The Medicines Company Reports First Quarter 2012 Financial Results

25 Apr 2012
Quarterly Net Revenues Rise 12.9% to $126.6 Million

PARSIPPANY, NJ, Apr 25, 2012 (MARKETWIRE via COMTEX) --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 first quarter financial results for 2012.

Financial highlights for the first quarter of 2012:

--  Net revenue increased by 12.9% to $126.6 million for the first quarter
    of 2012 from $112.1 million in the first quarter of 2011.


    --  Angiomax U.S. sales increased by 10% to $115.5 million in the
        first quarter of 2012 compared to $105.0 million in the first
        quarter of 2011.


    --  Angiomax/Angiox international net revenue in the first quarter of
        2012 increased by 49% to $10.6 million compared with $7.1 million
        in the first quarter of 2011.


--  Net income for the first quarter of 2012 was $7.6 million, or $0.14
    per share, compared with net income of $24.2 million, or $0.45 per
    share, for the first quarter of 2011. Net income in the first quarter
    of 2011 included $15 million, net of taxes, from the Company's
    settlement with the law firm, WilmerHale.


--  Non-GAAP net income for the first quarter of 2012 was $15.2 million,
    or $0.27 per share, compared to non-GAAP net income of $34.5 million,
    or $0.64 per share for the first quarter 2011. Non-GAAP net income
    excludes stock-based compensation expense and non-cash income taxes.


Clive Meanwell, Chairman and Chief Executive Officer, stated, "First quarter 2012 results again indicated that we are on a strong trajectory of growth and are focused on executing our business plan reliably. Sales in all three global regions -- the U.S., Europe, and Asia Pacific -- finished ahead of targets. Our earnings were also ahead of goal."

The following table provides reconciliations between GAAP and non-GAAP net income for the first quarter (Q1) of 2012 and 2011. Non-GAAP net income excludes the transaction charges related to stock-based compensation expense and non-cash income taxes:

                                                    Non-cash
                                                    Provision
                        Reported     Stock-Based       for        Non-GAAP
                        GAAP Net    Compensation     Income          Net
 (in millions)           Income        Expense        Taxes       Income(1)
                      ------------  ------------  ------------  ------------

 Q1 2012              $        7.6  $        3.1  $        4.5  $       15.2

 Q1 2011              $       24.2  $        2.3  $        8.0  $       34.5

 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 earnings per share (EPS) for the first quarter (Q1) of 2012 and 2011 are provided in the following table:

                                                    Non-cash
                                                    Provision
                                     Stock-Based       for
                        Reported    Compensation     Income       Non-GAAP
 (per share)            GAAP EPS       Expense        Taxes        EPS (1)
                      ------------  ------------  ------------  ------------

 Q1 2012              $       0.14  $       0.06  $       0.08  $       0.27

 Q1 2011              $       0.45  $       0.04  $       0.15  $       0.64

 Note: Amounts may not sum due to rounding.
 (1) Excluding stock-based compensation expense and 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 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 first 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 velhartice.info.

The dial in information is listed below: Domestic Dial In: 800-299-6183 International Dial In: 617-801-9713 Passcode for both dial in numbers: 34052627

Replay is available from 10:30 a.m. Eastern Time following the conference call through May 9, 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 83438358.

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 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, 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 Annual Report on Form 10-K filed on February 29, 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 March 31,
                                              ------------------------------
                                                   2012            2011
                                              --------------  --------------

Net revenue                                   $      126,610  $      112,137

Operating expenses:
  Cost of revenue                                     38,663          35,570
  Research and development                            32,778          23,792
  Selling, general and administrative                 43,186          37,928
                                              --------------  --------------
    Total operating expenses                         114,627          97,290
                                              --------------  --------------

Income from operations                                11,983          14,847
  Legal settlement                                         -          17,984
  Other income                                            62             811
                                              --------------  --------------

Income before income taxes                            12,045          33,642
Provision for income taxes                           (4,474)         (9,401)
                                              --------------  --------------

Net income                                    $        7,571  $       24,241
                                              ==============  ==============

Basic earnings per common share               $         0.14  $         0.46
                                              ==============  ==============
Shares used in computing basic earnings per
 common share                                         54,037          53,224
                                              ==============  ==============

Diluted earnings per common share             $         0.14  $         0.45
                                              ==============  ==============
Shares used in computing diluted earnings per
 common share                                         55,672          54,109
                                              ==============  ==============



                            The Medicines Company
                    Condensed Consolidated Balance Sheets

                                                 March 31,     December 31,
(in thousands)                                     2012            2011
                                              --------------  --------------
                                                (unaudited)
                    ASSETS
Cash, cash equivalents and available for
 sales securities                             $      295,655  $      340,512
Accrued interest receivable                              173             374
Accounts receivable, net                              67,717          74,559
Inventory                                             49,973          45,145
Deferred tax assets                                    9,395           9,395
Prepaid expenses and other current assets             12,209          11,738
                                              --------------  --------------
  Total current assets                               435,122         481,723

Fixed assets, net                                     17,402          17,979
Intangible assets, net                               122,967          87,329
Restricted cash                                        2,687           4,714
Deferred tax assets                                   78,441          78,441
Goodwill                                              14,671          14,671
Other assets                                           7,760           7,790
                                              --------------  --------------
  Total assets                                $      679,050  $      692,647
                                              ==============  ==============

     LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                           $      125,280  $      154,635
Contingent purchase price                             20,995          20,431
Other Long Term Liabilities                            5,982           5,939
Stockholders' equity                                 526,793         511,642
                                              --------------  --------------
  Total liabilities and stockholders' equity  $      679,050  $      692,647
                                              ==============  ==============



The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)

                                   Three Months Ended March 31
                      -----------------------------------------------------
                                               2012
                      -----------------------------------------------------
                                                  Non-cash
                                 Stock-Based         Tax        Non-GAAP(4)
                       GAAP(1)  Compensation      Provision     As Adjusted
                      --------  ------------     -----------    -----------
Net revenue           $126,610  $          -     $         -    $   126,610

Operating expenses:
  Cost of revenue       38,663           (35) (2)          -         38,628
  Research and
   development          32,778          (545) (2)          -         32,233
  Selling, general
   and administrative   43,186        (2,534) (2)          -         40,652
                      --------  ------------     -----------    -----------
    Total operating
     expenses          114,627        (3,114)              -        111,513
                      --------  ------------     -----------    -----------

Income from
 operations             11,983         3,114               -         15,097

  Other income              62             -               -             62
                      --------  ------------     -----------    -----------
Income before income
 taxes                  12,045         3,114               -         15,159
  (Provision) benefit
   for income taxes     (4,474)            -           4,474 (3)          -
                      --------  ------------     -----------    -----------
Net income            $  7,571  $      3,114     $     4,474    $    15,159
                      ========  ============     ===========    ===========

Basic earnings per
 common share         $   0.14  $       0.06     $      0.08    $      0.28
                      ========  ============     ===========    ===========

Shares used in
 computing basic
 earnings per common
 share                  54,037        54,037          54,037         54,037
                      ========  ============     ===========    ===========

Diluted earnings per
 common share         $   0.14  $       0.06     $      0.08    $      0.27
                      ========  ============     ===========    ===========

Shares used in
 computing diluted
 earnings per common
 share                  55,672        55,672          55,672         55,672
                      ========  ============     ===========    ===========

Note: Amounts may not sum due to rounding.
(1) GAAP Results
(2) Non-cash stock compensation expense
(3) Non-cash income taxes
(4) Non-GAAP Results



The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)

                                   Three Months Ended March 31,
                      -----------------------------------------------------
                                               2011
                      -----------------------------------------------------
                                                  Non-cash
                                 Stock-Based         Tax        Non-GAAP(4)
                       GAAP(1)  Compensation      Provision     As Adjusted
                      --------  ------------     -----------    -----------
Net revenue           $112,137  $          -     $         -    $   112,137

Operating expenses:
  Cost of revenue       35,570           (43) (2)          -         35,527
  Research and
   development          23,792          (427) (2)          -         23,365
  Selling, general
   and administrative   37,928        (1,790) (2)          -         36,138
                      --------  ------------     -----------    -----------
    Total operating
     expenses           97,290        (2,260)              -         95,030
                      --------  ------------     -----------    -----------

Income from
 operations             14,847         2,260               -         17,107

  Legal settlement      17,984             -               -         17,984
  Other income             811             -               -            811
                      --------  ------------     -----------    -----------
  Income before
   income taxes         33,642         2,260               -         35,902
  (Provision) benefit
   for income taxes     (9,401)            -           7,991 (3)     (1,410)
                      --------  ------------     -----------    -----------
Net income            $ 24,241  $      2,260     $     7,991    $    34,492
                      ========  ============     ===========    ===========

Basic earnings per
 common share         $   0.46  $       0.04     $      0.15    $      0.65
                      ========  ============     ===========    ===========

Shares used in
 computing basic
 earnings per common
 share                  53,224        53,224          53,224         53,224
                      ========  ============     ===========    ===========

Diluted earnings per
 common share         $   0.45  $       0.04     $      0.15    $      0.64
                      ========  ============     ===========    ===========

Shares used in
 computing diluted
 earnings per common
 share                  54,109        54,109          54,109         54,109
                      ========  ============     ===========    ===========

(1) GAAP Results
(2) Non-cash stock compensation expense
(3) Non-cash income taxes
(4) Non-GAAP Results




Contact:
Michael Mitchell
The Medicines Company
973-290-6000
[email protected]


SOURCE: The Medicines Company

mailto:[email protected]