Angiotech to Close Plant and Delay Product, Financing

Angiotech Pharmaceuticals Inc., a Canadian developer of drug-coated medical devices, plans to cut jobs, close a plant and delay a new product. It also may drop a financing deal and will withdraw offers to buy outstanding notes.

The actions follow a cost-cutting plan announced in April, the Vancouver, British Columbia, company said in a statement. Further steps are needed, Angiotech said. Angiotech has been hurt by declining sales of drug-coated heart stents by partner Boston Scientific Corp. of Natick, MA.

The company’s manufacturing and research center in Rochester, NY, will be closed in December 2009, and Angiotech said it will postpone the scheduled introduction of a drug-coated catheter, the 5-FU CVC. Office and laboratory space will be cut or eliminated in Vancouver, as well as in North Bend, WA, and Herndon, VA.

Moreover, the company will determine whether it can complete its previously announced arrangement with the investment management firm Ares Management LLC, of Los Angeles, CA, and the venture capital firm New Leaf Venture Partners, of New York, NY, and Menlo Park, CA. Angiotech announced in July that it would sell $200 million to $300 million in convertible notes to Ares and New Leaf in an effort to form a new operating unit and reduce debt.

The company “plans to withdraw its outstanding tender offers for its senior floating rate notes and its senior subordinated notes.”

SOURCE: Bloomberg