1096481--3/16/2010--ANGIOTECH_PHARMACEUTICALS

related topics

{product, candidate, development}

{debt, indebtedness, cash}

{property, intellectual, protect}

{product, liability, claim}

{regulation, government, change}

{investment, property, distribution}

{stock, price, share}

{customer, product, revenue}

{product, market, service}

{personnel, key, retain}

{capital, credit, financial}

{condition, economic, financial}

{provision, law, control}

{operation, international, foreign}

{cost, regulation, environmental}

{control, financial, internal}

{acquisition, growth, future}

Risks Related to Our Business We have historically been unprofitable and may not be able to achieve and maintain profitability. Our obligation to pay cash interest on our notes has had, and we expect will continue to have, an adverse effect on our liquidity. We have recently effected reductions in our operating costs and as a result, our ability to cut costs further may be limited. We depend on BSC for a significant amount of our revenues and cash flows, and for the management and development of TAXUS product franchise. BSC may be enjoined from the selling, or otherwise become subject to limitations applicable to its ability to sell, TAXUS in the United States. Many of the products we are depending on to grow our business are not yet ready for sale or have only recently been introduced for sale. Our success depends on the successful commercialization of our technology. We may be unsuccessful in marketing, selling and distributing certain of our products. If our products are alleged to be harmful, we may not be able to sell them, we may be subject to product liability claims not covered by insurance and our reputation could be damaged. We face and will continue to face significant competition. The commercial potential of our products and product candidates will be significantly limited if we are not able to obtain adequate levels of reimbursement or market acceptance for them. We depend on our strategic collaborators for the development, regulatory approval, testing, manufacturing and the potential commercialization of our products. If our process related to product development does not result in an approved and commercially successful product, our business could be adversely affected. Our planned clinical trials may not begin on time, or at all, and our planned and ongoing clinical trials may not be completed on schedule, or at all. Pre-clinical development is a long, expensive and uncertain process, and we may terminate one or more of our ongoing pre-clinical development programs. We may not be able to protect our intellectual property or obtain necessary intellectual property rights from third parties, which could adversely affect our business. If certain single-source suppliers fail to deliver key product components in a timely manner, our manufacturing ability would be impaired and our product sales could suffer. If physicians do not recommend and endorse our products or products that use our technology, or if our working relationships with physicians deteriorate, our products or products that use our technology may not be accepted in the marketplace, which could adversely affect our sales and royalty revenues. If we are unable to license new technologies to utilize in the development of products, or our existing license agreements are terminated, our ability to maintain our competitive advantage in our existing products and to develop future products may be adversely affected. Compulsory licensing and/or generic competition may affect our business in certain countries. We may incur substantial costs as a result of litigation or other proceedings relating to patent and other intellectual property rights. Our ability to operate could be hindered by the proprietary rights of others. Technological advances and evolving industry standards could reduce our future product sales, which could cause our revenues to grow more slowly or decline. We may be subject to damages resulting from claims that we or our employees have wrongfully used or disclosed alleged trade secrets of their former employers. We may incur significant costs complying with environmental laws and regulations. Future legislation or regulatory changes to, or consolidation in, the healthcare system may affect our ability to sell our product profitably. We must receive regulatory approval for each of our product candidates before they can be sold commercially in Canada, the United States or internationally, which can take significant time and be very costly. Our products and manufacturing facilities that have, or may receive, regulatory approval, are or will be subject to ongoing regulation. In addition, we have little or no control over the manufacturing facilities of our collaborators in which certain of our products are manufactured. If we are unable to fully comply with federal and state fraud and abuse laws , we could face substantial penalties, which may adversely affect our business, financial condition and results of operations. Consolidation in the healthcare industry could have an adverse effect on our revenues and results of operations. We may incur losses associated with foreign currency fluctuations. Acquisition of companies or technologies may result in disruptions to our business. If we fail to hire and retain key management, scientific and technical personnel, we may be unable to successfully implement our business plan. Risks Relating to our Indebtedness, Shares, and Organization and Structure Our existing indebtedness has adversely affected our operations and we may need to restructure our existing debt to ensure that our cash flows are adequate to service our debt. If our cash flows prove inadequate to service our debt and provide for our other obligations, we may be required to refinance all or a portion of our existing debt or future debt at terms unfavorable to us. The indentures governing the Floating Rate Notes and Subordinated Notes and the agreement govering our revolving credit facility contain covenants that may limit our ability to take advantage of certain business opportunities advantageous to us that may arise. The current global credit and financial market conditions may exacerbate certain risks affecting our business. We and our subsidiaries are permitted to incur substantially more debt, which could further exacerbate the risks associated with our leverage. The NASDAQ and/or the Toronto Stock Exchange may delist our common shares from quotation on its exchange, which could limit investors ability to make transactions in our common shares and subject us to additional trading restrictions. United States investors may not be able to obtain enforcement of civil liabilities against us. Laws and provisions in our notice of articles, articles, shareholder rights plan and stock option plan could delay or deter a change in control.

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1096481--3/16/2010--ANGIOTECH_PHARMACEUTICALS_INC