Angiotech's Q1 revenues rise as net loss grows.

Flat revenues and complications with the testing of an implantable device for hemodialysis patients led to a $3.9 million first-quarter loss at Angiotech Pharmaceuticals Inc., a drug and medical device manufacturer.

The Vancouver, British Columbia-based company reported revenues of $76.6 million, an anemic 1.7% rise over the $75.4 million it generated in the first quarter of last year. Net loss, meanwhile, was $15.8 million, up from $12.3 million last year. Basic net loss for the period that ended March 31 was 19 cents per share, compared with a loss of 8 cents per share in 2007.

Despite the significant loss, company executives remained upbeat about the first-quarter results. "We believe our first-quarter financial results represent a turning point for Angiotech," said Thomas Bailey, Angiotech's chief financial officer. "We were able to deliver solid sequential revenue growth as compared to the previous quarter, which we see as a milestone given the typical seasonal quarterly patterns, and we are beginning to see improvements in our operating margins ahead of schedule."

Angiotech reported a 10% increase in revenue in its Interventional and Specialties businesses. The company sells medical devices and device components to third-party device manufacturers under its Specialties business, which benefited from the addition of new customers and the "improved stability and order levels" in its existing customer base, according to a news release.

Buoyed by the company's solid sales growth, Angiotech executives revised the company's outlook for 2008 and set specific goals, including attaining total revenue growth of 15% or more in medical product sales, reducing research and clinical expenses by $12 million to $15 million, and generating between $8 million and $12 million in cash revenues.

Angiotech also plans to continue its efforts in getting its Vascular Wrap product to market. In mid-April, the company announced that it had suspended enrollment in its Vascular Wrap clinical trials in the United States and Europe after noticing an imbalance of infections in the two study groups. Executives said the company plans to look for alternative funding for the development of the Vascular Wrap, a device used to treat complications associated with vascular graft implants.