SOURCE: The Medicines Company

The Medicines Company

April 25, 2012 08:00 ET

The Medicines Company Reports First Quarter 2012 Financial Results

Quarterly Net Revenues Rise 12.9% to $126.6 Million

PARSIPPANY, NJ--(Marketwire - Apr 25, 2012) - The Medicines Company (NASDAQ: MDCO), a global pharmaceutical company focused on advancing the treatment of critical care patients through the delivery of innovative, cost-effective medicines, today announced first quarter financial results for 2012.

Financial highlights for the first quarter of 2012:

  • Net revenue increased by 12.9% to $126.6 million for the first quarter of 2012 from $112.1 million in the first quarter of 2011.

    • Angiomax U.S. sales increased by 10% to $115.5 million in the first quarter of 2012 compared to $105.0 million in the first quarter of 2011.

    • Angiomax/Angiox international net revenue in the first quarter of 2012 increased by 49% to $10.6 million compared with $7.1 million in the first quarter of 2011.

  • Net income for the first quarter of 2012 was $7.6 million, or $0.14 per share, compared with net income of $24.2 million, or $0.45 per share, for the first quarter of 2011. Net income in the first quarter of 2011 included $15 million, net of taxes, from the Company's settlement with the law firm, WilmerHale.

  • Non-GAAP net income for the first quarter of 2012 was $15.2 million, or $0.27 per share, compared to non-GAAP net income of $34.5 million, or $0.64 per share for the first quarter 2011. Non-GAAP net income excludes stock-based compensation expense and non-cash income taxes.

Clive Meanwell, Chairman and Chief Executive Officer, stated, "First quarter 2012 results again indicated that we are on a strong trajectory of growth and are focused on executing our business plan reliably. Sales in all three global regions -- the U.S., Europe, and Asia Pacific -- finished ahead of targets. Our earnings were also ahead of goal."

The following table provides reconciliations between GAAP and non-GAAP net income for the first quarter (Q1) of 2012 and 2011. Non-GAAP net income excludes the transaction charges related to stock-based compensation expense and non-cash income taxes:

(in millions) Reported
GAAP Net
Income
Stock-Based Compensation Expense Non-cash
Provision for
Income
Taxes
Non-GAAP
Net
Income
(1)
Q1 2012 $ 7.6 $ 3.1 $ 4.5 $ 15.2
Q1 2011 $ 24.2 $ 2.3 $ 8.0 $ 34.5
Note: Amounts may not sum due to rounding.
(1) Excluding stock-based compensation expense and the non-cash provision for income taxes

Reconciliations between GAAP and non-GAAP fully diluted earnings per share (EPS) for the first quarter (Q1) of 2012 and 2011 are provided in the following table:

(per share) Reported
GAAP EPS
Stock-Based Compensation Expense Non-cash
Provision for
Income
Taxes
Non-GAAP
EPS
(1)
Q1 2012 $ 0.14 $ 0.06 $ 0.08 $ 0.27
Q1 2011 $ 0.45 $ 0.04 $ 0.15 $ 0.64
Note: Amounts may not sum due to rounding.
(1) Excluding stock-based compensation expense and non-cash provision 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 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 first quarter 2012 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: 800-299-6183
International Dial In: 617-801-9713
Passcode for both dial in numbers: 34052627

Replay is available from 10:30 a.m. Eastern Time following the conference call through May 9, 2012. To hear a replay of the call dial 888-286-8010 (domestic) and 617-801-6888 (international). Passcode for both dial in numbers is 83438358.

About The Medicines Company
The Medicines Company (NASDAQ: MDCO) provides medical solutions to improve health outcomes for patients in acute and intensive care hospitals worldwide. These solutions comprise medicines and knowledge that directly impact the survival and well being of critically ill patients. The Medicines 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, whether the Company is able to obtain or maintain patent protection for the intellectual property relating to the Company's products; 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 February 29, 2012, 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)
(in thousands, except per share data) Three months ended March 31,
2012 2011
Net revenue $ 126,610 $ 112,137
Operating expenses:
Cost of revenue 38,663 35,570
Research and development 32,778 23,792
Selling, general and administrative 43,186 37,928
Total operating expenses 114,627 97,290
Income from operations 11,983 14,847
Legal settlement - 17,984
Other income 62 811
Income before income taxes 12,045 33,642
Provision for income taxes (4,474) (9,401)
Net income $ 7,571 $ 24,241
Basic earnings per common share $ 0.14 $ 0.46
Shares used in computing basic earnings per common share 54,037 53,224
Diluted earnings per common share $ 0.14 $ 0.45
Shares used in computing diluted earnings per common share 55,672 54,109
The Medicines Company
Condensed Consolidated Balance Sheets
March 31, December 31,
(in thousands) 2012 2011
(unaudited)
ASSETS
Cash, cash equivalents and available for sales securities $ 295,655 $ 340,512
Accrued interest receivable 173 374
Accounts receivable, net 67,717 74,559
Inventory 49,973 45,145
Deferred tax assets 9,395 9,395
Prepaid expenses and other current assets 12,209 11,738
Total current assets 435,122 481,723
Fixed assets, net 17,402 17,979
Intangible assets, net 122,967 87,329
Restricted cash 2,687 4,714
Deferred tax assets 78,441 78,441
Goodwill 14,671 14,671
Other assets 7,760 7,790
Total assets $ 679,050 $ 692,647
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 125,280 $ 154,635
Contingent purchase price 20,995 20,431
Other Long Term Liabilities 5,982 5,939
Stockholders' equity 526,793 511,642
Total liabilities and stockholders' equity $ 679,050 $ 692,647
The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended March 31
2012
GAAP(1) Stock-Based Compensation Non-cash
Tax Provision
Non-GAAP(4)
As Adjusted
Net revenue $ 126,610 $ - $ - $ 126,610
Operating expenses:
Cost of revenue 38,663 (35 ) (2) - 38,628
Research and development 32,778 (545 ) (2) - 32,233
Selling, general and administrative 43,186 (2,534 ) (2) - 40,652
Total operating expenses 114,627 (3,114 ) - 111,513
Income from operations 11,983 3,114 - 15,097
Other income 62 - - 62
Income before income taxes 12,045 3,114 - 15,159
(Provision) benefit for income taxes (4,474 ) - 4,474 (3) -
Net income $ 7,571 $ 3,114 $ 4,474 $ 15,159
Basic earnings per common share $ 0.14 $ 0.06 $ 0.08 $ 0.28
Shares used in computing basic earnings per common share 54,037 54,037 54,037 54,037
Diluted earnings per common share $ 0.14 $ 0.06 $ 0.08 $ 0.27
Shares used in computing diluted earnings per common share 55,672 55,672 55,672 55,672
Note: Amounts may not sum due to rounding.
(1) GAAP Results
(2) Non-cash stock compensation expense
(3) Non-cash income taxes
(4) 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,
2011
GAAP(1) Stock-Based Compensation Non-cash
Tax Provision
Non-GAAP(4)
As Adjusted
Net revenue $ 112,137 $ - $ - $ 112,137
Operating expenses:
Cost of revenue 35,570 (43 ) (2) - 35,527
Research and development 23,792 (427 ) (2) - 23,365
Selling, general and administrative 37,928 (1,790 ) (2) - 36,138
Total operating expenses 97,290 (2,260 ) - 95,030
Income from operations 14,847 2,260 - 17,107
Legal settlement 17,984 - - 17,984
Other income 811 - - 811
Income before income taxes 33,642 2,260 - 35,902
(Provision) benefit for income taxes (9,401 ) - 7,991 (3) (1,410 )
Net income $ 24,241 $ 2,260 $ 7,991 $ 34,492
Basic earnings per common share $ 0.46 $ 0.04 $ 0.15 $ 0.65
Shares used in computing basic earnings per common share 53,224 53,224 53,224 53,224
Diluted earnings per common share $ 0.45 $ 0.04 $ 0.15 $ 0.64
Shares used in computing diluted earnings per common share 54,109 54,109 54,109 54,109
(1) GAAP Results
(2) Non-cash stock compensation expense
(3) Non-cash income taxes
(4) Non-GAAP Results

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