SOURCE: The Medicines Company

The Medicines Company

April 28, 2010 08:00 ET

FOR U.S. AUDIENCES ONLY: The Medicines Company Reports First Quarter 2010 Financial Results

Global Angiomax®/Angiox® (Bivalirudin) Hospital Demand Reaches Record High

Revenue Gains and Cost Reductions Move Company to Profitability for Quarter

PARSIPPANY, NJ--(Marketwire - April 28, 2010) -  The Medicines Company (NASDAQ: MDCO) today announced its financial results for the first quarter of 2010.

Financial highlights:

  • Net revenue increased to $102.1 million from $99.2 million for the same period 2009.
    • Angiomax U.S. sales increased to $95.7 million compared to $95.5 million for the same period 2009.
    • Angiomax/Angiox international net revenue increased to $5.6 million compared to $3.2 million for the same period 2009.
  • Net income was $9.4 million, or $0.18 per share, compared to a net loss of ($3.3 million), or ($0.06) per share for the same period 2009.
  • Non-GAAP net income was $12.5 million, or $0.24 per share, compared to non-GAAP net income of $3.5 million, or $0.07 per share for the same period 2009. Non-GAAP net income excludes the transaction charges related to the first quarter 2009 Targanta acquisition, stock-based compensation expense and non-cash income taxes.

Clive Meanwell, Chairman and Chief Executive Officer, stated, "In the first quarter revenues grew globally with market share gains of the Angiomax/Angiox franchise in the U.S. and major European markets. This growth was particularly evident among the most critically ill hospital patients, specifically those having a heart attack. Additionally, volume increased in lower risk patients, particularly those treated on an outpatient basis."

The following table provides reconciliations between GAAP and non-GAAP net (loss) income for first quarter (Q1) of 2010 and 2009. Non-GAAP net income excludes the transaction charges related to the Targanta acquisition, stock-based compensation expense and non-cash income taxes:

(in millions) Reported GAAP Net Income (Loss)   Targanta Acquisition Costs   FAS 123R Stock-Based Compensation Expense   Non-cash Provision (Benefit) for Income Taxes   Non-GAAP Net Income (Loss) (1)
                             
Q1 2010 $ 9.4   $ -   $ 2.7   $ 0.3   $ 12.5
                             
Q1 2009 $ (3.3)   $ 4.0   $ 5.5   $ (2.6)   $ 3.5
                             
Note: Amounts may not sum due to rounding.
(1) Excluding the Targanta acquisition costs, stock-based compensation expense and the non-cash provision (benefit) for income taxes.

Reconciliations between GAAP and non-GAAP fully diluted (loss) earnings per share (EPS) for the first quarter (Q1) of 2010 and 2009 are provided in the following table:

(per share) Reported GAAP EPS   Targanta Acquisition Costs   FAS 123R Stock-Based Compensation Expense   Non-cash Provision (Benefit) for Income Taxes   Non-GAAP EPS (1)
Q1 2010 $ 0.18   $ -   $ 0.05   $ 0.01   $ 0.24
                             
Q1 2009 $ (0.06)   $ 0.08   $ 0.10   $ (0.05)   $ 0.07
                             
Note: Amounts may not sum due to rounding.
(1) Excluding the Targanta acquisition costs, stock-based compensation expense and the non-cash provision (benefit) for income taxes.

The Company believes that presenting the non-GAAP information contained in the financial tables and in this press release assists investors and others in gaining a better understanding of the Company's core operating results and future prospects, expected growth rates or forecasted guidance, particularly as related to transaction charges associated with the Targanta acquisition, stock-based compensation expense and non-cash income taxes. Management uses this non-GAAP information, in addition to the GAAP information, as the basis for measuring the Company's core operating performance and comparing such performance to that of prior periods and to the performance of its competitors. Such measures are also used by management in its financial and operating decision-making. Non-GAAP information is not meant to be considered superior to or a substitute for the Company's results of operations prepared in accordance with GAAP. A reconciliation of GAAP results with non-GAAP results may also be found in the attached financial tables.

There will be a conference call with management today at 8:30 a.m. Eastern Time to discuss financial results and operational developments. The conference call will be available via phone and webcast. The webcast can be accessed at The Medicines Company website at www.themedicinescompany.com.

The dial in information is listed below:    
Domestic Dial In:   888-396-2384
International Dial In:   617-847-8711
Passcode for both dial in numbers:   37311704

Replay is available from 11:30 a.m. Eastern Time following the conference call through May 12, 2010. To hear a replay of the call dial 888-286-8010 (domestic) and 617-801-6888 (international). Passcode for both dial in numbers is 83209795.

About The Medicines Company
The Medicines Company (NASDAQ: MDCO) is focused on advancing the treatment of critical care patients through the delivery of innovative, cost-effective medicines to the worldwide hospital marketplace. The Company markets Angiomax® (bivalirudin) in the United States and other countries for use in patients undergoing coronary angioplasty, and Cleviprex® (clevidipine butyrate) injectable emulsion in the United States for the reduction of blood pressure when oral therapy is not feasible or not desirable. The Company's website is www.themedicinescompany.com.

Statements contained in this press release about The Medicines Company that are not purely historical, and all other statements that are not purely historical, may be deemed to be forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Without limiting the foregoing, the words "believes," "anticipates" and "expects" and similar expressions, including the Company's preliminary revenue results, are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. Important factors that may cause or contribute to such differences include the extent of the commercial success of Angiomax, the Company's ability to develop its global operations and penetrate foreign markets, whether the Company's products will advance in the clinical trials process on a timely basis or at all, whether the Company will make regulatory submissions for product candidates on a timely basis, whether its regulatory submissions will receive approvals from regulatory agencies on a timely basis or at all, whether physicians, patients and other key decision makers will accept clinical trial results, risks associated with the establishment of international operations, and such other factors as are set forth in the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission including, without limitation, the risk factors detailed in the Company's Annual Report on Form 10-K filed on March 16, 2010, which are incorporated herein by reference. The Company specifically disclaims any obligation to update these forward-looking statements.

The Medicines Company  
Condensed Consolidated Statements of Operations  
(unaudited)  
    Three months ended March 31,  
(in thousands, except per share data)    2010     2009  
         
Net revenue   $ 102,088     $ 99,217  
                 
Operating expenses:                
                 
  Cost of revenue     28,769       28,297  
                   
  Research and development     16,877       24,436  
                   
  Selling, general and administrative     46,121       53,595  
                   
    Total operating expenses     91,767       106,328  
                     
Income (loss) from operations     10,321       (7,111 )
                 
Other (expense) income     (311 )     1,170  
                 
Income (loss) before income taxes     10,010       (5,941 )
                 
(Provision) benefit for income taxes     (578 )     2,593  
                 
Net income (loss)   $ 9,432     $ (3,348 )
                 
Basic earnings (loss) per common share   $ 0.18     $ (0.06 )
                 
Shares used in computing basic earnings (loss) per common share     52,496       52,141  
                 
Diluted earnings (loss) per common share   $ 0.18     $ (0.06 )
                 
Shares used in computing diluted earnings (loss) per common share     52,719       52,141  
                 
                 
                 
The Medicines Company
Condensed Consolidated Balance Sheets
         
    March 31,   December 31,
(in thousands)   2010   2009
ASSETS            
             
Cash, cash equivalents and available for sales securities   $ 184,437   $ 176,191
             
Accrued interest receivable     935     922
             
Accounts receivable, net     29,273     29,789
             
Inventory     24,897     25,836
             
Prepaid expenses and other current assets     8,372     9,984
             
  Total current assets     247,914     242,722
             
Fixed assets, net     23,133     25,072
             
Intangible assets, net     84,240     84,678
             
Restricted cash     7,056     7,049
             
Goodwill     14,671     14,934
             
Other assets     260     321
             
  Total assets   $ 377,274   $ 374,776
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
             
Current liabilities   $ 74,975   $ 86,619
             
  Contingent purchase price     24,390     23,667
               
  Deferred Tax Liability     18,721     18,395
               
  Other Long Term Liabilities     5,740     5,706
               
Stockholders' equity     253,448     240,389
             
  Total liabilities and stockholders' equity   $ 377,274   $ 374,776
             
             
             
             
The Medicines Company            
Reconciliation of GAAP to non-GAAP Measures            
(All amounts in thousands, except per share amounts)            
(Unaudited)            
                     
    Three Months Ended March 31,
    2010          
    GAAP(1)   Targanta Acquisition   SFAS 123R   Non-cash Tax Provision   Non-GAAP (5) As Adjusted
Net revenue   $ 102,088   $ -   $ -   $ -   $ 102,088
                               
Operating expenses:                              
  Cost of revenue     28,769     -     (89) (3)   -     28,680
  Research and development     16,877           (796) (3)   -     16,081
  Selling, general and administrative     46,121     - (2)   (1,858) (3)   -     44,263
    Total operating expenses     91,767     -     (2,743)     -     89,024
                               
Income (loss) from operations     10,321     -     2,743     -     13,064
                               
  Other (loss)/income     (311)     -     -     -     (311)
  Income (loss) before income taxes     10,010     -     2,743     -     12,753
  (Provision) benefit for income taxes     (578)     - (2)   -     326 (4)   (252)
Net income (loss)     9,432     -     2,743     326     12,501
                               
Basic earnings (loss) per common share   $ 0.18   $ -   $ 0.05   $ 0.01   $ 0.24
                               
Shares used in computing basic earnings (loss) per common share     52,496     52,496     52,496     52,496     52,496
                               
Diluted earnings (loss) per common share   $ 0.18   $ -   $ 0.05   $ 0.01   $ 0.24
                               
Shares used in computing diluted earnings (loss) per common share     52,719     52,719     52,719     52,719     52,719
                               
(1) GAAP Results                         
(2) Targanta Acquisition                         
(3) Non-cash stock compensation expense                         
(4) Non-cash income taxes                         
(5) Non-GAAP Results                         
                                   
     
     
     
     
The Medicines Company    
Reconciliation of GAAP to non-GAAP Measures    
(All amounts in thousands, except per share amounts)    
(Unaudited)      
                   
  Three Months Ended March 31,
  2009          
  GAAP(1)   Targanta Acquisition   SFAS 123R   Non-cash Tax Provision   Non-GAAP (5) As Adjusted
Net revenue $ 99,217   $ -   $ -   $ -   $ 99,217
                             
Operating expenses:                            
    Cost of revenue   28,297     -     (221) (3)   -     28,076
    Research and development   24,436       (2)   (986) (3)   -     23,450
    Selling, general and administrative   53,595     (3,995)     (4,254) (3)   -     45,346
      Total operating expenses   106,328     (3,995)     (5,461)     -     96,872
                             
(Loss) income from operations   (7,111)     3,995     5,461     -     2,345
                             
    Other income   1,170     -     -     -     1,170
    (Loss) income before income taxes   (5,941)     3,995     5,461     -     3,515
    Benefit (Provision) for income taxes   2,593     - (2)   -     (2,633) (4)   (40)
Net (loss) income   (3,348)     3,995     5,461     (2,633)     3,475
                             
Basic (loss) earnings per common share $ (0.06)   $ 0.08   $ 0.10   $ (0.05)   $ 0.07
                             
Shares used in computing basic earnings (loss) per common share   52,141     52,141     52,141     52,141     52,141
                             
Diluted (loss) earnings per common share $ (0.06)   $ 0.08   $ 0.10   $ (0.05)   $ 0.07
                             
Shares used in computing diluted (loss) earnings per common share   52,141     52,496     52,496     52,496     52,496
                             
(1) GAAP Results                            
(2) Targanta Acquisition                            
(3) Non-cash stock compensation expense                   
(4) Non-cash income taxes                            
(5) Non-GAAP Results                            
                               

 

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