SOURCE: The Medicines Company

The Medicines Company

February 20, 2013 08:00 ET

The Medicines Company Reports Fourth Quarter and Full Year 2012 Financial Results

Fourth Quarter Net Revenues Rise 20.6% to $159.5 Million; Full Year Net Revenues Rise 15.2% to $558.6 Million

PARSIPPANY, NJ--(Marketwire - Feb 20, 2013) - The Medicines Company (NASDAQ: MDCO), a global biopharmaceutical company focused on advancing the treatment of critical care patients through the delivery of innovative, cost-effective medicines, today announced fourth quarter and full year financial results for 2012. 

Financial highlights for the fourth quarter of 2012:

  • Net revenue increased by 20.6% to $159.5 million for the fourth quarter of 2012 from $132.2 million in the fourth quarter of 2011.
    • Angiomax U.S. net revenue increased by 13.7% to $141.2 million in the fourth quarter of 2012 compared to $124.2 million in the fourth quarter of 2011.
    • Angiomax/Angiox international net revenue in the fourth quarter of 2012 increased by 77.2% to $14.0 million compared with $7.9 million in the fourth quarter of 2011.
  • Net income for the fourth quarter of 2012 was $20.7 million, or $0.38 per share, compared with net income of $19.6 million, or $0.36 per share, for the fourth quarter of 2011.
  • Non-GAAP net income for the fourth quarter of 2012 was $42.9 million, or $0.78 per share, compared to non-GAAP net income of $28.7 million, or $0.52 per share for the fourth quarter 2011. Non-GAAP net income excludes stock-based compensation expense, non-cash interest expense and non-cash income taxes.

Financial highlights for the full year 2012:

  • Net revenue increased by 15.2% to $558.6 million for 2012 from $484.7 million in 2011.
    • Angiomax U.S. net revenue increased by 10.9% to $501.7 million in 2012 compared with $452.3 million in 2011.
    • Angiomax/Angiox international net revenue in 2012 increased by 47.4% to $46.5 million compared with $31.6 million in 2011.
  • Net income for 2012 was $51.3 million, or $0.93 per share, compared with net income of $127.9 million, or $2.35 per share, for 2011. 
  • Non-GAAP net income for 2012 was $105.6 million, or $1.91 per share, compared with non-GAAP net income of $85.7 million, or $1.57 per share for 2011. Non-GAAP net income excludes stock-based compensation expense, non-cash interest expense and non-cash income taxes.

Glenn Sblendorio, President and Chief Financial Officer, stated, "In 2012, global revenue growth was driven by rapid year on year percentage growth in Europe and continued growth in the United States. Since 2010, we have been realizing the operating leverage we anticipated. Our Phase 3 R&D projects have produced positive results recently and we look forward to the oritavancin Phase 3 SOLO-2 trial completion and preparing for worldwide regulatory filings for cangrelor."

There will be a conference call with management today at 8:30 a.m. Eastern Time to discuss fourth quarter and full year 2012 financial results, operational developments and 2013 financial guidance. The conference call will be available via phone and webcast. The webcast can be accessed at The Medicines Company website at www.themedicinescompany.com. A guidance worksheet will be posted to the front page of The Medicines Company's website.

The dial in information is listed below:
Domestic Dial In: 800 688 0836
International Dial In: 617 614 4072
Passcode for both dial in numbers: 77632519

Replay is available from 10:30 a.m. Eastern Time following the conference call through March 6, 2013. To hear a replay of the call dial 888 286 8010 (domestic) and 617 801 6888 (international). Passcode for both dial in numbers is 15572588.

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 Quarterly Report on Form 10-Q filed on November 9, 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  
   
(in thousands, except per share data)   Three months ended
December 31,
 
    2012     2011  
         
Net revenue   $ 159,490     $ 132,231  
Operating expenses:                
  Cost of revenue     52,228       44,007  
  Research and development     26,147       33,302  
  Selling, general and administrative     44,704       34,916  
    Total operating expenses     123,079       112,225  
                     
Income from operations     36,411       20,006  
  Co-promotion income     3,750       -  
  Interest expense     (3,616 )     -  
  Other income     177       340  
                   
Income before income taxes     36,722       20,346  
Provision for income taxes     (16,141 )     (764 )
                 
Net income     20,581       19,582  
Net loss attributable to non-controlling interest     82       -  
Net income attributable to The Medicines Company   $ 20,663     $ 19,582  
                 
Basic earnings per common share attributable to The Medicines Company   $ 0.39     $ 0.36  
Shares used in computing basic earnings per common share     53,221       53,739  
                 
Diluted earnings per common share attributable to The Medicines Company   $ 0.38     $ 0.36  
Shares used in computing diluted earnings per common share     55,022       54,899  
                 
           
The Medicines Company
Condensed Consolidated Statements of Operations
 
           
(in thousands, except per share data)   Year to Date
December 31,
    2012     2011
Net revenue   $ 558,588     $ 484,732
Operating expenses:              
  Cost of revenue     177,339       156,866
  Research and development     126,423       110,180
  Selling, general and administrative     171,753       159,617
    Total operating expenses     475,515       426,663
               
Income from operations     83,073       58,069
  Legal settlement     -       17,984
  Co-promotion income     10,000       -
  Interest expense     (8,005 )     -
  Other income     1,140       1,790
Income before income taxes     86,208       77,843
(Provision) benefit for income taxes     (35,038 )     50,034
Net income     51,170       127,877
Net loss attributable to non-controlling interest     84       -
Net income attributable to The Medicines Company   $ 51,254     $ 127,877
               
Basic earnings per common share attributable to The Medicines Company   $ 0.96     $ 2.39
Shares used in computing basic earnings per common share     53,545       53,496
               
Diluted earnings per common share attributable to The Medicines Company   $ 0.93     $ 2.35
Shares used in computing diluted earnings per common share     55,346       54,407
               
         
The Medicines Company
Condensed Consolidated Balance Sheets
 
         
    December 31,   December 31,
(in thousands)   2012   2011
             
ASSETS            
Cash, cash equivalents and available for sales securities   $ 570,321   $ 340,512
Accrued interest receivable     348     374
Accounts receivable, net     85,893     74,559
Inventory     76,355     45,145
Deferred tax assets     13,881     9,395
Prepaid expenses and other current assets     9,577     11,738
  Total current assets     756,375     481,723
             
Fixed assets, net     16,100     17,979
Intangible assets, net     119,576     87,329
Restricted cash     1,571     4,714
Deferred tax assets     46,625     78,441
Goodwill     14,671     14,671
Other assets     17,264     7,790
  Total assets   $ 972,182   $ 692,647
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
Current liabilities   $ 135,206   $ 154,635
Contingent purchase price     18,971     20,431
Convertible senior notes (due 2017)     226,109     -
Other Long Term Liabilities     5,674     5,939
Stockholders' equity     586,222     511,642
  Total liabilities and stockholders' equity   $ 972,182   $ 692,647
             
   
The Medicines Company  
Reconciliation of GAAP to non-GAAP Measures  
(unaudited)  
   
    Three months ended
December 31,
  Year to Date
December 31,
 
EARNINGS PER SHARE   2012   2011   2012   2011  
               
GAAP earnings per share - Diluted   $ 0.38   $ 0.36   $ 0.93   $ 2.35  
  Adjustments to net income attributable to The Medicines Company (as detailed below)     0.40     0.17     0.98     (0.78 )
Non-GAAP earnings per share - Diluted   $ 0.78   $ 0.52   $ 1.91   $ 1.57  
                           
                           
An itemized reconciliation between net income attributable to The Medicines Company on a GAAP basis and net income attributable to The Medicines Company on a non-GAAP basis is as follows:  
   
                   
(in thousands)   Three months ended
December 31,
  Year to Date
December 31,
 
    2012   2011   2012   2011  
                           
GAAP net income attributable to The Medicines Company   $ 20,663   $ 19,582   $ 51,254   $ 127,877  
  Adjustments:                          
    Cost of revenue: Stock-based compensation expense     49     27     176     125  
    Research and development: Stock-based compensation expense     539     385     2,265     1,870  
    Selling, general and administrative: Stock-based compensation expense     3,258     2,230     12,537     9,022  
    Non-cash interest expense     2,671     -     5,904     -  
    Non-cash tax provision     15,747     6,507     33,493     (53,236 )
Non-GAAP net income attributable to The Medicines Company   $ 42,927   $ 28,731   $ 105,629   $ 85,658  
                           
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.  
   

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