July 28, 2008 / 12:51 PM / 10 years ago

UPDATE 1-Angiotech loss widens, set to meet sales goals

(In U.S. dollars. Adds details)

TORONTO, July 28 (Reuters) - Angiotech Pharmaceuticals ANP.TO ANPI.O reported a wider second-quarter loss on Monday, amid falling royalty revenues for its drug-coated stents, but said it still expects to meet its full-year sales growth targets.

Angiotech, which makes the coating for Boston Scientific Corp’s (BSX.N) stents, said it lost $26.1 million, or 31 cents a share, during the quarter, compared with a loss of $15.2 million, or 18 cents a share, for the same period last year.

Adjusted to exclude noncash and nonrecurring items, Angiotech reported a loss of $7.4 million, or 9 cents a share, for the quarter. That compares with a profit of $5 million, or 6 cents a share, a year earlier.

Revenue was $76.1 million, up 5.1 percent from $72.4 million in the correspondent period last year.

Analysts were expecting a loss of 13 cents a share and revenue of $74.4 million after exceptional items, according to Reuters Estimates.

Royalty revenue derived from the stents — tiny devices used to prop open arteries — was $25.5 million, down from $29.9 million for the same time last year.

Product sales, including sales from its medical devices division, rose to $50.5 million, from $42.4 million for the same time last year.

Angiotech said it was still confident that it would meet its full year objectives for sales growth, margin improvement and new product introductions.

In late April, it forecast research and clinical expenses in a range between $30 million and $38 million, down from $45 million to $50 million.

It also lowered its sales and marketing expenses to between $45 million and $55 million, from between $50 million and $60 million.

Earlier this month, the company said it would form a new subsidiary and raise more than $300 million in a notes offering to reduce the cumbersome debt load created by its 2006 purchase of American Medical Instruments.

The specialty pharmaceutical and medical device company said it would create Angiotech Pharmaceutical Interventions (API) to focus on business other than its Taxus coronary stent system, on which it has relied too heavily in the past. ($1=$1.02 Canadian) (Reporting by Scott Anderson; editing by Janet Guttsman)

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