Angiotech Pharmaceuticals acquires manufacturing, intellectual property rights from Haemacure

Apr 8 2010

Angiotech acquires manufacturing and intellectual property rights to develop human biological adhesives, hemostats and therapeutic proteins

Angiotech Pharmaceuticals, Inc. ( ANPI, TSX: ANP), a specialty pharmaceutical and medical device company, today announced the closing of its acquisition of certain product candidates and technology assets of Haemacure Corporation ("Haemacure"). Haemacure has been involved in proceedings under Canada's Bankruptcy and Insolvency Act and Chapter 11 of the United States Bankruptcy Code.

Through an asset sale transaction, Angiotech has acquired all of the relevant research and development activities, manufacturing operations, key personnel, and intellectual property rights necessary to pursue the commercialization of Haemacure's human biomaterial product candidates, namely fibrin sealant and thrombin hemostat. The proprietary fibrin sealant is made of two human plasma proteins, fibrinogen and thrombin, which are extracted from human blood plasma through a proprietary, high-yield, low-cost extraction manufacturing process.

The surgical sealant and hemostat market is estimated to be in excess of $500 million annually in the U.S. The acquired fibrin sealant and thrombin hemostat product candidates have applications in a wide array of surgical specialties, including general and abdominal surgery, cardiothoracic and vascular surgery, gynecology and urology surgery and reconstructive and plastic surgery. In addition, Angiotech believes that these biomaterials may be effective drug delivery vehicles.

"We took an important step today by adding new technologies that will provide multiple new product candidates for our surgical business. We now have the capability to develop, manufacture and commercialize fibrin sealant, fibrinogen and thrombin-based biomaterials as competitive and compelling stand alone products, and the ability to develop drug-loaded versions of these biomaterials without relying on external suppliers," said Dr. William Hunter, President and CEO of Angiotech. "With these biologics assets and our proprietary Quill(TM) SRS product line, we believe we have formed a surgical franchise that can provide innovative products for patients and our physician customers, as well as strong revenue growth, for many years to come."

Prior to its acquisition, the fibrin sealant has been studied in several clinical trials. Thus far clinical data have demonstrated the fibrin sealant is well tolerated in patients. Efficacy data has shown the fibrin sealant has potential as a hemostatic agent. As a result of the change of manufacturing facilities for these product candidates, additional phase III clinical testing will be required by the FDA.

In June 2009, Angiotech provided Haemacure a US$2.5 million senior secured bridge loan as part of a collaboration that provided Angiotech with certain technology and product distribution rights. On January 11, 2010, Haemacure announced that it had filed a notice of intention to make a proposal to its creditors under the Bankruptcy and Insolvency Act (Canada), and that its wholly-owned U.S. subsidiary sought court protection under Chapter 11 of the Bankruptcy Code in the U.S. On March 22, 2010, Haemacure announced that it had obtained authorization from the Superior Court of the Province of Québec to sell its assets to Angiotech and that the U.S. Bankruptcy Court had authorized the sale to Angiotech of the assets of Haemacure's U.S. subsidiary.

At closing, Angiotech estimates that it will have funded approximately US$1.5 million in additional transaction-related expenses, which include the funding of Haemacure's insolvency proceedings and day-to-day operations, legal fees and expenses. Angiotech expects that modest additional expenditures for research and development may be required in 2010, depending upon final decisions as to product development timelines and the operations and personnel of Haemacure's manufacturing facility. These potential expenditures are not expected to materially impact Angiotech's liquidity position and capital resources in 2010. Additional information regarding the impact of this transaction, and Angiotech's future plans regarding its liquidity position and capital resources, will be provided upon the release of our first quarter financial results in early May 2010.