The Medicines Company Reports First Quarter 2008 Financial Results

23 Apr 2008

PARSIPPANY, N.J.--(BUSINESS WIRE)--April 23, 2008--The Medicines Company (NASDAQ: MDCO) today announced its financial results for the first quarter of 2008.

Financial highlights for the first quarter of 2008:
 --     Net revenue increased by 19% to $79.4 million for the first
         quarter of 2008 from $66.6 million for the first quarter of
         2007.

    --      Angiomax(R) (bivalirudin) U.S. sales increased by 16% to
             $76.9 million for the first quarter of 2008 from $66.3
             million for the first quarter of 2007.

    --      Angiomax/Angiox international net revenue in the first
             quarter of 2008 increased $2.2 million to $2.5 million
             compared to $0.3 million in the first quarter of 2007.

 --     Net income for the first quarter of 2008 was $4.9 million, or
         $0.09 per share, compared to net income of $3.0 million, or
         $0.06 per share for the first quarter of 2007.

 --     Excluding stock-based compensation expense and non-cash income
         taxes, the Company reported first quarter non-GAAP net income
         of $12.4 million, or $0.24 per share, compared to non-GAAP
         net income of $8.2 million, or $0.15 per share for the first
         quarter of 2007.

John Kelley, President and Chief Operating Officer, stated, "This was a strong quarter. We are pleased with the top line growth in our base business which we expect to continue. We are also excited about our other platforms for growth including expansion into Europe, near term pipeline opportunities and business development activities."

The following table provides reconciliations between GAAP and non-GAAP net income for the first quarter (Q1) of 2008 and 2007. Non-GAAP net income excludes stock-based compensation expense and the non-cash provision for income taxes:

                                     Non-Cash
              Reported   FAS 123R     Provision
                GAAP    Stock-Based     for
                Net     Compensation   Income    Non-GAAP Net Income
(in millions)  Income     Expense       Taxes            (1)
----------------------------------------------------------------------
Q1 2008         $4.9       $4.6         $3.0            $12.4
----------------------------------------------------------------------
Q1 2007         $3.0       $3.5         $1.6             $8.2
----------------------------------------------------------------------
Note: Amounts may not sum due to rounding.
(1)Excluding stock-based compensation expense and the non-cash
 provision for income taxes

Reconciliations between GAAP and non-GAAP fully diluted EPS for the first quarter (Q1) of 2008 and 2007 are provided in the following table:

                                       Non-Cash
                Reported   FAS 123R     Provision
                  GAAP    Stock-Based     for
                  Net     Compensation   Income   Non-GAAP Net Income
  (per share)    Income     Expense       Taxes           (1)
----------------------------------------------------------------------
Q1 2008          $0.09       $0.09       $0.06           $0.24
----------------------------------------------------------------------
Q1 2007          $0.06       $0.07       $0.03           $0.15
----------------------------------------------------------------------
Note: Amounts may not sum due to rounding.
(1)Excluding 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 stock-based compensation expense and the non-cash provision for 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 AM Eastern Time to discuss first quarter 2008 financial results, operational developments and guidance. The conference call will be available via phone and webcast. The webcast can be accessed at The Medicines Company website at velhartice.info.

    The dial in information is listed below:

    Domestic Dial In: 877-548-7901

    International Dial In: 719-325-4900

Replay is available from 11:30 AM Eastern Time following the conference call through May 7, 2008. To hear a replay of the call dial 888-203-1112 (domestic) and 719-457-0820 (international). Passcode for both dial in numbers is 4364074.

MDCO-F

About The Medicines Company: The Medicines Company (NASDAQ: MDCO) is committed to delivering innovative, cost-effective acute care products in the worldwide hospital marketplace. The Company markets Angiomax(R) / Angiox(R) (bivalirudin) in the United States and other countries for use in patients undergoing coronary angioplasty, a procedure to clear restricted blood flow in arteries around the heart. The Company also has two products in late-stage development, Cleviprex(TM) (clevidipine butyrate) injectable emulsion and cangrelor. The Company's website is http://velhartice.info.

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 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, 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, such as the Company's new drug application regarding Cleviprex and supplemental new drug application for an ACS indication for Angiomax, will receive approvals from regulatory agencies on a timely basis or at all, 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 10-K filed on February 29, 2008, which are incorporated herein by reference. The Company specifically disclaims any obligation to update these forward-looking statements

                        The Medicines Company
                Consolidated Statements of Operations
                             (unaudited)
                                                       Three months
(in thousands, except per share data)                 ended March 31,
                                                     -----------------
                                                       2008     2007
                                                     -----------------

Net revenue                                          $79,427  $66,647

Operating expenses:
   Cost of revenue                                    19,092   17,780
   Research and development                           18,663   19,478
   Selling, general and administrative                35,350   27,138
                                                     -------- --------
        Total operating expenses                      73,105   64,396
                                                     -------- --------

Income from operations                                 6,322    2,251
     Other income                                      2,381    2,583
                                                     -------- --------

Income before income taxes                             8,703    4,834
     Provision for income taxes                       (3,850)  (1,785)
                                                     -------- --------

Net income                                           $ 4,853  $ 3,049
                                                     ======== ========

Basic earnings per common share                      $  0.09  $  0.06
                                                     ======== ========
Shares used in computing basic earnings per common
 share                                                51,749   51,490
                                                     ======== ========

Diluted earnings per common share                    $  0.09  $  0.06
                                                     ======== ========
Shares used in computing diluted earnings per common
 share                                                52,274   52,977
                                                     ======== ========
                        The Medicines Company
                Condensed Consolidated Balance Sheets
                             (unaudited)

                                              March 31,   December 31,
(in thousands)                                   2008         2007
                                             ------------ ------------

                   ASSETS
Cash, cash equivalents and available for
 sales securities                            $    216,287 $    222,113
Accrued interest receivable                         1,286        1,598
Accounts receivable, net                           30,030       25,584
Inventory                                          33,087       35,468
Prepaid expenses and other current assets           9,526        7,425
                                             ------------ ------------
    Total current assets                          290,216      292,188
                                             ------------ ------------

Fixed assets, net                                   3,406        3,245
Intangible assets, net                             14,785       14,929
Restricted cash                                     5,000        5,000
Deferred tax assets                                43,015       46,018
Other assets                                          180          136
                                             ------------ ------------
    Total assets                             $    356,602 $    361,516
                                             ============ ============

    LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                          $     67,497 $     83,620
Stockholders' equity                              289,105      277,896
                                             ------------ ------------
    Total liabilities and stockholders'
     equity                                  $    356,602 $    361,516
                                             ============ ============
The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(Amounts in thousands, except per share data)
(Unaudited)

                                Three Months Ended March 31,
                       -----------------------------------------------
                                            2008
                       -----------------------------------------------
                        GAAP (1)               Non-Cash      Non-GAAP
                           As                     Tax         (4) As
                         Reported  SFAS123R     Provision     Adjusted
                       ---------- ---------   -----------   ----------
Net revenue            $   79,427 $       -   $         -   $   79,427

Operating expenses:
   Cost of revenue         19,092     (137)(2)          -       18,955
   Research and
    development            18,663     (680)(2)          -       17,983
   Selling, general and
    administrative         35,350   (3,745)(2)          -       31,605
                       ---------- ---------   -----------   ----------
      Total operating
       expenses            73,105   (4,562)             -       68,543

Income from operations      6,322     4,562             -       10,884

   Other income             2,381         -             -        2,381
                       ---------- ---------   -----------   ----------
Income before income
 taxes                      8,703     4,562             -       13,265
   Provision for income
    taxes                 (3,850)         -         3,016(3)     (834)
                       ---------- ---------   -----------   ----------
Net income                  4,853     4,562         3,016       12,431

Basic earnings per
 common share          $     0.09 $    0.09   $      0.06   $     0.24
                       ========== =========   ===========   ==========

Shares used in
 computing basic
 earnings per common
 share                     51,749    51,749        51,749       51,749
                       ========== =========   ===========   ==========

Diluted earnings per
 common share          $     0.09 $    0.09   $      0.06   $     0.24
                       ========== =========   ===========   ==========

Shares used in
 computing diluted
 earnings per common
 share                     52,274    52,274        52,274       52,274
                       ========== =========   ===========   ==========

    (1) GAAP Results
    (2) Non-cash stock compensation expense
    (3) Non-cash tax provision
    (4) Non-GAAP Results
    CONTACT: The Medicines Company
             Robyn Brown, 973-656-1616
             Vice President, Investor Relations
             [email protected]

    SOURCE: The Medicines Company