Lower Stent Coatings Revenue Hurts Angiotech

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Angiotech Pharmaceuticals(ANPI) reported on March 5, 2009 that its Q4 FY08 net loss widened, hurt by a write-down of goodwill and lower stent coatings revenue. Q4 FY08 net loss was $76.96 million or $0.90 per share, compared to a loss of $27.86 million or $0.29 per share in Q4 FY07. Adjusted net loss narrowed to $2.62 million or $0.03 per share from $17.04 million or $0.20 per share. The most recent consensus estimate was a loss of $0.01 per share.

Total revenue dropped 13.0% to $62.08 million from $71.36 million in Q4 FY07. Royalty revenue plunged 42.3% to $15.68 million from $27.16 million. Product sales advanced 4.8% to $46.05 million from $43.94 million. However, License revenue surged 32.3% to $352,000 from $266,000.

License and royalty fees expenses declined 38.7% to $2.77 million, but the cost of products sold increased 0.2% to $23.62 million. Research and development expenses slipped 43.0% to $7.72 million from $13.56 million in Q4 FY07. Selling and administrative expenses dipped 20.2% to $21.38 million from $26.78 million.

ANPI's partner, Boston Scientific, recently received approval from the US Food and Drug Administration to market and sell the second generation TAXUS Liberte Paclitaxel-Eluting Coronary Stent System in the United States.

FY08 net loss widened to $741.18 million or $8.71 per share from $65.94 million or $0.66 per share a year ago. Annual revenue declined 1.5% to $283.27 million from $287.69 million in FY07.

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