Canada's Angiotech Pharmaceuticals is restructuring its operations as a badly needed investment of up to $300 million appears to be in doubt now. Ares Management and New Leaf Venture Partners had planned to sink $200 million to $300 million into a newly created subsidiary of the developer, but the company acknowledges now that recent events in the capital market are putting that financial aid in doubt.
Angiotech--a pharma and medical device company--says it will shutter research and manufacturing facilities in Rochester, NY, as well as other laboratory space, cut staff and delay the launch of a central venous catheter. Angiotech's coating process had been key to the success of drug-eluting stents, but that sector has come under considerable pressure from safety concerns. The company also moved its annual meeting to the last week in October.
"Our board of directors believes that despite the growth and progress we've seen this year in our medical products businesses, it is in the best interest of Angiotech and its shareholders to take action now to adjust our business and operating structure in order to achieve cost savings and to further focus our business initiatives," said CEO Dr. William Hunter.
- check out Angiotech's release
- read the report from the Canadian Press