Angiotech Pharmaceuticals, Inc. narrowed its losses in the third quarter as the medical-device company recovered from the impact of a huge writedown of goodwill assets a year ago.
The Vancouver-based company posted a loss of $7.8-million or 9 cents per share in the quarter ended Sept. 30.
This was an improvement from a year-ago loss of $622.4-million or $7.31 a share in third quarter of 2008 when the company wrote down the value of its goodwill assets by $612.9-million. This came from its 2006 purchase of devices company American Medical Instrument.
Revenue from all sources fell to $63.2-million, from $68.4-million a year ago.
After adjustments to exclude certain non-cash and non-recurring items, Angiotech said it earned $72,000 or nil cents per share. Adjusted revenue for the quarter remained flat at $63.2-million.
As revenue slipped, Angiotech recorded $14.5-million in royalty revenues for the quarter, down from $21.4-last year. The decrease was attributed to new competition in the drug market and resulting shifts in market share among competitors.
The company said its Proprietary Medical Products sector - which is marketed and sold by two direct sales groups - saw revenue rise by 33 per cent from year-ago levels.
Angiotech said the division, which includes the company's Quill SRS wound closure product line and its Vena Cava filter, continued to show higher revenue growth compared to its overall product portfolio.
However, the Base Medical Products division saw revenue slide by four per cent in the third quarter. This was attributed to lower sales of medical device components to third party medical device manufacturers.
Angiotech said customers postponing or cancelling orders, or reducing inventory in response to harsh economic conditions contributed to the slide in sales.
"We were pleased to observe continued strong sales growth in our Proprietary Medical Products business during the quarter, driven primarily by increasing market adoption of our Quill SRS product line," said William Hunter, Angiotech's president and chief operating officer.
Hunter added that the company's solid results from the recent launch of its Option Inferior Vena Cava Filter, and its preparations of a potential 2010 launch of an anti-infective product, left Angiotech "increasingly optimistic" about future growth in its Proprietary Medical Products business.
The company's shares closed at $1.49 Friday on the Toronto Stock Exchange.