PARSIPPANY, NJ--(Marketwire - February 16, 2011) - The Medicines Company (NASDAQ: MDCO) today announced its financial results for the fourth quarter and full year of 2010.
Financial highlights for the fourth quarter of 2010:
- Net revenue increased by 17.2% to $119.7 million for the fourth quarter of 2010 from $102.1 million in the fourth quarter of 2009.
- Angiomax U.S. sales increased by 16.3% to $112 million in the fourth quarter of 2010 compared to $96.3 million in the fourth quarter of 2009.
- Angiomax/Angiox international net revenue in the fourth quarter of 2010 increased by 48% to $7.7 million compared with $5.2 million in the fourth quarter of 2009.
- Net income for the fourth quarter of 2010 was $58.6 million, or $1.09 per share, compared with a net loss of ($73.5) million, or ($1.40) per share, for the fourth quarter of 2009.
- Net income impacted by the company's decision to reinstate a portion of its deferred tax assets in the amount of $44 million.
- Non-GAAP net income for the fourth quarter of 2010 was $16.0 million, or $0.30 per share, compared to non-GAAP net loss of ($25.6 million), or ($0.49) per share for 2009. Non-GAAP net income excludes costs associated with the Targanta acquisition, stock-based compensation expense and non-cash income taxes.
Financial highlights for the full year of 2010:
- Net revenue increased by 8.3% to $437.6 million for 2010 from $404.2 million in 2009.
- Angiomax U.S. sales increased by 7.7% to $412.3 million in 2010 compared with $382.9 million in 2009.
- Angiomax/Angiox international net revenue in 2010 increased by 34.4% with $24.6 million compared with $18.3 million in 2009.
- Net income for 2010 was $104.6 million, or $1.97 per share, compared with a net loss of ($76.2) million, or ($1.46) per share, for 2009.
- Net income impacted by the company's decision to reinstate a portion of its deferred tax assets in the amount of $44 million.
- Non-GAAP net income for 2010 was $69.7 million, or $1.31 per share, compared to non-GAAP net loss of ($4.8 million), or ($0.09) per share, for 2009. Non-GAAP net income excludes costs associated with the Targanta acquisition, stock-based compensation expense and non-cash income taxes.
Clive Meanwell, Chairman and Chief Executive Officer, stated, "This past quarter and past year our main products, Angiomax and Angiox, grew briskly through relentless innovation with our hospital customers. We believe our late-stage pipeline products progressed through perhaps the most efficient and intelligent R&D efforts in this industry. And throughout it all we created -- and continue to create -- enormous operating leverage to meet our global ambitions."
The following table provides reconciliations between GAAP and non-GAAP net (loss) income for the full year (FY) and fourth quarter (Q4) 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
(Benefit)
FAS 123R Provision
Reported Targanta Stock-Based for Non-GAAP
GAAP Net Acquisition Compensation Income Net Income
(in millions) Income Costs Expense Taxes (1)
-------- ----------- ------------ --------- ----------
FY 2010 $ 104.6 $ - $ 8.3 $ (43.3) $ 69.7
FY 2009 $ (76.2) $ 4.3 $ 19.4 $ 47.7 $ (4.8)
Q4 2010 $ 58.6 $ - $ 1.5 $ (44.0) $ 16.0
Q4 2009 $ (73.5) $ - $ 4.1 $ 43.8 $ (25.6)
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 FY and Q4 of 2010 and 2009 are provided in the following table:
Non-cash
(Benefit)
FAS 123R Provision
Targanta Stock-Based for
Reported Acquisition Compensation Income Non-GAAP
(per share) GAAP EPS Costs Expense Taxes EPS (1)
-------- ----------- ------------ --------- ----------
FY 2010 $ 1.97 $ - $ 0.16 $ (0.81) $ 1.31
FY 2009 $ (1.46) $ 0.08 $ 0.37 $ 0.91 $ (0.09)
Q4 2010 $ 1.09 $ - $ 0.03 $ (0.82) $ 0.30
Q4 2009 $ (1.40) $ - $ 0.08 $ 0.84 $ (0.49)
Note: Amounts may not sum due to rounding.
(1) Excluding the Targanta acquisition costs, stock-based compensation
expense and the 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 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 full year and fourth quarter 2010 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: 800.561.2601 International Dial In: 617.614.3518 Passcode for both dial in numbers: 37185392
Replay is available from 11:30 a.m. Eastern Time following the conference call through March 2, 2011. To hear a replay of the call dial 888-286-8010 (domestic) and 617-801-6888 (international). Passcode for both dial in numbers is 41479697.
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 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, 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)
(in thousands, except per share data) Three months ended
December 31,
---------------------------
2010 2009
------------ ------------
Net revenue $ 119,679 $ 102,060
Operating expenses:
Cost of revenue 35,394 31,190
Research and development 31,113 48,925
Selling, general and administrative 37,372 46,969
------------ ------------
Total operating expenses 103,879 127,084
------------ ------------
Income (loss) from operations 15,800 (25,024)
Other loss (322) (4,873)
------------ ------------
Income (loss) before income taxes 15,478 (29,897)
Benefit (provision) for income taxes 43,094 (43,597)
------------ ------------
Net income (loss) $ 58,572 $ (73,494)
============ ============
Basic earnings (loss) per common share $ 1.10 $ (1.40)
============ ============
Shares used in computing basic earnings (loss)
per common share 53,041 52,395
============ ============
Diluted earnings (loss) per common share $ 1.09 $ (1.40)
============ ============
Shares used in computing diluted earnings
(loss) per common share 53,714 52,395
============ ============
The Medicines Company
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data) Year Ended December 31,
---------------------------
2010 2009
------------ ------------
Net revenue $ 437,645 $ 404,241
Operating expenses:
Cost of revenue 129,299 118,148
Research and development 85,241 117,610
Selling, general and administrative 158,690 193,832
------------ ------------
Total operating expenses 373,230 429,590
------------ ------------
Income (loss) from operations 64,415 (25,349)
Other loss (267) (2,818)
------------ ------------
Income (loss) before income taxes 64,148 (28,167)
Benefit (provision) for income taxes 40,487 (48,062)
------------ ------------
Net income (loss) $ 104,635 $ (76,229)
Basic earnings (loss) per common share $ 1.98 $ (1.46)
============ ============
Shares used in computing basic earnings (loss)
per common share 52,842 52,269
============ ============
Diluted earnings (loss) per common share $ 1.97 $ (1.46)
============ ============
Shares used in computing diluted earnings
(loss) per common share 53,184 52,269
============ ============
The Medicines Company
Condensed Consolidated Balance Sheets
(unaudited)
December 31, December 31,
(in thousands) 2010 2009
------------ ------------
ASSETS
Cash, cash equivalents and available for sales
securities $ 246,644 $ 176,191
Accrued interest receivable 1,279 922
Accounts receivable, net 46,551 29,789
Inventory 25,343 25,836
Prepaid expenses and other current assets 4,804 9,984
------------ ------------
Total current assets 324,621 242,722
------------ ------------
Fixed assets, net 20,662 25,072
Intangible assets, net 82,925 84,678
Restricted cash 5,777 7,049
Deferred tax assets 25,197 -
Goodwill 14,671 14,934
Other assets 270 321
------------ ------------
Total assets $ 474,124 $ 374,776
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 85,370 $ 86,619
Contingent purchase price 25,387 23,667
Deferred tax liability -- 18,395
Other long term liabilities 5,769 5,706
Stockholders' equity 357,598 240,389
------------ ------------
Total liabilities and stockholders' equity $ 474,124 $ 374,776
============ ============
The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended December 31,
-------------------------------------------------------
2010
-------------------------------------------------------
Non-GAAP
Non-cash (5)
Targanta SFAS Tax As
GAAP(1) Acquisition 123R Provision Adjusted
-------- ------------------- ---------------------
Net revenue $119,679 $ - $ - $ - $119,679
Operating expenses:
Cost of revenue 35,394 - (33)(3) - 35,361
Research and
development 31,113 - (231)(3) - 30,882
Selling, general
and administrative 37,372 -(2) (1,217)(3) - 36,155
-------- -------- ------- -------- --------
Total operating
expenses 103,879 - (1,481) - 102,398
Income from
operations 15,800 - 1,481 - 17,281
Other loss (322) - - - (322)
-------- -------- ------- -------- --------
Income before
income taxes 15,478 - 1,481 - 16,959
Benefit (provision)
for income taxes 43,094 -(2) - (44,010)(4) (916)
-------- -------- ------- -------- --------
Net income 58,572 - 1,481 (44,010) 16,043
Basic earnings per
common share $ 1.10 $ - $ 0.03 $ (0.83) $ 0.30
======== ======== ======= ======== ========
Shares used in
computing basic
earnings per
common share 53,041 53,041 53,041 53,041 53,041
======== ======== ======= ======== ========
Diluted earnings
per common share $ 1.09 $ - $ 0.03 $ (0.82) $ 0.30
======== ======== ======= ======== ========
Shares used in
computing diluted
earnings per
common share 53,714 53,714 53,714 53,714 53,714
======== ======== ======= ======== ========
(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)
Twelve Months Ended December 31,
-------------------------------------------------------
2010
-------------------------------------------------------
Non-GAAP
GAAP (1) Non-cash (5)
As Targanta SFAS Tax As
Reported Acquisition 123R Provision Adjusted
-------- ------------------- ---------------------
Net revenue $437,645 $ - $ - $ - $437,645
Costs and expenses:
Cost of revenue 129,299 - (250)(3) - 129,049
Research and
development 85,241 - (1,801)(3) - 83,440
Selling, general
and administrative 158,690 -(2) (6,285)(3) - 152,405
-------- -------- ------- -------- --------
Total operating
expenses 373,230 - (8,336) - 364,894
Income from
operations 64,415 - 8,336 - 72,751
Other loss (267) - - - (267)
-------- -------- ------- -------- --------
Income before
income taxes 64,148 - 8,336 - 72,484
Benefit (provision)
for income taxes 40,487 -(2) - (43,300)(4) (2,813)
-------- -------- ------- -------- --------
Net income 104,635 - 8,336 (43,300) 69,671
Basic earnings per
common share $ 1.98 $ - $ 0.16 $ (0.82) $ 1.32
======== ======== ======= ======== ========
Shares used in
computing basic
earnings per
common share 52,842 52,842 52,842 52,842 52,842
======== ======== ======= ======== ========
Diluted earnings
per common share $ 1.97 $ - $ 0.16 $ (0.81) $ 1.31
======== ======== ======= ======== ========
Shares used in
computing diluted
earnings per
common share 53,184 53,184 53,184 53,184 53,184
======== ======== ======= ======== ========
(1) GAAP Results
(2) Targanta Acquisition
(3) Non-cash stock compensation expense
(4) Non-cash income taxes
(5) Non-GAAP Results
