Angiotech Signs License and Development Agreement with C.R. Bard, Inc.; Alliance for Perivascular Treatment of Restenosis Associated with Vascular Grafts.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 22, 1998-- Angiotech Pharmaceuticals, Inc. (TSE:ANP) is pleased to announce that it has entered into a CAD$30 million exclusive, worldwide license and development agreement with C.R. Bard, Inc. (NYSE:BCR) and its vascular graft subsidiary IMPRA, Inc.

The alliance provides for the use of paclitaxel and other related compounds for the perivascular treatment of restenosis associated with vascular surgery. As part of the agreement, Angiotech will receive upfront license fees, milestone payments and royalties, while both companies will make financial commitments to product development and will jointly develop the licensed products.

PERIVASCULAR TREATMENT OF RESTENOSIS

Restenosis, commonly associated with cardiovascular stent failure, does not only occur in areas of the heart. In fact, restenosis can and does occur following any invasive surgical procedure where a blood vessel is injured. This includes synthetic and autologous graft implantation where restenosis is the primary cause of long-term failure. For example, each year over 50 percent of hemodialysis patients with vascular access grafts (greater than 200,000 patients in the U.S.) will require re-intervention to eliminate an obstruction associated with restenosis.

To reduce the incidence of restenosis following graft implantation, Angiotech has developed drug-loaded perivascular wraps for treatment of restenosis from the "outside-in" (see Figure 1). These wraps can be applied at all vascular graft implantation sites (see Figure 2), allowing drug concentrations to remain highest in regions where biological activity is most needed. Preclinical studies conducted by Angiotech have verified the ability of these wraps to prevent restenosis.

Figures are available on Angiotech's website, www.angiotech.com.

IMPRA is a leading provider of products used in vascular surgery. It is anticipated that the perivascular wraps to be developed under the collaboration will also have potential for use with native or autologous grafts as well. This could significantly expand the potential market for these products.

"Perivascular treatments represent a new and exciting approach to combating restenosis associated with vascular grafts," said William L. Hunter, MD, MSc, Chairman and CEO of Angiotech. "This collaboration with Bard/IMPRA will allow us to expand our commitment to local therapeutic approaches to the treatment of vascular disease."

"IMPRA is committed to improving the quality of life for patients suffering from vascular disease," said John McDermott, President of IMPRA. "Angiotech's proprietary perivascular technology may provide us with an opportunity to achieve these goals by reducing the need for re-interventions following vascular surgery."

This program combines the research and intellectual property efforts of Harvard University (Elazer Edelman, Morris Karnovsky and David Adams), The University of Washington (Marc Mayberg), The National Institutes of Health (James Kinsella and Steven Sollott), The University of British Columbia (Helen Burt, John Jackson and Lindsay Machan) and Angiotech (William Hunter).

C.R. Bard, Inc. is a worldwide leader in developing, manufacturing, and supplying healthcare products that focus on vascular, urology and oncology disease states. In addition, Bard offers a complete line of advanced surgical products and services that address needs in hernia repair, performance irrigation, hemostasis, and other areas. Bard markets its products and services worldwide to hospitals, individual health care professionals, extended care facilities and alternate site facilities. Bard pioneered the development of single-patient-use medical products for hospital procedures; today Bard is dedicated to pursuing technological innovations that offer superior clinical benefits while helping to reduce overall costs.

Angiotech Pharmaceuticals, Inc. is a Canadian pharmaceutical company engaged in the development and commercialization of novel treatments for chronic inflammatory and angiogenesis-dependent diseases such as restenosis, rheumatoid arthritis, multiple sclerosis and psoriasis. The Company's initial technologies are based on the reformulation of the anticancer drug, paclitaxel, into medical device coatings, systemic treatments and topical gels. On the medical device side, Angiotech has entered into a CAD$32 million co-exclusive license agreement with Boston Scientific Corporation and Cook Incorporated for stent coatings and other endoluminal devices for the treatment of restenosis.