Last Wednesday, there was another blow for Angiotech Pharmaceuticals Inc. It received a Notice of Termination from Rex Medical L.P. regarding the supply and distribution agreement between the two companies. In the release, Rex claims that Angiotech “has materially breached its obligations under the mentioned deal. This means that the company has practically lost one of its valuable partners.
Further two weeks before that, Angiotech was thrown out of the prestigious Nasdaq Stock Market for non-compliance with the Nasdaq’s Listing Rules. The company had to transfer its shares to the OTCQB marketplace.
In the light of these negative events, it makes little wonder that the shares of the company are sinking. On the TSE, the stock has lost almost 54% since New Year and is presently at a two-year low of $0.165 per share. On the American OTCQB market, on Friday ANPI slumped heavily by 61% within the day, falling to its all-time low of $0.066 on an enormous turnover of over 11M shares traded.
For now, it seems there is not much hope for the stock of Angiotech Pharmaceuticals to revive soon. Of course, everything is far from lost. At the end of September 2010, the company had over 31M in cash. Even that, however, seems very modest compared to the tremendous long-term debt of almost $586M. Besides, Angiotech recorded a $18.5M net loss for the third quarter of 2010. Additionally, the company has to pay $6M to QSR Holdings, Inc. in accordance with a settlement agreement with the latter as announced on Friday.
Perhaps, it is now of vital importance for Angiotech to renew its trading on the TSE as soon as possible. Only when this happens, we could talk of a possible come-back for the company’s shares.
