PARSIPPANY, NJ--(Marketwire - July 25, 2012) - The Medicines Company (NASDAQ: MDCO), a global pharmaceutical company focused on advancing the treatment of critical care patients through the delivery of innovative, cost-effective medicines, today announced second quarter and first half financial results for 2012.
Financial highlights for the second quarter of 2012:
- Net revenue increased by 13.5% to $135.7 million for the second quarter of 2012 from $119.6 million in the second quarter of 2011.
- Angiomax U.S. sales increased by 8.2% to $121.2 million in the second quarter of 2012 compared to $112.0 million in the second quarter of 2011.
- Angiomax/Angiox international net revenue in the second quarter of 2012 increased by 63.6% to $11.9 million compared with $7.3 million in the second quarter of 2011.
- Net income for the second quarter of 2012 was $13.8 million, or $0.25 per share, compared with net income of $11.4 million, or $0.21 per share, for the second quarter of 2011.
- Non-GAAP net income for the second quarter of 2012 was $25.7 million, or $0.46 per share, compared to non-GAAP net income of $13.2 million, or $0.24 per share for the second quarter 2011. Non-GAAP net income excludes stock-based compensation expense, non-cash interest expense and non-cash income taxes.
Financial highlights for the first half of 2012:
- Net revenue increased by 13.2% to $262.3 million for the first half of 2012 from $231.7 million in the first half of 2011.
- Angiomax U.S. sales increased by 9.1% to $236.7 million in the first half of 2012 compared with $217.0 million in the first half of 2011.
- Angiomax/Angiox international net revenue in the first half of 2012 increased by 56.2% to $22.6 million compared with $14.4 million in the first half of 2011.
- Net income for the first half of 2012 was $21.3 million, or $0.38 per share, compared with net income of $35.7 million, or $0.66 per share, for the first half of 2011.
- Non-GAAP net income for the first half of 2012 was $40.9 million, or $0.74 per share, compared with non-GAAP net income of $47.7 million, or $0.88 per share for the first half of 2011. Non-GAAP net income excludes stock-based compensation expense, non-cash interest expense and non-cash income taxes.
Glenn Sblendorio, President and Chief Financial Officer, stated, "For the first half of 2012, revenue growth has been robust with Europe a particular bright spot -- while we have kept worldwide SG&A costs stable. Since 2010, we have been realizing the operating leverage we anticipated. Our R&D projects are moving forward aggressively to drive toward answers on our critical Phase 3 trials of oritavancin and cangrelor."
The following table provides reconciliations between GAAP and non-GAAP net income for the second quarter (Q2) and first half (1H) of 2012 and 2011. Non-GAAP net income excludes the transaction charges related to stock-based compensation expense, non-cash interest expense and non-cash income taxes:
Non-cash
Provision
Reported Stock-Based Non-cash (Benefit)
GAAP Net Compensation Interest for Income Non-GAAP Net
(millions) Income Expense Expense Taxes Income (1)
------------ ------------ ------------ ------------ ------------
Q2 2012 $ 13.8 $ 4.2 $ 0.6 $ 7.2 $ 25.7
Q2 2011 $ 11.4 $ 3.2 $ - $ (1.4) $ 13.2
1H 2012 $ 21.3 $ 7.3 $ 0.6 $ 11.7 $ 40.9
1H 2011 $ 35.7 $ 5.4 $ - $ 6.6 $ 47.7
Note: Amounts may not sum due to
rounding.
(1)Excluding stock-based
compensation expense, non-cash
interest expense and the non-cash
provision (benefit) for income
taxes
Reconciliations between GAAP and non-GAAP fully diluted earnings per share (EPS) for Q2 and 1H of 2012 and 2011 are provided in the following table:
Non-cash
Provision
Stock-Based Non-cash (Benefit)
(per Reported Compensation Interest for Income Non-GAAP EPS
share) GAAP EPS Expense Expense Taxes (1)
------------ ------------ ------------ ------------ ------------
Q2 2012 $ 0.25 $ 0.08 $ 0.01 $ 0.13 $ 0.46
Q2 2011 $ 0.21 $ 0.06 $ - $ (0.03) $ 0.24
1H 2012 $ 0.38 $ 0.13 $ 0.01 $ 0.21 $ 0.74
1H 2011 $ 0.66 $ 0.10 $ - $ 0.12 $ 0.88
Note: Amounts may not sum due to
rounding.
(1)Excluding stock-based
compensation expense, non-cash
interest 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 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 2012 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: 800-659-2032
International Dial In: 617-614-2712
Passcode for both dial in numbers: 69019146
Replay is available from 10:30 a.m. Eastern Time following the conference call through August 8, 2012. To hear a replay of the call dial 888-286-8010 (domestic) and 617-801-6888 (international). Passcode for both dial in numbers is 72155180.
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 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, 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 May 10, 2012, 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,
----------------------------
2012 2011
------------- -------------
Net revenue $ 135,702 $ 119,591
Operating expenses:
Cost of revenue 42,681 37,830
Research and development 32,962 26,536
Selling, general and administrative 40,467 41,420
------------- -------------
Total operating expenses 116,110 105,786
------------- -------------
Income from operations 19,592 13,805
Co-promotion income 2,500 -
Interest expense (784) -
Other income 697 61
------------- -------------
Income before income taxes 22,005 13,866
Provision for income taxes (8,251) (2,426)
------------- -------------
Net income 13,754 11,440
Net loss attributable to non-controlling
interest 1 -
------------- -------------
Net income attributable to The Medicines
Company $ 13,755 $ 11,440
============= =============
Basic earnings per common share attributable
to The Medicines Company $ 0.25 $ 0.21
============= =============
Shares used in computing basic earnings per
common share 54,035 53,441
============= =============
Diluted earnings per common share attributable
to The Medicines Company $ 0.25 $ 0.21
============= =============
Shares used in computing diluted earnings per
common share 55,556 54,314
============= =============
The Medicines Company
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data) Year to Date June 30,
------------------------
2012 2011
----------- -----------
Net revenue $ 262,312 $ 231,728
Operating expenses:
Cost of revenue 81,344 73,400
Research and development 65,740 50,328
Selling, general and administrative 83,653 79,348
----------- -----------
Total operating expenses 230,737 203,076
----------- -----------
Income from operations 31,575 28,652
Legal settlement - 17,984
Co-promotion income 2,500 -
Interest expense (784) -
Other income 759 872
----------- -----------
Income before income taxes 34,050 47,508
Provision for income taxes (12,725) (11,827)
----------- -----------
Net income 21,325 35,681
Net loss attributable to non-controlling interest 1 -
----------- -----------
Net income attributable to The Medicines Company $ 21,326 $ 35,681
=========== ===========
Basic earnings per common share attributable to
The Medicines Company $ 0.39 $ 0.67
=========== ===========
Shares used in computing basic earnings per common
share 54,036 53,343
=========== ===========
Diluted earnings per common share attributable to
The Medicines Company $ 0.38 $ 0.66
=========== ===========
Shares used in computing diluted earnings per
common share 55,614 54,223
=========== ===========
The Medicines Company
Condensed Consolidated Balance Sheets
June 30, December 31,
(in thousands) 2012 2011
------------- -------------
(unaudited)
ASSETS
Cash, cash equivalents and available for sales
securities $ 517,485 $ 340,512
Accrued interest receivable 300 374
Accounts receivable, net 65,664 74,559
Inventory 47,202 45,145
Deferred tax assets 9,395 9,395
Prepaid expenses and other current assets 12,406 11,738
------------- -------------
Total current assets 652,452 481,723
Fixed assets, net 16,916 17,979
Intangible assets, net 121,835 87,329
Restricted cash 2,697 4,714
Deferred tax assets 74,547 78,441
Goodwill 14,671 14,671
Other assets 7,766 7,790
------------- -------------
Total assets $ 890,884 $ 692,647
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 116,365 $ 154,635
Contingent purchase price 21,568 20,431
Convertible senior notes (due 2017) 221,322 -
Other Long Term Liabilities 6,028 5,939
Stockholders' equity 525,601 511,642
------------- -------------
Total liabilities and stockholders' equity $ 890,884 $ 692,647
============= =============
The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended June 30
---------------------------------------------------------
2012
---------------------------------------------------------
Non-
Non-cash Non-cash GAAP(5)
Stock-Based Interest Tax As
GAAP(1) Compensation Expense Provision Adjusted
-------- ------------ -------- --------- --------
Net revenue $135,702 $ - $ - $ - $135,702
Operating
expenses:
Cost of revenue 42,681 (38)(2) - - 42,643
Research and
development 32,962 (480)(2) - - 32,482
Selling,
general and
administrative 40,467 (3,663)(2) - - 36,804
-------- ------------ -------- --------- --------
Total
operating
expenses 116,110 (4,181) - - 111,929
-------- ------------ -------- --------- --------
Income loss from
operations 19,592 4,181 - - 23,773
Co-promotion
income 2,500 - - - 2,500
Interest
expense (784) - 577(3) - (207)
Other income 697 - - - 697
-------- ------------ -------- --------- --------
Income before
income taxes 22,005 4,181 577 - 26,763
(Provision)
benefit for
income taxes (8,251) - - 7,232(4) (1,019)
-------- ------------ -------- --------- --------
Net income 13,754 4,181 577 7,232 25,744
Net loss
attributable to
non-controlling
interest 1 - - - 1
-------- ------------ -------- --------- --------
Net income
attributable to
The Medicines
Company $ 13,755 $ 4,181 $ 577 $ 7,232 $ 25,745
======== ============ ======== ========= ========
Basic earnings
per common share
attributable to
The Medicines
Company $ 0.25 $ 0.08 $ 0.01 $ 0.13 $ 0.48
======== ============ ======== ========= ========
Shares used in
computing basic
earnings per
common share 54,035 54,035 54,035 54,035 54,035
======== ============ ======== ========= ========
Diluted earnings
per common share
attributable to
The Medicines
Company $ 0.25 $ 0.08 $ 0.01 $ 0.13 $ 0.46
======== ============ ======== ========= ========
Shares used in
computing
diluted earnings
per common share 55,556 55,556 55,556 55,556 55,556
======== ============ ======== ========= ========
Note: Amounts may not sum
due to rounding.
(1) GAAP Results
(2) Non-cash stock compensation expense
(3) Non-cash interest 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
---------------------------------------------------------
2012
---------------------------------------------------------
Non-
Non-cash Non-cash GAAP(5)
Stock-Based Interest Tax As
GAAP(1) Compensation Expense Provision Adjusted
-------- ------------ -------- --------- --------
Net revenue $262,312 $ - $ - $ - $262,312
Operating
expenses:
Cost of revenue 81,344 (73)(2) - - 81,271
Research and
development 65,740 (1,026)(2) - - 64,714
Selling,
general and
administrative 83,653 (6,196)(2) - - 77,457
-------- ------------ -------- --------- --------
Total
operating
expenses 230,737 (7,295) - - 223,442
-------- ------------ -------- --------- --------
Income from
operations 31,575 7,295 - - 38,870
Co-promotion
income 2,500 - - - 2,500
Interest
expense (784) - 577(3) - (207)
Other income 759 - - - 759
-------- ------------ -------- --------- --------
Income before
income taxes 34,050 7,295 577 - 41,922
(Provision)
benefit for
income taxes (12,725) - - 11,706(4) (1,019)
