"I am not prepared to claim everything is now fixed, but certainly things are a lot better than they were in the last little bit," president and CEO William Hunter told shareholders at the company's annual meeting Thursday.
"We appear to have survived the storm."
"I don't think we believe that the balance sheet we have it now is ideal. However we have managed to cut costs and have a number of product launches that have pulled us through the worst of it," Hunter added.
Vancouver-based Angiotech makes products used in various types of surgeries including the Taxus drug-coated stent used in heart surgery to prop open coronary arteries and the Quill wound-closure device.
Taxus was a huge success for Angiotech and its partner Boston Scientific until concerns emerged in 2006 that drug-coated stents carry a higher risk of rare instances of potentially fatal blood clots.
Its market share was further eroded by new competitors.
Hunter said the technology has been proven and recommended in independent studies since then, and that he expects Taxus to remain an important part of the business.
"Taxus I think, I hope, has actually bottomed out and is starting to recover," Hunter said, adding there is also a rebound in the coronary stent field.
"I think it's going to be a nice long-term brand for the company."
In an interview after the meeting, Hunter said the key is keeping Taxus sales where they are, which was around $13 million in the first quarter. That compares to about $50 million when the product was at its peak in early 2005.
"If Taxus were to grow a little bit that would be great, but I think what we are looking from that franchise is primarily stability," Hunter said.
Hunter said the real growth in future will come from the company's other products, such as Quill.
"The wound closure market is a one-to-two billion dollar opportunity and we think we have a category killer there," Hunter said.
On Wednesday, Angiotech said it finalized a collaboration deal with Montreal-based drug developer Haemacure Corp., (TSX:HAE) which makes plasma-derived proteins for use in surgeries and other medical procedures.
As part of the agreement, Angiotech has agreed to provide up to US$2.5 million to Haemacure, with the option of investing another US$1 million.
Hunter said the deal is part of a long-term strategy to be able to implant drugs at the time of surgery that prevent such side effects as pain or bleeding.
As for acquisitions, Hunter said: "I don't expect we'll be acquiring and I don't expect we'll be acquired."
Angiotech has been struggling with falling sales and financing issues.
Last fall, two private equity firms pulled out of a plan to invest up to $300 million in a proposed restructuring of the company.
Angiotech, facing a potential cash crunch, had been looking for financing alternatives before the Wells Fargo deal was announced in March.
Angiotech recently reported a first-quarter profit of $12.4 million thanks to a one-time $25.1-million payment from a partner, reversing a year-ago loss of $15.8 million. Revenue, including the payment, rose to $88.3 million from $76.7 million
The payment from Baxter International Inc. (NYSE:BAX) in the first quarter was related to an amended distribution and licence agreement.
$4.48 in premarket
