Angiotech Pharmaceuticals wants doctors to get the most out of single-use medical devices. The company's Medical Device Technologies segment makes the Quill wound closure system and other single-use medical products and device components for interventional radiology (cancer treatment), ophthalmology (optical care), wound care, and other surgical procedures. Through its Licensed Technologies segment, the company has also developed medical products that combine devices with drugs to make them more effective, such as the TAXUS drug-eluting stent, which Boston Scientific markets (paying Angiotech royalties on TAXUS sales). Angiotech restructured and emerged from Canadian bankruptcy protection during 2011.
The company filed for protection from its creditors under Canada's Companies' Creditors Arrangement Act in 2011, gaining some breathing room as it grappled with financial challenges. It successfully restructured and eliminated some $250 million of debt obligations through a recapitalization shortly after entering into the agreement. Its financial troubles began in 2008 when sales of the TAXUS drug-coated stents dropped sharply after concerns were raised that such stents might increase a patient's risk of blood clots.
Angiotech has operations primarily in the US, which accounts for about 60% of revenues, as well as in Europe, Latin America, Canada, and the Asia/Pacific region.
Sales and Marketing
Angiotech's medical devices and device components are marketed directly to doctors, hospitals, and clinics, as well as to equipment distributors and third-party manufacturers (for incorporation into their own devices). The company no longer actively promotes the legacy technologies within its licensed technologies segment, though it receives royalties from existing licensing partners.
While the company has restructured its debts, Angiotech continues to feel the effects of lower sales of TAXUS. The company has reported declining revenues over the last five years, including a 5% drop in revenues in 2011 (to $233 million) attributed to decreased TAXUS royalties and decreased licensing and device sale revenues on discontinued products. Profits jumped back into the black (to some $319 million) in 2011 as Angiotech's restructuring measures substantially reduced expenses.
In recent years Angiotech has shifted its focus away from its pharmaceutical technologies segment to concentrate more on its medical device division. Specifically Angiotech is focusing on increasing sales of existing products such as its Quill knotless tissue-closure device, BioSeal lung biopsy system, and Sharpoint surgical devices through specialized marketing efforts. It is also working to develop new devices and components in the fields of interventional oncology, ophthalmology, and wound closure.
To boost distribution of its wound closure devices, in 2012 the company sold certain intellectual property relating to the Quill product line to Johnson & Johnson's Ethicon unit for $20 million (plus up to $42 million in milestone payments). Through the agreement, Angiotech will continue to market Quill on its own, while serving as the exclusive manufacturer of Quill products sold by Ethicon.
JP Morgan Clearing owns a 29% stake in Angiotech. – less