The Medicines Company Reports Fourth Quarter Revenue Rises 17.2% to $119.7 Million

16 Feb 2011
Full Year EPS Is $1.97 per Share vs Year Ago Loss; Revenues of $437.6 Million vs Year Ago $404.2 Million

PARSIPPANY, NJ, Feb 16, 2011 (MARKETWIRE via COMTEX) --

The Medicines Company (NASDAQ: MDCO) today announced its financial results for the fourth quarter and full year of 2010.

Financial highlights for the fourth quarter of 2010:

--  Net revenue increased by 17.2% to $119.7 million for the fourth
    quarter of 2010 from $102.1 million in the fourth quarter of 2009.
    --  Angiomax U.S. sales increased by 16.3% to $112 million in the
        fourth quarter of 2010 compared to $96.3 million in the fourth
        quarter of 2009.
    --  Angiomax/Angiox international net revenue in the fourth quarter of
        2010 increased by 48% to $7.7 million compared with $5.2 million
        in the fourth quarter of 2009.
--  Net income for the fourth quarter of 2010 was $58.6 million, or $1.09
    per share, compared with a net loss of ($73.5) million, or ($1.40) per
    share, for the fourth quarter of 2009.
    --  Net income impacted by the company's decision to reinstate a
        portion of its deferred tax assets in the amount of $44 million.
--  Non-GAAP net income for the fourth quarter of 2010 was $16.0 million,
    or $0.30 per share, compared to non-GAAP net loss of ($25.6 million),
    or ($0.49) per share for 2009. Non-GAAP net income excludes costs
    associated with the Targanta acquisition, stock-based compensation
    expense and non-cash income taxes.

Financial highlights for the full year of 2010:

--  Net revenue increased by 8.3% to $437.6 million for 2010 from $404.2
    million in 2009.
    --  Angiomax U.S. sales increased by 7.7% to $412.3 million in 2010
        compared with $382.9 million in 2009.
    --  Angiomax/Angiox international net revenue in 2010 increased by
        34.4% with $24.6 million compared with $18.3 million in 2009.
--  Net income for 2010 was $104.6 million, or $1.97 per share, compared
    with a net loss of ($76.2) million, or ($1.46) per share, for 2009.
    --  Net income impacted by the company's decision to reinstate a
        portion of its deferred tax assets in the amount of $44 million.
--  Non-GAAP net income for 2010 was $69.7 million, or $1.31 per share,
    compared to non-GAAP net loss of ($4.8 million), or ($0.09) per share,
    for 2009. Non-GAAP net income excludes costs associated with the
    Targanta acquisition, stock-based compensation expense and non-cash
    income taxes.

Clive Meanwell, Chairman and Chief Executive Officer, stated, "This past quarter and past year our main products, Angiomax and Angiox, grew briskly through relentless innovation with our hospital customers. We believe our late-stage pipeline products progressed through perhaps the most efficient and intelligent R&D efforts in this industry. And throughout it all we created -- and continue to create -- enormous operating leverage to meet our global ambitions."

The following table provides reconciliations between GAAP and non-GAAP net (loss) income for the full year (FY) and fourth quarter (Q4) of 2010 and 2009. Non-GAAP net income excludes the transaction charges related to the Targanta acquisition, stock-based compensation expense and non-cash income taxes:

                                                       Non-cash
                                                      (Benefit)
                                          FAS 123R    Provision
                 Reported    Targanta    Stock-Based     for      Non-GAAP
                 GAAP Net  Acquisition  Compensation    Income   Net Income
(in millions)     Income      Costs        Expense      Taxes        (1)
                 --------  -----------  ------------  ---------  ----------

FY 2010          $  104.6  $         -  $        8.3  $   (43.3) $     69.7

FY 2009          $  (76.2) $       4.3  $       19.4  $    47.7  $     (4.8)

Q4 2010          $   58.6  $         -  $        1.5  $   (44.0) $     16.0

Q4 2009          $  (73.5) $         -  $        4.1  $    43.8  $    (25.6)

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 (loss) earnings per share (EPS) for the FY and Q4 of 2010 and 2009 are provided in the following table:

                                                       Non-cash
                                                      (Benefit)
                                          FAS 123R    Provision
                             Targanta    Stock-Based     for
                 Reported  Acquisition  Compensation    Income    Non-GAAP
(per share)      GAAP EPS     Costs        Expense      Taxes      EPS (1)
                 --------  -----------  ------------  ---------  ----------

FY 2010          $   1.97  $         -  $       0.16  $   (0.81) $     1.31

FY 2009          $  (1.46) $      0.08  $       0.37  $    0.91  $    (0.09)

Q4 2010          $   1.09  $         -  $       0.03  $   (0.82) $     0.30

Q4 2009          $  (1.40) $         -  $       0.08  $    0.84  $    (0.49)

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 full year and fourth quarter 2010 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:                         800.561.2601
International Dial In:                    617.614.3518
Passcode for both dial in numbers:        37185392

Replay is available from 11:30 a.m. Eastern Time following the conference call through March 2, 2011. To hear a replay of the call dial 888-286-8010 (domestic) and 617-801-6888 (international). Passcode for both dial in numbers is 41479697.

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 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 November 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)

(in thousands, except per share data)                Three months ended
                                                        December 31,
                                                ---------------------------
                                                    2010           2009
                                                ------------   ------------

Net revenue                                     $    119,679   $    102,060

Operating expenses:
   Cost of revenue                                    35,394         31,190
   Research and development                           31,113         48,925
   Selling, general and administrative                37,372         46,969
                                                ------------   ------------
      Total operating expenses                       103,879        127,084
                                                ------------   ------------

Income (loss) from operations                         15,800        (25,024)

Other loss                                              (322)        (4,873)
                                                ------------   ------------

Income (loss) before income taxes                     15,478        (29,897)
Benefit (provision) for income taxes                  43,094        (43,597)
                                                ------------   ------------

Net income (loss)                               $     58,572   $    (73,494)
                                                ============   ============

Basic earnings (loss) per common share          $       1.10   $      (1.40)
                                                ============   ============
Shares used in computing basic earnings (loss)
 per common share                                     53,041         52,395
                                                ============   ============

Diluted earnings (loss) per common share        $       1.09   $      (1.40)
                                                ============   ============
Shares used in computing diluted earnings
 (loss) per common share                              53,714         52,395
                                                ============   ============




                           The Medicines Company
              Condensed Consolidated Statements of Operations

                                (unaudited)

(in thousands, except per share data)             Year Ended December 31,
                                                ---------------------------
                                                    2010           2009
                                                ------------   ------------
Net revenue                                     $    437,645   $    404,241
Operating expenses:
   Cost of revenue                                   129,299        118,148
   Research and development                           85,241        117,610
   Selling, general and administrative               158,690        193,832
                                                ------------   ------------
      Total operating expenses                       373,230        429,590
                                                ------------   ------------
Income (loss) from operations                         64,415        (25,349)

Other loss                                              (267)        (2,818)
                                                ------------   ------------
Income (loss) before income taxes                     64,148        (28,167)
Benefit (provision) for income taxes                  40,487        (48,062)
                                                ------------   ------------
Net income (loss)                               $    104,635   $    (76,229)

Basic earnings (loss) per common share          $       1.98   $      (1.46)
                                                ============   ============
Shares used in computing basic earnings (loss)
 per common share                                     52,842         52,269
                                                ============   ============

Diluted earnings (loss) per common share        $       1.97   $      (1.46)
                                                ============   ============
Shares used in computing diluted earnings
 (loss) per common share                              53,184         52,269
                                                ============   ============




                           The Medicines Company
                   Condensed Consolidated Balance Sheets

                                (unaudited)

                                                December 31,   December 31,
(in thousands)                                      2010           2009
                                                ------------   ------------

                     ASSETS
Cash, cash equivalents and available for sales
 securities                                     $    246,644   $    176,191
Accrued interest receivable                            1,279            922
Accounts receivable, net                              46,551         29,789
Inventory                                             25,343         25,836
Prepaid expenses and other current assets              4,804          9,984
                                                ------------   ------------
   Total current assets                              324,621        242,722
                                                ------------   ------------

Fixed assets, net                                     20,662         25,072
Intangible assets, net                                82,925         84,678
Restricted cash                                        5,777          7,049
Deferred tax assets                                   25,197              -

Goodwill                                              14,671         14,934
Other assets                                             270            321
                                                ------------   ------------
   Total assets                                 $    474,124   $    374,776
                                                ============   ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                             $     85,370   $     86,619
Contingent purchase price                             25,387         23,667
Deferred tax liability                                    --         18,395
Other long term liabilities                            5,769          5,706
Stockholders' equity                                 357,598        240,389
                                                ------------   ------------
   Total liabilities and stockholders' equity   $    474,124   $    374,776
                                                ============   ============




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

                                Three Months Ended December 31,
                    -------------------------------------------------------
                                             2010
                    -------------------------------------------------------
                                                                   Non-GAAP
                                                        Non-cash      (5)
                                Targanta    SFAS           Tax        As
                     GAAP(1)  Acquisition   123R        Provision  Adjusted
                    --------  -------------------     ---------------------
Net revenue         $119,679  $      -    $     -     $      -     $119,679

Operating expenses:

Cost of revenue       35,394         -        (33)(3)        -       35,361
Research and
 development          31,113         -       (231)(3)        -       30,882
Selling, general
 and administrative   37,372         -(2)  (1,217)(3)        -       36,155
                    --------  --------    -------     --------     --------
Total operating
 expenses            103,879         -     (1,481)           -      102,398

Income from
 operations           15,800         -      1,481            -       17,281

Other loss              (322)        -          -            -         (322)
                    --------  --------    -------     --------     --------
Income before
 income taxes         15,478         -      1,481            -       16,959
Benefit (provision)
 for income taxes     43,094         -(2)       -      (44,010)(4)     (916)
                    --------  --------    -------     --------     --------
Net income            58,572         -      1,481      (44,010)      16,043

Basic earnings per
 common share       $   1.10  $      -    $  0.03     $  (0.83)    $   0.30
                    ========  ========    =======     ========     ========

Shares used in
 computing basic
 earnings per
 common share         53,041    53,041     53,041       53,041       53,041
                    ========  ========    =======     ========     ========

Diluted earnings
 per common share   $   1.09  $      -    $  0.03     $  (0.82)    $   0.30
                    ========  ========    =======     ========     ========

Shares used in
 computing diluted
 earnings per
 common share         53,714    53,714     53,714       53,714       53,714
                    ========  ========    =======     ========     ========

(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)

                                Twelve Months Ended December 31,
                    -------------------------------------------------------
                                              2010
                    -------------------------------------------------------
                                                                   Non-GAAP
                    GAAP (1)                            Non-cash      (5)
                       As       Targanta    SFAS           Tax        As
                    Reported  Acquisition   123R        Provision  Adjusted
                    --------  -------------------     ---------------------
Net revenue         $437,645  $      -    $     -     $      -     $437,645

Costs and expenses:

Cost of revenue      129,299         -       (250)(3)        -      129,049
Research and
 development          85,241         -     (1,801)(3)        -       83,440
Selling, general
 and administrative  158,690         -(2)  (6,285)(3)        -      152,405
                    --------  --------    -------     --------     --------
Total operating
 expenses            373,230         -     (8,336)           -      364,894

Income from
 operations           64,415         -      8,336            -       72,751

Other loss              (267)        -          -            -         (267)
                    --------  --------    -------     --------     --------
Income before
 income taxes         64,148         -      8,336            -       72,484
Benefit (provision)
 for income taxes     40,487         -(2)       -      (43,300)(4)   (2,813)
                    --------  --------    -------     --------     --------
Net income           104,635         -      8,336      (43,300)      69,671

Basic earnings per
 common share       $   1.98  $      -    $  0.16     $  (0.82)    $   1.32
                    ========  ========    =======     ========     ========

Shares used in
 computing basic
 earnings per
 common share         52,842    52,842     52,842       52,842       52,842
                    ========  ========    =======     ========     ========

Diluted earnings
 per common share   $   1.97  $      -    $  0.16     $  (0.81)    $   1.31
                    ========  ========    =======     ========     ========

Shares used in
 computing diluted
 earnings per
 common share         53,184    53,184     53,184       53,184       53,184
                    ========  ========    =======     ========     ========

(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
[email protected]


SOURCE: The Medicines Company

mailto:[email protected]