FOR U.S. AUDIENCES ONLY: The Medicines Company Reports First Quarter 2010 Financial Results

28 Apr 2010
Global Angiomax(R)/Angiox(R) (Bivalirudin) Hospital Demand Reaches Record High Revenue Gains and Cost Reductions Move Company to Profitability for Quarter

PARSIPPANY, NJ, Apr 28, 2010 (MARKETWIRE via COMTEX) --The Medicines Company (NASDAQ: MDCO) today announced its financial results for the first quarter of 2010.

Financial highlights:

--  Net revenue increased to $102.1 million from $99.2 million for the
    same period 2009.
    --  Angiomax U.S. sales increased to $95.7 million compared to $95.5
        million for the same period 2009.
    --  Angiomax/Angiox international net revenue increased to $5.6
        million compared to $3.2 million for the same period 2009.
--  Net income was $9.4 million, or $0.18 per share, compared to a net
    loss of ($3.3 million), or ($0.06) per share for the same period 2009.
--  Non-GAAP net income was $12.5 million, or $0.24 per share, compared to
    non-GAAP net income of $3.5 million, or $0.07 per share for the same
    period 2009. 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.

Clive Meanwell, Chairman and Chief Executive Officer, stated, "In the first quarter revenues grew globally with market share gains of the Angiomax/Angiox franchise in the U.S. and major European markets. This growth was particularly evident among the most critically ill hospital patients, specifically those having a heart attack. Additionally, volume increased in lower risk patients, particularly those treated on an outpatient basis."

The following table provides reconciliations between GAAP and non-GAAP net (loss) income for first quarter (Q1) 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
                Reported                FAS 123R     Provision
                GAAP Net    Targanta   Stock-Based   (Benefit)    Non-GAAP
                 Income   Acquisition Compensation  for Income   Net Income
(in millions)    (Loss)      Costs       Expense       Taxes     (Loss) (1)
              ----------- ----------- ------------ ------------ -----------

Q1 2010       $9.4        $-          $2.7         $0.3         $12.5

Q1 2009       $(3.3)      $4.0        $5.5         $(2.6)       $3.5

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 first quarter (Q1) 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)
              ----------- ----------- ------------ ------------ -----------
Q1 2010       $0.18       $-          $0.05        $0.01        $0.24

Q1 2009       $(0.06)     $0.08       $0.10        $(0.05)      $0.07

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.

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 velhartice.info.

The dial in information is listed below:
Domestic Dial In:                             888-396-2384
International Dial In:                        617-847-8711
Passcode for both dial in numbers:            37311704

Replay is available from 11:30 a.m. Eastern Time following the conference call through May 12, 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 83209795.

About The Medicines Company The Medicines Company (NASDAQ: MDCO) is focused on advancing the treatment of critical care patients through the delivery of innovative, cost-effective medicines to the worldwide hospital marketplace. The Company markets Angiomax(R) (bivalirudin) in the United States and other countries for use in patients undergoing coronary angioplasty, and Cleviprex(R) (clevidipine butyrate) injectable emulsion in the United States for the reduction of blood pressure when oral therapy is not feasible or not desirable. The 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, 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 March 16, 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 March 31,
                                        -----------------------------------
(in thousands, except per share data)         2010               2009
                                        ----------------   ----------------

Net revenue                             $        102,088   $         99,217

Operating expenses:

  Cost of revenue                                 28,769             28,297

  Research and development                        16,877             24,436

  Selling, general and administrative             46,121             53,595
                                        ----------------   ----------------

    Total operating expenses                      91,767            106,328
                                        ----------------   ----------------

Income (loss) from operations                     10,321             (7,111)

Other (expense) income                              (311)             1,170
                                        ----------------   ----------------

Income (loss) before income taxes                 10,010             (5,941)

(Provision) benefit for income taxes                (578)             2,593
                                        ----------------   ----------------

Net income (loss)                       $          9,432   $         (3,348)
                                        ================   ================

Basic earnings (loss) per common share  $           0.18   $          (0.06)
                                        ================   ================

Shares used in computing basic
 earnings (loss) per common share                 52,496             52,141
                                        ================   ================

Diluted earnings (loss) per common
 share                                  $           0.18   $          (0.06)
                                        ================   ================

Shares used in computing diluted
 earnings (loss) per common share                 52,719             52,141
                                        ================   ================



                            The Medicines Company
                    Condensed Consolidated Balance Sheets

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

Cash, cash equivalents and available
 for sales securities                   $         184,437  $         176,191

Accrued interest receivable                           935                922

Accounts receivable, net                           29,273             29,789

Inventory                                          24,897             25,836

Prepaid expenses and other current
 assets                                             8,372              9,984
                                        -----------------  -----------------

  Total current assets                            247,914            242,722
                                        -----------------  -----------------

Fixed assets, net                                  23,133             25,072

Intangible assets, net                             84,240             84,678

Restricted cash                                     7,056              7,049

Goodwill                                           14,671             14,934

Other assets                                          260                321
                                        -----------------  -----------------

  Total assets                          $         377,274  $         374,776
                                        =================  =================

  LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities                     $          74,975  $          86,619

  Contingent purchase price                        24,390             23,667

  Deferred Tax Liability                           18,721             18,395

  Other Long Term Liabilities                       5,740              5,706

Stockholders' equity                              253,448            240,389
                                        -----------------  -----------------

  Total liabilities and stockholders'
   equity                               $         377,274  $         374,776
                                        =================  =================




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

                                  Three Months Ended March 31,
                     -------------------------------------------------------
                               2010
                     -------------------------------------------------------
                                                         Non-cash   Non-GAAP
                                Targanta                   Tax       (5) As
                      GAAP(1) Acquisition   SFAS 123R   Provision   Adjusted
                     -------- -----------   ---------   ---------   --------
Net revenue          $102,088 $         -   $       -   $       -   $102,088

Operating expenses:
  Cost of revenue      28,769           -        (89)(3)        -     28,680
  Research and
   development         16,877                   (796)(3)        -     16,081
  Selling, general
   and
   administrative      46,121           -(2)  (1,858)(3)        -     44,263
                     -------- -----------   ---------   ---------   --------
   Total operating
    expenses           91,767           -     (2,743)           -     89,024

Income (loss) from
 operations            10,321           -       2,743           -     13,064

  Other
   (loss)/income        (311)           -           -           -      (311)
                     -------- -----------   ---------   ---------   --------
  Income (loss)
   before income
   taxes               10,010           -       2,743           -     12,753
  (Provision)
   benefit for
   income taxes         (578)           -(2)        -         326(4)   (252)
                     -------- -----------   ---------   ---------   --------
Net income (loss)       9,432           -       2,743         326     12,501

Basic earnings
 (loss) per common
 share               $   0.18 $         -   $    0.05   $    0.01   $   0.24
                     ======== ===========   =========   =========   ========

Shares used in
 computing basic
 earnings (loss) per
 common share          52,496      52,496      52,496      52,496     52,496
                     ======== ===========   =========   =========   ========

Diluted earnings
 (loss) per common
 share               $   0.18 $         -   $    0.05   $    0.01   $   0.24
                     ======== ===========   =========   =========   ========

Shares used in
 computing diluted
 earnings (loss) per
 common share          52,719      52,719      52,719      52,719     52,719
                     ======== ===========   =========   =========   ========

(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)

                                  Three Months Ended March 31,
                    --------------------------------------------------------
                              2009
                    --------------------------------------------------------
                                                         Non-cash   Non-GAAP
                                Targanta                   Tax       (5) As
                     GAAP(1)  Acquisition   SFAS 123R   Provision   Adjusted
                    --------- -----------   ---------   ---------   --------
Net revenue         $  99,217 $         -   $       -   $       -   $ 99,217

Operating expenses:
   Cost of revenue     28,297           -       (221)(3)        -     28,076
   Research and
    development        24,436            (2)    (986)(3)        -     23,450
   Selling, general
    and
    administrative     53,595     (3,995)     (4,254)(3)        -     45,346
                    --------- -----------   ---------   ---------   --------
    Total operating
     expenses         106,328     (3,995)     (5,461)           -     96,872

(Loss) income from
 operations           (7,111)       3,995       5,461           -      2,345

   Other income         1,170           -           -           -      1,170
                    --------- -----------   ---------   ---------   --------
   (Loss) income
    before income
    taxes             (5,941)       3,995       5,461           -      3,515
   Benefit
    (Provision) for
    income taxes        2,593           -(2)        -     (2,633)(4)    (40)
                    --------- -----------   ---------   ---------   --------
Net (loss) income     (3,348)       3,995       5,461     (2,633)      3,475

Basic (loss)
 earnings per common
 share              $  (0.06) $      0.08   $    0.10   $  (0.05)   $   0.07
                    ========= ===========   =========   =========   ========

Shares used in
 computing basic
 earnings (loss) per
 common share          52,141      52,141      52,141      52,141     52,141
                    ========= ===========   =========   =========   ========

Diluted (loss)
 earnings per common
 share              $  (0.06) $      0.08   $    0.10   $  (0.05)   $   0.07
                    ========= ===========   =========   =========   ========

Shares used in
 computing diluted
 (loss) earnings per
 common share          52,141      52,496      52,496      52,496     52,496
                    ========= ===========   =========   =========   ========

(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]