PARSIPPANY, NJ--(Marketwire - February 17, 2010) - The Medicines Company (NASDAQ: MDCO) today announced its financial results for the full year and the fourth quarter of 2009.
Financial highlights for the full year of 2009:
-- Net revenue increased by $56 million or 16.1% to $404.2 million for
2009 from $348.2 million in 2008.
-- Angiomax U.S. sales increased by 14.6% to $382.9 million in 2009
compared to $334.2 million in 2008.
-- Angiomax/Angiox international net revenue in 2009 increased by
34.6% to $18.3 million compared to $13.6 million in 2008.
-- Cleviprex® (clevidipine butyrate) has now been accepted by more
than 425 hospital formularies and has been purchased by 454
hospitals in the United States. Net revenue in the first full
commercial year of 2009 was $3.0 million.
-- Net loss for 2009 was ($76.2) million, or ($1.46) per share, compared
to a net loss of ($8.5) million, or ($0.16) per share, for 2008. This
loss was driven mainly by four items totaling $90.5 million: 1) the
Company's decision to fully reserve against its deferred tax assets
($48.1 million), 2) the acquisition of ApoA-1 Milano asset
($17.5 million), 3) milestone payments, license payments, and other
costs, for three products (totaling $21.3 million), and 4) charges
related to the Cleviprex recall ($3.6 million).
-- Non-GAAP net loss for 2009 was ($4.8 million), or ($0.09) per share,
compared to non-GAAP net income of $37.2 million, or $0.72 per share
for 2008. 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, "In 2009 we added oritavancin, argatroban and ApoA-1 Milano to create a sector-leading portfolio in intensive and critical care that is diversified by stage and indication. These assets were financed by existing cash flow. In addition, we were able to grow Angiomax/Angiox market share and revenues in a hospital PCI market that was significantly depressed by the global economic crisis."
Financial highlights for the fourth quarter of 2009:
-- Net revenue increased by 8.7% to $ 102.1 million for the fourth quarter
of 2009 from $ 93.9 million in the fourth quarter of 2008.
-- Angiomax U.S. sales increased by 9.6% to $96.3 million in the
fourth quarter of 2009 compared to $87.9 million in the fourth
quarter of 2008.
-- Angiomax/Angiox international net revenue in the fourth quarter of
2009 decreased by 7.1% to $5.2 million compared to $5.6 million in
the fourth quarter of 2008.
-- Cleviprex U.S. sales in the fourth quarter of 2009 amounted to
$ 0.6 million.
-- Net loss for the fourth quarter of 2009 was ($73.5) million, or ($1.40)
per share, compared to a net loss of ($4.2) million, or ($0.08) per
share, for the fourth quarter of 2008. This loss was driven mainly by
four items totaling $79.0 million: 1) the Company's decision to fully
reserve against its deferred tax assets ($43.6 million), 2) the
acquisition of ApoA-1 Milano asset ($17.5 million), 3) milestone
payments, license payments, and other costs for three products
(totaling $14.3 million), and 4) charges related to the Cleviprex
recall ($3.6 million).
-- Non-GAAP net loss for the fourth quarter of 2009 was ($25.6 million),
or ($0.49) per share, compared to non-GAAP net income of $ 1.8 million,
or $ 0.03 per share for the fourth quarter of 2008. Non-GAAP net
income excludes costs associated with the Targanta acquisition,
stock-based compensation expense and non-cash income taxes.
The following table provides reconciliations between GAAP and non-GAAP net (loss) income for the full year (FY) and fourth quarter (Q4) of 2009 and 2008. Non-GAAP net income excludes the transaction charges related to the Targanta and Curacyte acquisitions, stock-based compensation expense and non-cash income taxes:
FAS 123R
Stock- Non-cash
Reported Targanta Curacyte Based Provision Non-GAAP
GAAP Net Acqui- Acqui- Compen- (Benefit) Net (Loss)
(Loss) sition sition sation for Income Income
(in millions) Income Costs Costs Expense Taxes (1)
-------- --------- --------- --------- ---------- ---------
FY 2009 ($ 76.2) $ 4.3 - $ 19.4 $ 47.7 ($ 4.8)
FY 2008 ($ 8.5) - $ 13.2 $ 22.8 $ 9.7 $ 37.2
Q4 2009 ($ 73.5) - - $ 4.1 $ 43.8 ($ 25.6)
Q4 2008 ($ 4.2) - - $ 5.4 $ 0.6 $ 1.8
Note: Amounts may not sum due to rounding.
(1) Excluding the Targanta acquisition costs, Curacyte Discovery acquistion 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 full year (FY) and fourth quarter (Q4) of 2009 and 2008 are provided in the following table:
FAS 123R
Stock- Non-Cash
Targenta based Provision
Acquisi- Curacyte Compen- (Benefit) Non-
Reported tion Acquisition sation for Income GAAP
(per share) GAAP EPS Costs Costs Expense Taxes EPS(1)
-------- --------- ----------- -------- ---------- -----
FY 2009 ($ 1.46) $ 0.08 - $ 0.37 $ 0.91 ($0.09)
FY 2008 ($ 0.16) - $ 0.25 $ 0.44 $ 0.19 $0.72
Q4 2009 ($ 1.40) - - $ 0.08 $ 0.84 ($0.49)
Q4 2008 ($ 0.08) - - $ 0.10 $ 0.01 $0.03
Note: Amounts may not sum due to rounding.
(1) Excluding the Targanta acquisition costs, Curacyte Discovery acquistion 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 full year and fourth quarter 2009 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 800.599.9829 International Dial In: 617.847.8703 Passcode for both dial in numbers: 95981334
Replay is available from 11:30 a.m. Eastern Time following the conference call through February 24, 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 99158077.
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 Quarterly Report on Form 10-Q filed on November 9, 2009, 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,
--------------------------------
2009 2008
--------------- ---------------
Net revenue $ 102,060 $ 93,873
Operating expenses:
Cost of revenue 31,190 25,234
Research and development 48,925 23,202
Selling, general and administrative 46,969 47,900
--------------- ---------------
Total operating expenses 127,084 96,336
--------------- ---------------
Income (loss) from operations (25,024) (2,463)
Other income (loss) (4,873) (22)
--------------- ---------------
Income (loss) before income taxes (29,897) (2,485)
Provision for income taxes (43,597) (1,713)
--------------- ---------------
Net income (loss) $ (73,494) $ (4,198)
=============== ===============
Basic earnings (loss) per common share $ (1.40) $ (0.08)
=============== ===============
Shares used in computing basic earnings
(loss) per common share 52,395 52,089
=============== ===============
Diluted earnings (loss) per common share $ (1.40) $ (0.08)
=============== ===============
Shares used in computing diluted earnings
(loss) per common share 52,395 52,089
=============== ===============
The Medicines Company
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data) Year to Date December 31,
--------------------------------
2009 2008
--------------- ---------------
Net revenue $ 404,241 $ 348,157
Operating expenses:
Cost of revenue 118,148 88,355
Research and development 117,610 105,720
Selling, general and administrative 193,832 164,903
--------------- ---------------
Total operating expenses 429,590 358,978
--------------- ---------------
Income (loss) from operations (25,349) (10,821)
Other income (loss) (2,818) 5,235
--------------- ---------------
Income (loss) before income taxes (28,167) (5,586)
Provision for income taxes (48,062) (2,918)
--------------- ---------------
Net income (loss) $ (76,229) $ (8,504)
Basic earnings (loss) per common share $ (1.46) $ (0.16)
=============== ===============
Shares used in computing basic earnings
(loss) per common share 52,269 51,904
=============== ===============
Diluted earnings (loss) per common share $ (1.46) $ (0.16)
=============== ===============
Shares used in computing diluted earnings
(loss) per common share 52,269 51,904
=============== ===============
The Medicines Company
Condensed Consolidated Balance Sheets
December 31, December 31,
(in thousands) 2009 2008
------------ ------------
ASSETS
Cash, cash equivalents and available for sales
securities $ 176,191 $ 216,206
Accrued interest receivable 922 1,336
Accounts receivable, net 29,789 33,657
Inventory 25,836 28,229
Prepaid expenses and other current assets 9,984 16,402
------------ ------------
Total current assets 242,722 295,830
------------ ------------
Fixed assets, net 25,072 27,331
Intangible assets, net 15,178 16,349
Restricted cash 7,049 5,000
Deferred tax assets - 37,657
In Process Research & Development 69,500 -
Goodwill 14,934 -
Other assets 321 5,237
------------ ------------
Total assets $ 374,776 $ 387,404
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 86,619 $ 83,608
Contingent purchase price 23,667 -
Other Long Term Liabilities 24,101 5,771
Stockholders' equity 240,389 298,025
------------ ------------
Total liabilities and stockholders' equity $ 374,776 $ 387,404
============ ============
The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended December 31,
--------------------------------------------------------
2009
--------------------------------------------------------
GAAP(1) Targanta SFAS Non-cash Non-GAAP(5)
Acquisition 123R Tax As Adjusted
Provision
--------- ------------------ ---------------------
Net revenue $ 102,060 $ - $ - $ - $ 102,060
Operating
expenses:
Cost of revenue 31,190 - (187) (3) - 31,003
Research and
development 48,925 (672) (3) - 48,253
Selling, general
and
administrative 46,969 - (2) (3,250) (3) - 43,719
--------- ------- ------ ------- ---------
Total operating
expenses 127,084 - (4,109) - 122,975
(Loss) income
from operations (25,024) - 4,109 - (20,915)
Other
(loss)/income (4,873) - - - (4,873)
--------- ------- ------ ------- ---------
(Loss) income
before income
taxes (29,897) - 4,109 - (25,788)
Benefit
(Provision) for
income taxes (43,597) - (2) - 43,764 (4) 167
--------- ------- ------ ------- ---------
Net (loss) income (73,494) - 4,109 43,764 (25,621)
Basic (loss)
earnings per
common share $ (1.40) $ - $ 0.08 $ 0.84 $ (0.49)
========= ======= ====== ======= =========
Shares used in
computing basic
earnings (loss)
per common share 52,395 52,395 52,395 52,395 52,395
========= ======= ====== ======= =========
Diluted (loss)
earnings per
common share $ (1.40) $ - $ 0.08 $ 0.84 $ (0.49)
========= ======= ====== ======= =========
Shares used in
computing
diluted (loss)
earnings per
common share 52,395 52,395 52,395 52,395 52,395
========= ======= ====== ======= =========
(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,
----------------------------------------------------------
2009
----------------------------------------------------------
GAAP(1) Targanta SFAS Non-cash Non-GAAP(5)
As Acquisition 123R Tax As Adjusted
Reported Provision
------------------------------- ---------------------
Net revenue $ 404,241 $ - $ - $ - $ 404,241
Costs and
expenses:
Cost of revenue 118,148 - (884) (3) - 117,264
Research and
development 117,610 (3,438) (3) - 114,172
Selling,
general and
administrative 193,832 (4,281) (2) (15,115) (3) - 174,436
--------- ------ -------- ------- ---------
Total operating
expenses 429,590 (4,281) (19,437) - 405,872
Income (loss)
from
operations (25,349) 4,281 19,437 - (1,631)
Other
(loss)/income (2,818) - - - (2,818)
--------- ------ -------- ------- ---------
Income before
income taxes (28,167) 4,281 19,437 - (4,449)
(Provision)
benefit for
income taxes (48,062) (2) - 47,736 (4) (326)
--------- ------ -------- ------- ---------
Net income
(loss) (76,229) 4,281 19,437 47,736 (4,775)
Basic (loss)
earnings per
common share $ (1.46) $ 0.08 $ 0.37 $ 0.91 $ (0.09)
========= ====== ======== ======= =========
Shares used in
computing
basic earnings
(loss) per
common share 52,269 52,269 52,269 52,269 52,269
========= ====== ======== ======= =========
Diluted
earnings per
common share $ (1.46) $ 0.08 $ 0.37 $ 0.91 $ (0.09)
========= ====== ======== ======= =========
Shares used in
computing
diluted
earnings
(loss) per
common share 52,269 52,269 52,269 52,269 52,269
========= ====== ======== ======= =========
(1) GAAP Results
(2) Targanta Acquisition
(3) Non-cash stock compensation expense
(4) Non-cash income taxes
(5) Non-GAAP Results
