The Medicines Company Reports Third Quarter 2010 Financial Results

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

Contact:
Michael Mitchell
The Medicines Company
973-290-6000
investor.relations@themedco.com

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