Angiotech Announces Results for Second Quarter Ended March 31st, 2001.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--May 15, 2001

(Nasdaq:ANPI) (TSE:ANP.)

The second quarter of fiscal 2001 saw the Company make significant progress in the clinical development for its paclitaxel-coated stent program and treatment for secondary progressive multiple sclerosis (SPMS).

In March, our stent partner, Cook Incorporated, became the first company to receive U.S. Food and Drug Administration (FDA) approval to evaluate a paclitaxel-coated coronary stent in U.S. patients. Cook's paclitaxel-coated Logic(TM) Coronary Stent will be examined in patients with symptomatic ischemic heart disease, or with a positive cardiac stress test due to de novo lesions in native coronary arteries. The FDA approval to begin pivotal studies in the U.S. is a significant event in the evolution of coronary stent technology. It seems almost appropriate given that Cook was also the first company to obtain approval for a (bare) coronary stent in the U.S. almost 10 years ago. Cook is currently also conducting multi-center trials of a paclitaxel-coated coronary stent in both Europe and Asia, and we look forward to final results later on in the year from both those studies.

Towards the end of March, we saw the completion of Quanam's acquisition by our other corporate stent partner, Boston Scientific. Since Quanam's product falls under the license agreement between Angiotech and Boston Scientific, it removes any intellectual property risk that may have existed prior to the acquisition. Boston Scientific's recent announcement to discontinue enrollment in Quanam's European studies was a result of protocol violations that occurred prior to Boston Scientific's acquisition of the company. This does not impact Angiotech's original product development timeline based on our original agreement in 1997. Progress on Boston Scientific's paclitaxel-coated NIR(R) and Express(TM) stents is moving forward on schedule.

Also in March, Angiotech announced the completed enrollment of its 189-patient, Phase 2 clinical study for the use of Micellar Paclitaxel in the treatment of patients with secondary progressive multiple sclerosis (SPMS). To date, there have been no drug-related serious adverse events reported in the patients enrolled in the nine-month study. The double-blind, placebo-controlled study is being conducted at nine centers across Canada. The primary objective of the study is to determine the difference in new lesion activity in the Micellar Paclitaxel treatment groups relative to the control group during the treatment phase, as demonstrated by magnetic resonance imaging (MRI). Results from this study will be available in early 2002.

Thank you again for your support and we look forward to significant progress in the coming quarter.

Best regards, William L. Hunter, MD, MSc, Chairman and CEO  Donald E. Longenecker, PhD, President and COO

A conference call on Angiotech's Q2 Financials will be held on Tuesday, May 15th, 2001 at 2:00 PM PST. The call will be webcast on Angiotech's website at www.angiotech.com. A recording of the call will be available until May 22nd, 2001 by calling [phone] and entering Access Code 18787130.

Angiotech Pharmaceuticals, Inc. (NASDAQ:ANPI; TSE:ANP) has released financial results for its second quarter ended March 31, 2001. All amounts are in Canadian dollars.

Net income for the second quarter was approximately $1.1 million or $0.07 per share, as compared to a net loss of approximately $3.4 million or $(0.25) per share for the same period in 2000. Interest income from investments for the quarter increased by 335% to approximately $2.4 million, as compared to approximately $0.6 million for the same period in 2000. Research and development expenditures increased by 77% to approximately $4.4 million during the quarter compared to approximately $2.5 million for the same period in 2000. This increase reflected the full enrolment of patients in the Company's phase 2 clinical study for secondary progressive multiple sclerosis.

The Company had available cash resources of approximately $161.8 million as of March 31, 2001.

This press release contains forward-looking statements. The Company wishes to caution the reader of this press release that actual results may differ from those discussed in the forward-looking statements and may be adversely affected by, among other things, the ability of the Company to implement its product development programs as well as its overall business strategy, competitive offerings, third party intellectual property rights and other factors described in the Company's filing with the Securities and Exchange Commission.

ANGIOTECH PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

                                       Three Months     Six Months
(In thousands of CDN$,                Ended March 31, Ended March 31,
 except per share data)                2001    2000    2001    2000
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Revenue                                $  0 ($1,859)   $  0 ($4,118)
Research and development expenses     4,462   2,514   7,929   4,037
General and administration            2,316   1,277   3,352   2,108
Amortization                            526     391   1,039     672
Foreign exchange (gain) loss         (5,991)  1,621  (5,791)  1,648
Interest income                      (2,414)   (554) (4,977)   (930)
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Income (loss) for the period          1,101  (3,390) (1,552) (3,417)
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Income (loss) per common share         0.07   (0.25)  (0.10)  (0.25)
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Weighted average shares outstanding  15,378  13,576  15,356  13,431
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ANGIOTECH PHARMACEUTICALS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

(In thousands of CDN$)            March 31, 2001  September 30, 2000
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Assets
Current assets:
  Cash and short-term investments       $161,789            $160,295
  Other current assets                       483                 183
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      Total current assets               162,272             160,478
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Capital assets, net                        1,172               1,192
Medical technology, net                    3,492               4,259
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                                        $166,936            $165,929
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Liabilities and Shareholders' Equity
  Accounts payable and
   accrued liabilities                     4,171               2,381
  Shareholders' equity                   162,765             163,548
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                                        $166,936            $165,929
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Statements contained herein that are not based on historical fact, including without limitation statements containing the words "believes", "may", "will", "estimate", "continue", "anticipates", "intends", "expects" and words of similar import, constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, both nationally and in the regions in which the Company operates; technology changes; competition; changes in business strategy or development plans; the ability to attract and retain qualified personnel; existing governmental regulations and changes in, or the failure to comply with, governmental regulations; liability and other claims asserted against the Company; and other factors referenced in the Company's filings with the Securities and Exchange Commission. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.