Drug maker Angiotech Pharmaceuticals Inc. says it will file for protection from creditors as it moves forward with a restructuring plan. The Vancouver-based company, once one of Canada's most commercially successful biotechnology firms, said it will make the voluntary move under the Companies' Creditors Arrangement Act after receiving approval from its board.
The struggling biotech developer has been trying to pay off its mounting debts and the latest move is expected to eliminate $250-million worth of senior subordinated notes and obligations and improve its finances.
"After concluding many months of deliberations with various parties, we have elected to pursue the completion of our proposed recapitalization transaction through a CCAA proceeding," president and CEO William Hunter said in a release.
"We believe that this approach will best facilitate the expedient conclusion of our proposed recapitalization, and thereby allow us to achieve the improvements to our liquidity and capital structure that will be necessary to pursue our business goals."
In the meantime, the company said it will be business as usual.
Angiotech built its business on specialty medical devices and is best-known for co-developing and producing - along with U.S.-based partner Boston Scientific - coated stents used in angioplasty heart surgeries.
The coating developed by Angiotech reduces the risk of rejection of the stents, which are implanted to reinforce blood vessels.