Angiotech posts wider 2Q loss on research costs

Medical product maker Angiotech Pharmaceuticals Inc. reported a wider second-quarter loss Monday as its research and development costs grew.

Angiotech posted a loss of $26.1 million, or 31 cents per share, compared with $15.2 million, or 18 cents per share, a year ago. Its revenue grew 5 percent to $76.1 million from $72.4 million, as better product sales offset a decrease in royalty revenue.

Product sales rose 19 percent to $50.5 million, while royalty revenue fell 15 percent to $25.5 million.

Excluding one-time costs from the most recent quarter and from the second quarter of 2007, Angiotech said it lost $7.4 million, or 9 cents per share, down from a profit of $5 million, or 6 cents per share, a year earlier.

According to Thomson Financial, analysts expected an adjusted loss of 2 cents per share on $74.4 million in revenue.

Research and development costs increased to $18.6 million from $13.5 million a year ago, as Angiotech also took $1.4 million in costs in the latest quarter to end distribution of its Contour Threads sutures.

Angiotech of Vancouver, British Columbia, stopped distributing Contour products and discontinued the brand in order to promote the Quill SRS line, which Angiotech acquired in its 2006 buyout of Quill Medical Inc.

In afternoon trading, Angiotech shares fell 11 cents, or 4.9 percent, to $2.14.