VANCOUVER, Nov. 24 /PRNewswire/ - Angiotech Pharmaceuticals,
Inc. (NASDAQ: ANPI; TSX: ANP) ("Angiotech" or the "Company")
today announced that Rex Medical LP ("Rex") has initiated
arbitration and court proceedings against Angiotech
Pharmaceuticals, (US), Inc. ("Angiotech US") with respect to the
parties' respective rights and obligations under the License,
Supply, Marketing and Distribution Agreement between Angiotech US
and Rex, dated March 13, 2008 (as
amended, the "Agreement").
Subsequent to various business discussions
between the parties, Angiotech determined its need to deliver a
notice to Rex, which stated Angiotech's determination that in light
of the Company's recent and substantially changed business,
operating and liquidity conditions, it would not be commercially
reasonable for Angiotech to continue with the existing structure of
the Agreement. Subsequent to its receipt of said notice, Rex
commenced arbitration proceedings in which it alleges that
Angiotech wrongfully terminated the Agreement and are seeking
monetary damages in excess of $3
million as well as costs, fees and expenses in connection
with the arbitration proceeding.
In addition to the arbitration proceedings, Rex
has initiated an action in the United States District Court for the
Southern District of New York,
entitled Rex Medical, LP v. Angiotech Pharmaceuticals (US), Inc.,
1:10-cv-08746-CM (the "Federal Injunction Litigation"). The
Petition in the Federal Injunction Litigation seeks temporary and
preliminary injunctive relief in aid of the arbitration. Over
Angiotech's objection, Rex has been granted a temporary restraining
order requiring Angiotech to continue performing under the
Agreement pending the Court's consideration of Rex's petition for a
preliminary injunction in aid of the arbitration. The Court
is scheduled to hear arguments on Monday,
November 29, 2010 at 10:00
a.m. with respect to a preliminary injunction.
Given the early stages of these proceedings, it is
not possible at this time to predict the outcome of the Federal
Injunction Litigation or the arbitration. The Company intends
to vigorously defend both the Federal Injunction Litigation and the
arbitration.
Forward Looking Statements
Statements contained in this press release that are not based on
historical fact, including without limitation statements containing
the words "believes," "may," "plans," "will," "estimates,"
"continues," "anticipates," "intends," "expects" and similar
expressions, constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of
1995 and constitute "forward-looking information" within the
meaning of applicable Canadian securities laws. All such statements
are made pursuant to the "safe harbor" provisions of applicable
securities legislation. Forward-looking statements may involve, but
are not limited to, comments with respect to our objectives and
priorities for the remainder of 2010 and beyond, our strategies or
future actions, our targets, expectations for our financial
condition and the results of, or outlook for, our operations,
research and development and product and drug development. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
events or developments to be materially different from any future
results, events or developments expressed or implied by such
forward-looking statements. Many such known risks,
uncertainties and other factors are taken into account as part of
our assumptions underlying these forward-looking statements and
include, among others, the following: general economic and business
conditions in the United States,
Canada and the other regions in
which we operate; market demand; technological changes that could
impact our existing products or our ability to develop and
commercialize future products; competition; existing governmental
legislation and regulations and changes in, or the failure to
comply with, governmental legislation and regulations; availability
of financial reimbursement coverage from governmental and
third-party payers for products and related treatments; adverse
results or unexpected delays in pre-clinical and clinical product
development processes; adverse findings related to the safety
and/or efficacy of our products or products sold by our partners;
decisions, and the timing of decisions, made by health regulatory
agencies regarding approval of our technology and products; the
requirement for substantial funding to conduct research and
development, to expand manufacturing and commercialization
activities; and any other factors that may affect our performance.
In addition, our business is subject to certain operating risks
that may cause any results expressed or implied by the
forward-looking statements in this press release to differ
materially from our actual results. These operating risks include:
our ability to attract and retain qualified personnel; our ability
to successfully complete pre-clinical and clinical development of
our products; changes in our business strategy or development
plans; our failure to obtain patent protection for discoveries;
loss of patent protection resulting from third-party challenges to
our patents; commercialization limitations imposed by patents owned
or controlled by third parties; our ability to obtain rights to
technology from licensors; liability for patent claims and other
claims asserted against us; our ability to obtain and enforce
timely patent and other intellectual property protection for our
technology and products; the ability to enter into, and to
maintain, corporate alliances relating to the development and
commercialization of our technology and products; market acceptance
of our technology and products; our ability to successfully
manufacture, market and sell our products; the availability of
capital to finance our activities; our ability to restructure and
to service our debt obligations; and any other factors referenced
in our other filings with the applicable Canadian securities
regulatory authorities or the Securities and Exchange Commission
("SEC"). For a more thorough discussion of the risks associated
with our business, see the "Risk Factors" section in our annual
report for the year ended December 31,
2009 filed with the SEC on Form 10-K, as amended, and our
quarterly report for the 3rd quarter of 2010 filed with the SEC on
Form 10-Q.
Given these uncertainties, assumptions and
risk factors, investors are cautioned not to place undue reliance
on such forward-looking statements. Except as required by law, we
disclaim any obligation to update any such factors or to publicly
announce the result of any revisions to any of the forward-looking
statements contained in this press release to reflect future
results, events or developments.
©2010 Angiotech Pharmaceuticals, Inc. All Rights
Reserved.
About Angiotech
Angiotech Pharmaceuticals, Inc. is a global specialty
pharmaceutical and medical device company. Angiotech
discovers, develops and markets innovative treatment solutions for
diseases or complications associated with medical device implants,
surgical interventions and acute injury. To find out more about
Angiotech (NASDAQ: ANPI, TSX: ANP), please visit our website at
www.angiotech.com.
SOURCE Angiotech Pharmaceuticals, Inc.
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