Angiotech Pharmaceuticals, Inc. Notified of Aborted Merger with Guidant Corporation

Strategic Insights -

Angiotech Pharmaceuticals, Inc. and its corporate partner, Cook Incorporated, were set to merge with Guidant Corporation. However, due to Guidant's announcement that conditions for the merger are "not expected to be satisfied," the deal has been put on hold. Guidant cited the entry of a final judgment against Cook in its lawsuit against Boston Scientific, a permanent injunction against Cook, and the results of preliminary data from the DELIVER trial as reasons for the decision. Meanwhile, paclitaxel-eluting stents have consistently demonstrated impressive safety and efficacy results, with a 3.1 percent restenosis rate in the ASPECT trial and a zero percent thrombosis rate in the TAXUS I study.

Key Takeaways:

  • The merger between Angiotech Pharmaceuticals, Inc., Cook Incorporated, and Guidant Corporation has been aborted due to Guidant's announcement that conditions for completion are "not expected to be satisfied."
  • Conditions for completion included the entry of a final judgment against Cook in its lawsuit against Boston Scientific, a permanent injunction against Cook, and the results of preliminary data from the DELIVER trial.
  • Paclitaxel-eluting stents developed by various companies have demonstrated impressive safety and efficacy results, including a 3.1 percent restenosis rate in the ASPECT trial and a zero percent thrombosis rate in the TAXUS I study.
  • Guidant's paclitaxel trial used a polymer-free drug delivery system, whereas its announced pending drug-coated stent studies will not utilize this system.
  • Angiotech Pharmaceuticals, Inc.'s president and CEO, William L. Hunter, MD, MSc, expressed concern over the distraction caused by the Cook/Guidant litigation with Boston Scientific.
  • The recent clinical data from Angiotech-related programs is being promoted as"a remarkable clinical data" which has gone unnoticed due to the litigation.

Statistics:

  • 3.1 percent restenosis rate in the ASPECT trial (Cook)
  • 4.0 percent restenosis rate in the ELUTES trial (Cook)
  • Zero percent thrombosis rate in the TAXUS I study (Boston Scientific)
  • Zero percent restenosis rate in diabetics in the TAXUS II study (Boston Scientific)
  • 1.6 percent in-stent restenosis rate in the TAXUS II study (Boston Scientific)

Sources:

  • Cook Incorporated
  • Boston Scientific Corporation
  • Angiotech Pharmaceuticals, Inc.
  • http://www.angiotech.com/ (press release by Angiotech)