PARSIPPANY, NJ--(Marketwire - July 28, 2010) - The Medicines Company (NASDAQ: MDCO) today announced its financial results for the second quarter of 2010.
Financial highlights for the second quarter of 2010:
-- Net revenue increased to $110.1 million for the second quarter from
$104.2 million for the second quarter 2009.
-- Angiomax U.S. sales increased to $104.4 million compared to $98.8
million for the second quarter 2009.
-- Angiomax/Angiox international net revenue increased to $5.8 million
compared to $4.5 million for the second quarter 2009.
-- Net income was $15.4 million, or $0.29 per share, compared to net
income of $3.8 million, or $0.07 per share for the second quarter 2009.
-- Non-GAAP net income was $18.3 million, or $0.35 per share, compared to
non-GAAP net income of $12.3 million, or $0.24 per share for the same
period 2009. Non-GAAP net income excludes the transaction charges
related to the 2009 Targanta acquisition, stock-based compensation
expense and non-cash income taxes.
Clive Meanwell, Chairman and Chief Executive Officer, stated, "In the second quarter revenues reached record levels globally with market share gains of the Angiomax/Angiox franchise in the U.S. and major European markets. We also made progress with our development portfolio of three Phase 3 and two earlier stage compounds. In addition, we continue to tighten expenditures with the result that our net income was robust and we improved our cash position substantially."
Financial highlights for the first six months of 2010:
-- Net revenue increased to $212.2 million for the first six months of
2010 from $203.4 million for same period 2009.
-- Angiomax U.S. sales increased to $200.8 million compared to $195.7
million for same period 2009.
-- Angiomax/Angiox international net revenue increased to $11.4
million compared to $7.7 million for same period 2009.
-- Net income was $24.9 million, or $0.47 per share, compared to net
income of $0.5 million, or $0.01 per share for same period 2009.
-- Non-GAAP net income was $30.8 million, or $0.58 per share, compared to
non-GAAP net income of $15.5 million, or $0.29 per share for the same
period 2009. Non-GAAP net income excludes the transaction charges
related to the 2009 Targanta acquisition, stock-based compensation
expense and non-cash income taxes.
The following table provides reconciliations between GAAP and non-GAAP net income (loss) for second quarter (Q2) and first six months (6M) of 2010 and 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:
Non-cash
FAS 123R Provision
Reported Targanta Stock-Based (Benefit)
(in GAAP Net Acquisition Compensation for Income Non-GAAP Net
millions) Income Costs Expense Taxes Income(1)
------------ ------------ ------------ ----------- ------------
Q2 2010 $ 15.4 $ - $ 2.3 $ 0.5 $ 18.3
Q2 2009 $ 3.8 $ 0.3 $ 5.4 $ 2.8 $ 12.3
6M 2010 $ 24.9 $ - $ 5.1 $ 0.9 $ 30.8
6M 2009 $ 0.5 $ 4.3 $ 10.9 $ (0.2) $ 15.5
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 earnings per share (EPS) for the second quarter (Q2) and first six months (6M) of 2010 and 2009 are provided in the following table:
Non-cash
FAS 123R Provision
Targanta Stock-Based (Benefit)
(per Reported Acquisition Compensation for Income Non-GAAP
share) GAAP EPS Costs Expense Taxes EPS(1)
------------ ------------ ------------ ------------ ------------
Q2 2010 $ 0.29 $ - $ 0.04 $ 0.01 $ 0.35
Q2 2009 $ 0.07 $ 0.01 $ 0.10 $ 0.05 $ 0.24
6M 2010 $ 0.47 $ - $ 0.10 $ 0.02 $ 0.58
6M 2009 $ 0.01 $ 0.08 $ 0.21 $ - $ 0.29
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 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: 866-362-5158
International Dial In: 617-597-5397
Passcode for both dial in numbers: 83135911
Replay is available from 11:30 a.m. Eastern Time following the conference call through August 11, 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 37130585.
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 May 10, 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 June 30,
----------------------------
2010 2009
------------- -------------
Net revenue $ 110,135 $ 104,175
Operating expenses:
Cost of revenue 33,568 30,353
Research and development 20,575 21,784
Selling, general and administrative 39,409 45,910
------------- -------------
Total operating expenses 93,552 98,047
------------- -------------
Income from operations 16,583 6,128
Other (expense) income (117) 734
------------- -------------
Income before income taxes 16,466 6,862
Provision for income taxes (1,040) (3,051)
------------- -------------
Net income $ 15,426 $ 3,811
============= =============
Basic earnings per common share $ 0.29 $ 0.07
============= =============
Shares used in computing basic earnings per
common share 52,819 52,232
============= =============
Diluted earnings per common share $ 0.29 $ 0.07
============= =============
Shares used in computing diluted earnings
per common share 52,924 52,532
============= =============
The Medicines Company
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data) Six months ended June 30,
----------------------------
2010 2009
------------- -------------
Net revenue $ 212,223 $ 203,392
Operating expenses:
Cost of revenue 62,337 58,650
Research and development 37,452 46,221
Selling, general and administrative 85,530 99,504
------------- -------------
Total operating expenses 185,319 204,375
------------- -------------
Income (loss) from operations 26,904 (983)
Other (expense) income (428) 1,903
------------- -------------
Income before income taxes 26,476 920
Provision for income taxes (1,618) (458)
------------- -------------
Net income $ 24,858 $ 462
============= =============
Basic earnings per common share $ 0.47 $ 0.01
============= =============
Shares used in computing basic earnings per
common share 52,658 52,187
============= =============
Diluted earnings per common share $ 0.47 $ 0.01
============= =============
Shares used in computing diluted earnings
per common share 52,823 52,534
============= =============
The Medicines Company
Condensed Consolidated Balance Sheets
June 30, December 31,
(in thousands) 2010 2009
------------ ------------
ASSETS
Cash, cash equivalents and available for sales
securities $ 218,803 $ 176,191
Accrued interest receivable 1,256 922
Accounts receivable, net 20,719 29,789
Inventory 28,423 25,836
Prepaid expenses and other current assets 6,029 9,984
------------ ------------
Total current assets 275,230 242,722
------------ ------------
Fixed assets, net 22,166 25,072
Intangible assets, net 83,802 84,678
Restricted cash 7,049 7,049
Goodwill 14,671 14,934
Other assets 257 321
------------ ------------
Total assets $ 403,175 $ 374,776
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 80,130 $ 86,619
Contingent purchase price 25,145 23,667
Deferred tax liability 19,252 18,395
Other long term liabilities 5,784 5,706
Stockholders' equity 272,864 240,389
------------ ------------
Total liabilities and stockholders' equity $ 403,175 $ 374,776
============ ============
The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended June 30,
-------------------------------------------------------------
2010
-------------------------------------------------------------
Targanta Non-cash Non-GAAP(5)
Acquisition Tax As
GAAP(1) (2) SFAS 123R Provision Adjusted
--------- --------- --------- ---------- ---------
Net revenue $ 110,135 $ - $ - $ - $ 110,135
Operating
expenses:
Cost of
revenue 33,568 - (72) (3) - 33,496
Research
and
development 20,575 - (442) (3) - 20,133
Selling,
general
and
administ-
rative 39,409 - (1,823) (3) - 37,586
--------- --------- --------- ---------- ---------
Total
operating
expenses 93,552 - (2,337) - 91,215
Income from
operations 16,583 - 2,337 - 18,920
Other
(loss)
income (117) - - - (117)
--------- --------- --------- ---------- ---------
Income
before
income
taxes 16,466 - 2,337 - 18,803
(Provision)
benefit
for
income
taxes (1,040) - - 531 (4) (509)
--------- --------- --------- ---------- ---------
Net income 15,426 - 2,337 531 18,294
Basic
earnings
per common
share $ 0.29 $ - $ 0.04 $ 0.01 $ 0.35
========= ========= ========= ========== =========
Shares used
in
computing
basic
earnings
per common
share 52,819 52,819 52,819 52,819 52,819
========= ========= ========= ========== =========
Diluted
earnings
per common
share $ 0.29 $ - $ 0.04 $ 0.01 $ 0.35
========= ========= ========= ========== =========
Shares used
in
computing
diluted
earnings
per common
share 52,924 52,924 52,924 52,924 52,924
========= ========= ========= ========== =========
(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)
Six Months Ended June 30,
-------------------------------------------------------------
2010
-------------------------------------------------------------
Targanta Non-cash Non-GAAP(5)
Acquisition Tax As
GAAP(1) (2) SFAS 123R Provision Adjusted
--------- --------- --------- ---------- ---------
Net revenue $ 212,223 $ - $ - $ - $ 212,223
Costs and
expenses:
Cost of
revenue 62,337 - (161) (3) - 62,176
Research
and
development 37,452 - (1,238) (3) - 36,214
Selling,
general
and
administ-
rative 85,530 - (3,681) (3) - 81,849
--------- --------- --------- ---------- ---------
Total
operating
expenses 185,319 - (5,080) - 180,239
Income from
operations 26,904 - 5,080 - 31,984
Other
(loss)
income (428) - - - (428)
--------- --------- --------- ---------- ---------
Income
before
income
taxes 26,476 - 5,080 - 31,556
(Provision)
benefit
for
income
taxes (1,618) - - 857 (4) (761)
--------- --------- --------- ---------- ---------
Net income 24,858 - 5,080 857 30,795
Basic
earnings
per common
share $ 0.47 $ - $ 0.10 $ 0.02 $ 0.58
========= ========== ========= ========== =========
Shares used
in
computing
basic
earnings
per common
share 52,658 52,658 52,658 52,658 52,658
========= ========== ========= ========== =========
Diluted
earnings
per common
share $ 0.47 $ - $ 0.10 $ 0.02 $ 0.58
========= ========== ========= ========== =========
Shares used
in
computing
diluted
earnings
per common
share 52,823 52,823 52,823 52,823 52,823
========= ========== ========= ========== =========
(1) GAAP Results
(2) Targanta Acquisition
(3) Non-cash stock compensation expense
(4) Non-cash income taxes
(5) Non-GAAP Results
