PARSIPPANY, NJ--(Marketwire - October 27, 2010) - The Medicines Company (NASDAQ: MDCO) today announced its financial results for the third quarter of 2010.
Financial highlights for the third quarter of 2010:
-- Net revenue increased to $105.7 million for the third quarter from
$98.8 million for the third quarter 2009.
-- Angiomax U.S. sales increased 9% to $100.2 million compared to
$92.2 million for the third quarter 2009.
-- Angiox European sales increased 38% to $4.0 million compared to
$2.9 million for the third quarter 2009.
-- Rest of world Angiomax/Angiox sales decreased 42% to $1.5 million
compared to $2.6 million for the third quarter 2009 on account of
ordering patterns by partners
-- Net income was $21.2 million, or $0.40 per share, compared to net loss
of ($3.2) million, or ($0.06) per share for the third quarter 2009.
-- Non-GAAP net income was $22.8 million, or $0.43 per share, compared to
non-GAAP net income of $5.1 million, or $0.10 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, MD, PhD, Chairman and Chief Executive Officer, stated, "In the third quarter we continued revenue and volume growth compared to 2009 in the U.S. and Europe. All of our development portfolio projects made advances. We continued to pursue tight cost control, resulting in strong earnings for the quarter. We expect to continue to run our business efficiently with an eye to top and bottom line results."
Financial highlights for the first nine months of 2010:
-- Net revenue increased to $318 million for the first nine months of 2010
from $302.2 million for same period 2009.
-- Angiomax U.S. sales increased to $300.3 million compared to $286.6
million for same period 2009.
-- Angiomax/Angiox international net revenue increased to $16.9
million compared to $13.1 million for same period 2009.
-- Net income was $46.1 million, or $0.87 per share, compared to net loss
of ($2.7) million, or ($0.05) per share for same period 2009.
-- Non-GAAP net income was $53.6 million, or $1.02 per share, compared to
non-GAAP net income of $20.9 million, or $0.40 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 third quarter (Q3) and first nine months (9M) of 2010. 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
Reported FAS 123R Provision
GAAP Net Targanta Stock-Based (Benefit) Non-GAAP
Income Acquisition Compensation for Income Net
(in millions) (Loss) Costs Expense Taxes Income(1)
Q3 2010 $ 21.2 $ - $ 1.8 $ (0.2) $ 22.8
Q3 2009 $ (3.2) $ - $ 4.4 $ 3.8 $ 5.1
9M 2010 $ 46.1 $ - $ 6.8 $ 0.7 $ 53.6
9M 2009 $ (2.7) $ 4.3 $ 15.3 $ 4.0 $ 20.9
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 third quarter (Q3) and first nine months (9M) of 2010 and 2009 are provided in the following table:
Non-cash
FAS 123R Provision
Targanta Stock-Based (Benefit)
Reported Acquisition Compensation for Income Non-GAAP
(per share) GAAP EPS Costs Expense Taxes EPS(1)
--------- ------------ ------------ ------------ ----------
Q3 2010 $ 0.40 $ - $ 0.03 $ - $ 0.43
Q3 2009 $ (0.06) $ - $ 0.09 $ 0.07 $ 0.10
9M 2010 $ 0.87 $ - $ 0.13 $ 0.01 $ 1.02
9M 2009 $ (0.05) $ 0.08 $ 0.29 $ 0.08 $ 0.40
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: 866-700-6067
International Dial In: 617-213-8834
Passcode for both dial in numbers: 19125468
Replay is available from 11:30 a.m. Eastern Time following the conference call through November 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 61529947.
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, 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 August 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)
Three months ended
(in thousands, except per share data) September 30,
------------------------
2010 2009
----------- -----------
Net revenue $ 105,743 $ 98,789
Operating expenses:
Cost of revenue 31,568 28,308
Research and development 16,676 22,464
Selling, general and administrative 35,788 47,358
----------- -----------
Total operating expenses 84,032 98,130
----------- -----------
Income from operations 21,711 659
Other income 483 151
----------- -----------
Income before income taxes 22,194 810
Provision for income taxes (989) (4,007)
----------- -----------
Net income (loss) $ 21,205 $ (3,197)
=========== ===========
Basic earnings (loss) per common share $ 0.40 $ (0.06)
=========== ===========
Shares used in computing basic earnings (loss)
per common share 52,991 52,298
=========== ===========
Diluted earnings (loss) per common share $ 0.40 $ (0.06)
=========== ===========
Shares used in computing diluted earnings (loss)
per common share 53,359 52,298
=========== ===========
The Medicines Company
Condensed Consolidated Statements of Operations
(unaudited)
Year to Date
(in thousands, except per share data) September 30,
------------------------
2010 2009
----------- -----------
Net revenue $ 317,966 $ 302,181
Operating expenses:
Cost of revenue 93,905 86,958
Research and development 54,128 68,685
Selling, general and administrative 121,318 146,863
----------- -----------
Total operating expenses 269,351 302,506
----------- -----------
Income (loss) from operations 48,615 (325)
Other income 55 2,055
----------- -----------
Income before income taxes 48,670 1,730
Provision for income taxes (2,607) (4,465)
----------- -----------
Net income (loss) $ 46,063 $ (2,735)
=========== ===========
Basic earnings (loss) per common share $ 0.87 $ (0.05)
=========== ===========
Shares used in computing basic earnings (loss)
per common share 52,773 52,225
=========== ===========
Diluted earnings (loss) per common share $ 0.87 $ (0.05)
=========== ===========
Shares used in computing diluted earnings (loss)
per common share 53,005 52,225
=========== ===========
The Medicines Company
Condensed Consolidated Balance Sheets
September 30, December 31,
(in thousands) 2010 2009
------------ ------------
ASSETS
Cash, cash equivalents and available for sales
securities $ 227,453 $ 176,191
Accrued interest receivable 922 922
Accounts receivable, net 34,070 29,789
Inventory 29,624 25,836
Prepaid expenses and other current assets 7,367 9,984
------------ ------------
Total current assets 299,436 242,722
------------ ------------
Fixed assets, net 21,387 25,072
Intangible assets, net 83,363 84,678
Restricted cash 5,764 7,049
Goodwill 14,671 14,934
Other assets 269 321
------------ ------------
Total assets $ 424,890 $ 374,776
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 77,767 $ 86,619
Contingent purchase price 25,932 23,667
Deferred tax liability 19,105 18,395
Other long term liabilities 5,829 5,706
Stockholders' equity 296,257 240,389
------------ ------------
Total liabilities and stockholders' equity $ 424,890 $ 374,776
============ ============
The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended September 30,
------------------------------------------------------------
2010
------------------------------------------------------------
GAAP(1) Targanta Non-cash Non-GAAP(5)
As Acquisition SFAS Tax As
Reported (2) 123R Provision Adjusted
--------- --------- --------- --------- ---------
Net revenue $ 105,743 $ - $ - $ - $ 105,743
Operating
expenses:
Cost of
revenue 31,568 - (57) (3) - 31,511
Research
and
development 16,676 - (331) (3) - 16,345
Selling,
general
and
administr-
ative 35,788 - (1,387) (3) - 34,401
--------- --------- --------- --------- ---------
Total
operating
expenses 84,032 - (1,775) - 82,257
Income from
operations 21,711 - 1,775 - 23,486
Other
(loss)
income 483 - - - 483
--------- --------- --------- --------- ---------
Income
before
income
taxes 22,194 - 1,775 - 23,969
(Provision)
benefit
for income
taxes (989) - - (148) (4) (1,137)
--------- --------- --------- --------- ---------
Net income 21,205 - 1,775 (148) 22,832
Basic
earnings per
common share $ 0.40 $ - $ 0.03 - $ 0.43
========= ========= ========= ========= =========
Shares used
in computing
basic
earnings per
common share 52,991 52,991 52,991 52,991 52,991
========= ========= ========= ========= =========
Diluted
earnings per
common share $ 0.40 $ - $ 0.03 $ - $ 0.43
========= ========= ========= ========= =========
Shares used
in computing
diluted
earnings per
common share 53,359 53,359 53,359 53,359 53,359
========= ========= ========= ========= =========
(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)
Nine Months Ended September 30,
--------------------------------------------------------
2010
--------------------------------------------------------
Targanta Non-cash Non-GAAP(5)
Acquisition Tax As
GAAP(1) (2) SFAS 123R Provision Adjusted
--------- ------ --------- --------- ---------
Net revenue $ 317,966 $ - $ - $ - $ 317,966
Costs and
expenses:
Cost of
revenue 93,905 - (218) (3) - 93,687
Research and
development 54,128 - (1,569) (3) - 52,559
Selling,
general and
administrative 121,318 - (5,068) (3) - 116,250
--------- ------ --------- --------- ---------
Total
operating
expenses 269,351 - (6,855) - 262,496
Income from
operations 48,615 - 6,855 - 55,470
Other (loss)
income 55 - - - 55
--------- ------ --------- --------- ---------
Income
before income
taxes 48,670 - 6,855 - 55,525
(Provision)
benefit for
income taxes (2,607) - - 710 (4) (1,897)
--------- ------ --------- --------- ---------
Net income 46,063 - 6,855 710 53,628
Basic earnings per
common share $ 0.87 $ - $ 0.13 $ 0.01 $ 1.02
========= ====== ========= ========= =========
Shares used in
computing basic
earnings per
common share 52,773 52,773 52,773 52,773 52,773
========= ====== ========= ========= =========
Diluted earnings
per common
share $ 0.87 $ - $ 0.13 $ 0.01 $ 1.01
========= ====== ========= ========= =========
Shares used in
computing
diluted
earnings per
common share 53,005 53,005 53,005 53,005 53,005
========= ====== ========= ========= =========
(1) GAAP Results
(2) Targanta Acquisition
(3) Non-cash stock compensation expense
(4) Non-cash income taxes
(5) Non-GAAP Results
