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Angiotech Pharmaceuticals Inc. 08 July 2008

Company News Alert

Angiotech to separate operating and royalty business

NASDAQ HOLD Angiotech Pharmaceuticals Inc. (Angiotech) announced on 7 July 2008 that it has decided to establish
a Direct
separate access
subsidiary,toAngiotech
the fullPharmaceutical
report freeInterventions
of charge(API).at API will be responsible for
Common http://www.iirgroup.com/researchoracle/viewreport/show/20237
managing operating business assets and intellectual property other than intellectual property and
royalty revenue related to TAXUS coronary stent system. However, we believe the separation of
Stock businesses will not have any significant revenue impact, going forward. Consequently our outlook for
the company remains unchanged therefore we reiterate our HOLD rating for the NASDAQ common
stock.
Ticker: ANPI
Target price: US$3.19
Current price: US$2.75
Price change since (3.8%) We will reassess the NASDAQ common stock rating in our 2Q 08 update report once the company
last report: announces its 2Q 08 results in August 2008.

Canadian HOLD Although we continue to anticipate a significant positive currency impact on the Canadian stock over
our investment horizon, we reiterate the Canadian stock a HOLD based on our fundamental outlook.
Stock
Ticker: ANP.TO
Target price: C$3.38
Current price: C$2.83
Price change since (3.4%) We will reassess the Canadian stock rating in our 2Q 08 update report once the company announces
last report: its 2Q 08 results in August 2008.

Supervisor: Ujwal Shah

Investment horizon - short term actionable trading strategies
Analyst: Raghvendra Pathak This report addresses the needs of strategic investors with a long term investment horizon of 6-24 months. If
Editor: Adil Bahar, PhD. this report is provided to you by your broker under the Global Settlement, you may now also access (free of
Global Research Director: charge) the short term trading outlook that we publish from time to time for this issuer, looking at the coming
Satish Betadpur, CFA 5-30 days for readers with a shorter trading horizon. These are available online only at
www.researchoracle.com.
Next news due: 2Q 08 results,
August 2008
On 7 July 2008, Angiotech announced the establishment of a subsidiary, Angiotech Pharmaceutical
Interventions (API) in order to manage part of its operating business assets and intellectual property.
API has entered into an agreement with Ares Management LLC and New Leaf Venture Partners for the
purchase of convertible notes of US$200-US$300 mn issued by API, which will be converted into
32%-48% of equity interest after 30 September 2008. Angiotech will retain 52%-68% of ownership in
the newly formed API.

Angiotech will utilise the proceeds from the transaction to repay its outstanding debt in order to reduce
its cash interest expense and improve its interest coverage ratio. This transaction will also enable
Angiotech to unlock value of products other than TAXUS coronory stent and will support the company
to raise significant capital to fullfill current capital needs, with limited dilution of stakes in the newly
formed API. The formation of the new subsidiary is not expected to have sigificant revenue impact,
going forward, and hence we maintain our HOLD rating for the NASDAQ common stock.

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