Angiotech Pharmaceuticals, Inc. Announces Licensing Agreement with Boston Scientific Corporation

Angiotech Pharmaceuticals, Inc., a leading developer of innovative medical technologies, has announced that Boston Scientific Corporation has elected to become the exclusive worldwide licensee to Angiotech's coronary drug-eluting stent technology. This agreement will have a significant impact on Angiotech's revenue streams, with the company set to receive increased royalties from Boston Scientific's sales of licensed coronary vascular products, such as Taxus.

The terms of the agreement, which were established in 1997, will see Boston Scientific's royalty obligation increase by 1%, resulting in a 14% increase in Angiotech's Taxus royalty revenues. This will elevate the royalty tiers to 6%, 8%, and 11%, respectively. Furthermore, Angiotech has granted Boston Scientific the right to sublicense the drug-eluting coronary vascular technology to third parties for approximately $14 million and other contingent amounts. This move not only enhances Angiotech's strategic and economic position but also provides the company with the potential for substantial payments and augmented royalty rates in the event of sublicensing.

Key Takeaways:

• Angiotech Pharmaceuticals, Inc. has entered into a licensing agreement with Boston Scientific Corporation, granting the latter exclusive worldwide licensure to Angiotech's coronary drug-eluting stent technology.
• The agreement will increase Boston Scientific's royalty obligation by 1%, resulting in a 14% increase in Angiotech's Taxus royalty revenues, elevating the royalty tiers to 6%, 8%, and 11%.
• Angiotech has granted Boston Scientific the right to sublicense the drug-eluting coronary vascular technology to third parties for approximately $14 million and other contingent amounts.
• The agreement is expected to have a significant impact on Angiotech's revenue streams, providing the company with improved potential returns and substantial payments.
• Angiotech's pioneering drug-eluting stent technology, Taxus, has been a groundbreaking success, with sales exceeding $1.6 billion worldwide as of September 30, 2004.

Statistics:

• Boston Scientific's royalty obligation increased by 1% under the terms of the agreement.
• Angiotech's Taxus royalty revenues are set to increase by approximately 14%.
• The royalty tiers will be elevated to 6%, 8%, and 11% respectively.
• Boston Scientific has the option to sublicense the drug-eluting coronary vascular technology to third parties for approximately $14 million and other contingent amounts.
• Total worldwide sales of Taxus surpassed $1.6 billion as of September 30, 2004.

Sources:

• Health & Medicine Week editors via NewsRx.com & NewsRx.net (Copyright 2005)