Investor sees greater value in Angiotech Pharmaceuticals, suggests recapitalization, possible sale

By Lisa Kerner

Charlotte, N.C., Sept. 25 - West Coast Asset Management, Inc. said it believes Angiotech Pharmaceuticals, Inc.'s underlying business and prospects are worth far in excess of its current enterprise value.

Angiotech is worth at least $6.00 per share net of debt and has the potential to exceed $20.00 per share over the next five years, West Coast said in a schedule 13D filed with the Securities and Exchange Commission.

The company's stock (Nasdaq: ANPI) closed at $0.78 on Thursday.

West Coast also believes a recapitalization of Angiotech can be achieved "in a manner which preserves a very significant amount of upside for existing equity holders," the filing said.

The investor said it has been pursuing a possible transaction with some private equity investors to find an alternative that preserves value for equity holders, such as providing or facilitating a senior revolving credit facility, taking Angiotech private or a merger.

As a result, West Coast and its affiliates, with a 13% interest in the company, may discuss Angiotech's operations with management, board members, other shareholders and third parties, it said in the filing.

Angiotech is a Vancouver, B.C.-based specialty pharmaceutical and medical device company.

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