PARSIPPANY, NJ--(Marketwire - July 29, 2009) - The Medicines Company (NASDAQ: MDCO) today announced its financial results for the second quarter of 2009.
Highlights for the second quarter of 2009:
-- Net revenue increased by 20% to $104.2 million for the second quarter
of 2009 from $86.7 million for the second quarter of 2008.
-- Angiomax U.S. sales increased by 17% to $98.8 million in the
second quarter of 2009 compared to $84.5 million in the second
quarter of 2008.
-- Angiomax/Angiox international net revenue in the second quarter
of 2009 increased by 96% to $4.5 million compared to $2.3
million in the second quarter of 2008.
-- Cleviprex has now been accepted by more than 240 hospital
formularies and has been purchased by more than 300 hospitals
in the United States. Net revenue in the second quarter of 2009
was $0.9M, up from $0.5M in the first quarter.
-- Net income for the second quarter of 2009 was $3.8 million, or $0.07
per share, compared to net income of $4.1 million, or $0.08 per share,
for the second quarter of 2008.
-- Non-GAAP net income for the second quarter of 2009 was $12.3 million,
or $0.24 per share, compared to non-GAAP net income of $14.5 million,
or $0.28 per share, for the second quarter of 2008. Non-GAAP net income
excludes the transaction costs associated with the Targanta
acquisition, stock-based compensation expense and non-cash income
taxes.
John Kelley, President and Chief Operating Officer, stated, "The core business, Angiomax and Angiox, is strong and growing. Cleviprex is becoming accepted by more and more hospitals, initial use has been in a wide range of patients, and we continue to view this product as an important and substantial opportunity."
Financial highlights for the first six months of 2009:
-- Net revenue increased by 22% to $203.4 million for the first six months
of 2009 from $166.2 million for the same period in 2008.
-- Angiomax U.S. sales increased by 21% to $194.3 million for the
first six months of 2009 from $161.3 million for the first six
months of 2008.
-- Angiomax/Angiox international net revenue in the first six
months of 2009 increased by 83% to $7.7 million compared to
$4.2 million in the first six months of 2008.
-- Cleviprex net revenue in the first six months of 2009 was
$1.4M.
-- Net income for the first six months of 2009 was $0.5 million, or $0.01
per share, and includes costs for Targanta acquisition, compared to net
income of $8.9 million, or $0.17 per share, in the first six months of
2008.
-- The Company reported non-GAAP net income of $15.5 million, or $0.29 per
share, for the first six months of 2009, compared to non-GAAP net
income of $26.9 million, or $0.51 per share, for the first six months
of 2008. Non-GAAP net income excludes 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 second quarter (Q2) and first six months (6M) of 2009 and 2008. 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 (Benefit)
GAAP Net Targanta Stock-Based Provision
(in (Loss) Transaction Compensation for Income Non-GAAP Net
millions) Income Costs Expense Taxes Income (1)
------------ ------------ ------------ ----------- ------------
Q2 2009 $ 3.8 $ 0.3 $ 5.4 $ 2.8 $ 12.3
------------ ------------ ------------ ----------- ------------
Q2 2008 $ 4.1 - $ 6.9 $ 3.6 $ 14.5
------------ ------------ ------------ ----------- ------------
6M 2009 $ 0.5 $ 4.3 $ 10.9 $ (0.2) $ 15.5
------------ ------------ ------------ ----------- ------------
6M 2008 $ 8.9 - $ 11.4 $ 6.6 $ 26.9
------------ ------------ ------------ ----------- ------------
Note: Amounts may not sum due to rounding.
(1) Excluding the transaction charges related to the Targanta acquisition,
stock-based compensation expense and non-cash income taxes.
Reconciliations between GAAP and non-GAAP fully diluted (loss) earnings per share (EPS) for the second quarter (Q2) and first six months (6M) of 2009 and 2008 are provided in the following table:
Reported FAS 123R Non-Cash
GAAP (Loss) Targanta Stock-Based Provision
Earnings Transaction Compensation for Income Non-GAAP
(per share) Per Share Costs Expense Taxes EPS (1)
------------ ------------ ------------ ----------- ------------
Q2 2009 $ 0.07 $ 0.01 $ 0.10 $ 0.05 $ 0.24
------------ ------------ ------------ ------------ ------------
Q2 2008 $ 0.08 - $ 0.13 $ 0.07 $ 0.28
------------ ------------ ------------ ------------ ------------
6M 2009 $ 0.01 $ 0.08 $ 0.21 - $ 0.29
------------ ------------ ------------ ------------ ------------
6M 2008 $ 0.17 - $ 0.22 $ 0.13 $ 0.51
------------ ------------ ------------ ------------ ------------
Note: Amounts may not sum due to rounding.
(1) Excluding the transaction charges related to the Targanta acquisition,
stock-based compensation expense and non-cash 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 second 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: 800-884-5695 International Dial In: 617-786-2960 Passcode for both dial in numbers: 64853162
Replay is available from 11:30 a.m. Eastern Time following the conference call through August 12, 2009. To hear a replay of the call dial 888-286-8010 (domestic) and 617-801-6888 (international). Passcode for both dial in numbers is 37428278.
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 also has two products in late stage development, cangrelor, an investigational antiplatelet agent and oritavancin, a semi-synthetic lipoglycopeptide antibiotic currently under review by the EU regulatory agency. The Company's pipeline also includes a serine protease inhibitor, CU2010, in early-stage development. 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 our 2009 guidance, 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, our ability to develop our 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 May 11, 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 June 30,
--------------------------
2009 2008
------------ ------------
Net revenue $ 104,175 $ 86,731
Operating expenses:
Cost of revenue 30,353 21,939
Research and development 21,784 19,781
Selling, general and administrative 45,910 38,789
------------ ------------
Total operating expenses 98,047 80,509
------------ ------------
Income (loss) from operations 6,128 6,222
Other income 734 1,805
------------ ------------
Income (loss) before income taxes 6,862 8,027
Benefit (provision) for income taxes (3,051) (3,971)
------------ ------------
Net income (loss) $ 3,811 $ 4,056
============ ============
Basic earnings (loss) per common share $ 0.07 $ 0.08
============ ============
Shares used in computing basic earnings
(loss) per common share 52,232 51,834
============ ============
Diluted earnings (loss) per common share $ 0.07 $ 0.08
============ ============
Shares used in computing diluted earnings
(loss) per common share 52,533 52,441
============ ============
The Medicines Company
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data) Six Months Ended June 30,
--------------------------
2009 2008
------------ ------------
Net revenue $ 203,392 $ 166,159
Operating expenses:
Cost of revenue 58,650 41,032
Research and development 46,221 38,443
Selling, general and administrative 99,504 74,139
------------ ------------
Total operating expenses 204,375 153,614
------------ ------------
Income (loss) from operations (983) 12,545
Other income 1,903 4,186
------------ ------------
Income (loss) before income taxes 920 16,731
Provision for income taxes (458) (7,821)
------------ ------------
Net income (loss) $ 462 $ 8,910
Basic earnings (loss) per common share $ 0.01 $ 0.17
============ ============
Shares used in computing basic earnings
(loss) per common share 52,187 51,792
============ ============
Diluted earnings (loss) per common share $ 0.01 $ 0.17
============ ============
Shares used in computing diluted earnings
(loss) per common share 52,534 52,361
============ ============
The Medicines Company
Condensed Consolidated Balance Sheets
June 30, December 31,
(in thousands) 2009 2008
------------ ------------
ASSETS
Cash, cash equivalents and available
for sales securities $ 185,774 $ 216,206
Accrued interest receivable 932 1,336
Accounts receivable, net 30,590 33,657
Inventory 25,578 28,229
Prepaid expenses and other current assets 17,969 16,402
------------ ------------
Total current assets 260,843 295,830
------------ ------------
Fixed assets, net 27,200 27,331
Intangible assets, net 15,763 16,349
Restricted cash 8,017 5,000
Deferred tax assets 9,624 37,657
In process research & development 68,400 ---
Goodwill 27,135 ---
Other assets 5,337 5,237
------------ ------------
Total assets $ 422,319 $ 387,404
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 84,846 $ 83,608
Contingent purchase price 22,701 ---
Other long term liabilities 5,650 5,771
Stockholders' equity 309,122 298,025
------------ ------------
Total liabilities and stockholders' equity $ 422,319 $ 387,404
============ ============
The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended June 30, 2009
---------------------------------------------------------
Non-cash Non-GAAP
Targanta SFAS Tax (5) As
GAAP(1) Acquisition 123R Provision Adjusted
-------- -------- -------- --------- --------
Net revenue $104,175 $ - $ - $ - $104,175
Operating
expenses:
Cost of
revenue 30,353 - (253)(3) - 30,100
Research and
development 21,784 (953)(3) - 20,831
Selling,
general and
administrative 45,910 (286)(2) (4,240)(3) - 41,384
-------- -------- -------- --------- --------
Total operating
expenses 98,047 (286) (5,445) - 92,316
Income from
operations 6,128 286 5,445 - 11,859
Other income 734 - - - 734
-------- -------- -------- --------- --------
Income before
income taxes 6,882 286 5,445 - 12,593
Benefit
(provision)
for income
taxes (3,051) -(2) - 2,795(4) (256)
-------- -------- -------- --------- --------
Net income 3,811 286 5,445 2,795 12,337
Basic earnings
per common
share $ 0.07 $ 0.01 $ 0.10 $ 0.05 $ 0.24
======== ======== ======== ========= ========
Shares used
in computing
basic earnings
per common
share 52,232 52,232 52,232 52,232 52,232
======== ======== ======== ========= ========
Diluted earnings
per common
share $ 0.07 $ 0.01 $ 0.10 $ 0.05 $ 0.24
======== ======== ======== ========= ========
Shares used
in computing
diluted
earnings per
common share 52,533 52,496 52,496 52,496 52,496
======== ======== ======== ========= ========
(1) GAAP results
(2) Targanta aquisition
(3) Non-cash 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)
Six Months Ended June 30, 2009
---------------------------------------------------------
Non-cash Non-GAAP
Targanta SFAS Tax (5) As
GAAP(1) Acquisition 123R Provision Adjusted
-------- -------- -------- --------- --------
Net revenue $203,392 $ - $ - $ - $203,392
Operating
expenses:
Cost of
revenue 58,650 - (474)(3) - 58,176
Research and
development 46,221 (1,939)(3) - 44,282
Selling,
general and
administrative 99,504 (4,281)(2) (8,494)(3) - 86,730
-------- -------- -------- --------- --------
Total operating
expenses 204,375 (4,281) (10,906) - 189,188
(Loss) income
from operations (983) 4,281 10,906 - 14,204
Other income 1,903 - - - 1,903
-------- -------- -------- --------- --------
Income before
income taxes 920 4,281 10,906 - 16,107
(Provision)
benefit for
income taxes (458) -(2) - (162)(4) (620)
-------- -------- -------- --------- --------
Net income
(loss) 462 4,281 10,906 (162) 15,487
Basic earnings
(loss) per
common share $ 0.01 $ 0.08 $ 0.21 $ (0.00) $ 0.30
======== ======== ======== ========= ========
Shares used
in computing
basic earnings
(loss) per
common share 52,187 52,187 52,187 52,187 52,187
======== ======== ======== ========= ========
Diluted earnings
(loss) per
common share $ 0.01 $ 0.08 $ 0.21 $ (0.00) $ 0.29
======== ======== ======== ========= ========
Shares used
in computing
diluted (loss)
earnings per
common share 52,534 52,534 52,534 52,534 52,534
======== ======== ======== ========= ========
(1) GAAP results
(2) Targanta aquisition
(3) Non-cash compensation expense
(4) Non-cash income taxes
(5) Non-GAAP results
Contact:
Robyn Brown
Vice President, Investor Relations
The Medicines Company
973-290-6000
investor.relations@themedco.com
