrease operating costs and to better structure its business focus, pending continued exploration of alternatives to support the organization’s balance sheet and current capital structure.

Angiotech’s senior management team is working to determine if it will be able to consummate the company’s previously announced transaction with Ares Management and New Leaf Venture Partners, or other potential transaction alternatives with Ares and New Leaf. Additionally, the company recently announced plans to withdraw its outstanding tender offers for its Senior Floating Rate Notes and its Senior Subordinated Notes.

Focusing on its most promising near-term product opportunities, including Quill™ SRS, HemoStream™ Chronic Dialysis Catheter, the Option™ Inferior Vena Cava Filter and the Bio-Seal™ Lung Biopsy System, the company expects to further reduce spending on certain research and development relating to various earlier stage new product initiatives. The company believes these steps are necessary to provide the opportunity for Angiotech to be able to achieve its goal of achieving positive consolidated free cash flow for the fourth quarter of 2008.

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