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Angiotech Pharmaceuticals Inc. 10 July 2008

Company News Alert

Angiotech’s NASDAQ common stock price declined 12% in a single trading session

NASDAQ HOLD Angiotech Pharmaceuticals Inc.’s (Angiotech) NASDAQ common stock price declined significantly on
9Direct
July 2008access
due to to the fullofreport
downgrading free oflongcharge
the company’s at Credit Rating (CCR) by the
term Corporate
Common http://www.iirgroup.com/researchoracle/viewreport/show/20270
credit rating agency Standard & Poor’s (S&P) from B- to CC in view of the company’s proposed
refinancing of debt. We are concerned about a possible further downgrade by S&P, which will further
Stock hinder the company to organize debt financing at affordable rates going forward. Consequently we
reiterate our HOLD rating for the NASDAQ common stock.
Ticker: ANPI
Target price: US$3.19
Current price: US$2.46
Price change since (14.0%) We will reassess the NASDAQ common stock rating in our 2Q 08 update report once the company
last report: announces its 2Q 08 results in August 2008.

Canadian HOLD Although we continue to anticipate a significant positive currency impact on the Canadian stock over
our investment horizon, we reiterate the Canadian stock a HOLD based on our fundamental outlook.
Stock
Ticker: ANP.TO
Target price: C$3.38
Current price: C$2.55
Price change since (13.0%) We will reassess the Canadian stock rating in our 2Q 08 update report once the company announces
last report: its 2Q 08 results in August 2008.

Supervisor: Ujwal Shah

Investment horizon - short term actionable trading strategies
Analyst: Raghvendra Pathak This report addresses the needs of strategic investors with a long term investment horizon of 6-24 months. If
Editor: Adil Bahar, PhD. this report is provided to you by your broker under the Global Settlement, you may now also access (free of
Global Research Director: charge) the short term trading outlook that we publish from time to time for this issuer, looking at the coming
Satish Betadpur, CFA 5-30 days for readers with a shorter trading horizon. These are available online only at
www.researchoracle.com.
Next news due: 2Q 08 results,
August 2008
We reiterated the NASDAQ common stock a BUY in our 1Q 08 update report, dated 16 June 2008,
with a 6-24 month target price of US$3.19 per share, representing an upside of 12%. The Canadian
stock was reiterated a BUY with a 6-24 month target price of C$3.38 representing an upside of 15%.
Since then the common stock price have depreciated 14.0% to closed at US$2.46 on 9 July 2008. The
Canadian stock price have also declined 13.0% to closed at C$2.55 on 9 July 2008.

Our NASDAQ common stock target price was achieved on 19 June 2008. Consequently, we
downgraded the NASDAQ common stock from a BUY to a HOLD in our special alert dated 19 June
2008. The Canadian stock was also downgraded from a BUY to a HOLD. Since then, the Angiotech
NASDAQ common stock price has depreciated 29.7% to close at US$2.46 on 9 July 2008.

However, on 9 July 2008, the NASDAQ common stock price experienced a significant decline of 12.5%
in one trading session to close at US$2.46. The significant decline in the common stock price was
attributable to credit rating agency Standard & Poor’s (S&P) decision to downgrade angiotech’s long
term Coporate Credit Rating (CCR) from B- to CC after the company’s decision to refinace its debt by
floating a subsidary (as discussed in our company news alert dated 8 July 2008). In addition S&P has
placed the rating on credit watch on negetive implicationwhich implies that S&P can resort to further
downgrading the CCR rating to Selective Default (SD) if the proposed refinancing of debt is
successfully implemented. Although the current price no longer supports our HOLD rating, we remain
concerned about the possible default situation, and believe the current CCR downgrade by S&P will
prove a hindrance for any future debt issuance plans at attractive rates for the company.
Consequently, we maintain our current HOLD rating.

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