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Angiotech Pharmaceuticals Inc. Tel. +44 (0)20 7232 3090 Fax +44 (0)20 7232 3099 www.iirgroup.com LSE:

Angiotech Pharmaceuticals Inc.

10 July 2008

Company News Alert

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

NASDAQ

HOLD

Common

Stock

Ticker:

ANPI

Target price:

US$3.19

Current price:

US$2.46

Price change since last report:

(14.0%)

We will reassess the NASDAQ common stock rating in our 2Q 08 update report once the company announces its 2Q 08 results in August 2008.

Canadian

HOLD

Stock

Ticker:

ANP.TO

Target price:

C$3.38

Current price:

C$2.55

Price change since last report:

(13.0%)

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.

We will reassess the Canadian stock rating in our 2Q 08 update report once the company announces its 2Q 08 results in August 2008.

Supervisor: Ujwal Shah Analyst: Raghvendra Pathak Editor: Adil Bahar, PhD. Global Research Director:

Satish Betadpur, CFA

Next news due: 2Q 08 results, August 2008

Investment horizon - short term actionable trading strategies

This report addresses the needs of strategic investors with a long term investment horizon of 6-24 months. If this report is provided to you by your broker under the Global Settlement, you may now also access (free of charge) the short term trading outlook that we publish from time to time for this issuer, looking at the coming 5-30 days for readers with a shorter trading horizon. These are available online only at www.researchoracle.com .

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.