Event Brief of Q2 2005 Angiotech Pharmaceuticals Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

CORPORATE PARTICIPANTS

. Todd Young, Angiotech Pharmaceuticals, Inc., VP, IR & Communications

. David Hall, Angiotech Pharmaceuticals, Inc., CFO . William Hunter, Angiotech Pharmaceuticals, Inc., President & CEO . Rui Avelar, Angiotech Pharmaceuticals, Inc., SVP, Medical Affairs & Communications . Tom Bailey, Angiotech Pharmaceuticals, Inc., VP, Business Development

OVERVIEW

ANPI reported 2Q05 total revenue of $53.7m and GAAP EPS of $0.18. 2Q05 adjusted operating EPS amounted to $0.24. CapEx for the remainder of 2005 is expected to be approx. $2m. Q&A Focus: Peripheral program, European patent situation, and Vascular Wrap.

FINANCIAL DATA

A. Key Data From Call 1. 2Q05 total revenues = $53.7m. 2. 2Q05 GAAP EPS = $0.18. 3. 2Q05 adjusted operating EPS = $0.24. 4. Cash growth in 2Q05 = $36m. 5. CapEx expectations for the remainder of 2005 = approx. $2m.

PRESENTATION SUMMARY

S1. 2Q05 Financials (D.H.) 1. General Information: 1. Consolidated financial statements are reported in accordance with US GAAP and the Co.'s reporting currency is the US dollar. 2. Reported adjusted operating net income or loss: 1. Subtracts one-time revenue events. 2. Adds back stock-based compensation expense.

3. Impact of FX fluctuations relating to domiciling of cash balances. 4. Acquisition-related amortization charges. 5. Acquired in-process R&D relating to license agreements and acquisitions.

3. Adjusted operating net income or loss measures do not have any

standardized meaning prescribed by GAAP, and therefore may not

be comparable to similar measures presented by other issuers.

4. ANPI uses non-GAAP or adjusted operating measures to establish

operational goals. 2. Key Financial Highlights: 1. Total revenue was $53.7m. 1. $49.4m or 92% of which was derived from the paclitaxel-eluting stent royalties received from the Co.'s partner, Boston Scientific. 2. Implied gross royalty rate recorded based on Boston Scientific's paclitaxel-eluting stent systems' sales for their March qtr. was 8.5% for sales in the US and 6.8% in the rest of the world. 1. This is compared to 8.6% in the US and 6.6% in the rest of the world during 1Q05. 3. GAAP EPS amounted to $0.18. 4. Adjusted operating EPS amounted to $0.24. 5. ANPI established ADDVANCE (Angiotech Drug Device Venture and Capital Enterprises) as its corporate venture capital arm.

1. Since the introduction of ADDVANCE, the Co. completed two

license agreements with Broncus Technologies and Histogenics. 3. EPS Adjustments: 1. The total adjustments amounted to:

1. Reduction of revenue by $568,000. 2. Reduction of expenses by $7.5m. 3. A back out of FX gain of $688,000. 4. A back out of a one-time tax benefit of $1.5m. 5. The tax effect of the above adjustments of approx. $1.6m. 2. These adjustments yield an adjusted EPS of $0.24 consistent with previous guidance.

4. Adjustments Breakdown: 1. For revenue adjustments, a back out of $568,000 in one-time revenues recorded primarily related to the Broncus Technologies transaction. 1. This sum represents the estimated value of the consideration the Co. received in the form of warrants to purchase Broncus Technologies' common stock.

2. Adjustments to variable expenses were marginal at $53,000 and

related to a one-time sublicense fee payable to the NIH, which

related to the Broncus transaction. 3. In the bucket of budgeted expenses, the Co. backed out a total of $5.3m, of which:

1. $1.3m was in stock-based compensation. 2. $400,000 was in restructuring costs related to the consolidation of the Palo Alto operation. 3. $3.6m was related to a one-time payment to an opposition

party in the European Patent Opposition Proceedings. 4. ANPI's activity-based expenses included an exclusion of $153,000 of restructuring costs related to the consolidation of its Palo Alto operation. 5. Adjustments for amortization of acquisition-related intangible assets and medical technologies amounted to $2m.

6. FX currency adjustments related to the FX fluctuations of

domiciling of US and Canadian dollars, and amounted to gain of

$700,000 being backed out. 7. ANPI also backed out $1.4m from the recognition of a one-time tax credit, as well as $1.6m being the tax effect of all of the above-mentioned adjustments.

8. The total adjustments produced an adjusted EPS of $0.24. 5. Rolling Quarterly Revenue Summary: 1. DES stent royalties remained by far the most significant contributor to the total revenue on an historical basis, and will remain the Co.'s key revenue driver. 2. Other revenues amounted to $3.7m. 1. These revenues are expected to be in approx. the same range in 3Q05. 3. 3Q05 TAXUS revenues are expected to be in the $44-45m range depending on the mix of sales in the different royalty jurisdictions and the payoff levels achieved. 1. The June qtr. was the final qtr. in which the Co. received royalties revenues in a 11% payout from Boston Scientific and that in all subsequent quarters the highest royalty percentage the Co. would receive on drug-eluting stent sales

would …