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:
Non-cash
Reported FAS 123R Provision
GAAP Net Targanta Stock-Based (Benefit) Non-GAAP
Income Acquisition Compensation for Income Net Income
(in millions) (Loss) Costs Expense Taxes (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:
Non-cash
FAS 123R Provision
Targanta Stock-Based (Benefit)
Reported Acquisition Compensation for Income Non-GAAP
(per share) GAAP EPS Costs Expense Taxes 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
-------------------------------------------------------
Non-cash Non-GAAP
Targanta Tax (5) As
GAAP(1) Acquisition SFAS 123R Provision 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
--------------------------------------------------------
Non-cash Non-GAAP
Targanta Tax (5) As
GAAP(1) Acquisition SFAS 123R Provision 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
