10-Q
MEDICINES CO /DE filed this form 10-Q on 15 May 2002
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from the private placement of equity securities, primarily redeemable
convertible preferred stock, and $19.4 million from the issuance of convertible
notes and warrants.

In March 2002, we entered into a collaboration with Nycomed Danmark A/S. Under
the agreement, Nycomed paid us an initial non-refundable fee of $1.5 million and
agreed to pay up to $2.5 million in additional milestones based on regulatory
approval in Europe. In addition, Nycomed purchased 79,428 shares of our common
stock for a total purchase price of approximately $1.0 million.

In March 2002, we entered into a loan and security agreement with Comerica
Bank-California. Under the agreement, we may borrow up to $10.0 million. Amounts
outstanding under the agreement are collateralized by all of the Company's
personal property. The agreement has a term of one year and provides for
interest on amounts outstanding at a rate of one percent above the prime rate.
In order to draw on the facility, and while borrowings are outstanding, we must
satisfy certain covenants, including covenants related to cash, working capital
and revenues. At March 31, 2002, we had drawn down the full $10.0 million under
the agreement. Subsequent to the end of the quarter, we repaid in full the
borrowings under this revolving line of credit.

As of March 31, 2002, we had $55.6 million in cash, cash equivalents and
available for sale securities, as compared to $54.0 million as of December 31,
2001. The increase in cash, cash equivalents and available for sale securities
of $1.6 million was primarily attributable to funds received from the $10.0
million draw down of our revolving line of credit, the $2.5 million received
from Nycomed Danmark A/S, consisting of a non-refundable upfront license fee of
$1.5 million and $1.0 million in proceeds from the sale of shares of our common
stock to Nycomed, and from collections on sales of Angiomax. This increase was
partly offset by operating expenses and working capital requirements during the
three-month period ended March 31, 2002.

We used net cash of $9.7 million in operating activities during the three months
ended March 31, 2002. This consisted of a net loss of $11.6 million, combined
with increases in accounts receivable of $1.3 million and inventory of $2.9
million, which were partly offset by an increase in accounts payable and accrued
expenses of $3.8 million, an increase in deferred revenue of $1.5 million
associated with the Nycomed agreement and from non-cash amortization of deferred
stock compensation of $985,000 and depreciation of $132,000. The increase in
inventory of $2.9 million was primarily attributable to the scheduled receipt of
bulk Angiomax from our supplier, UCB Bioproducts, during the three months ended
March 31, 2002. We do not expect to receive any additional Angiomax bulk
material in the second or third quarters of 2002.

During the three months ended March 31, 2002, we used approximately $6,000 of
cash from net investing activities, which consisted principally of the purchase
of fixed assets. During the three months ended March 31, 2002, we received $11.3
million from financing activities primarily related to the draw down of our
revolving line of credit of $10.0 million, proceeds from the sale of shares of
our common stock to Nycomed of $1.0 million and from employees purchasing stock
under our stock plans.

We expect to devote substantial resources to our research and development
efforts and to our sales, marketing and manufacturing programs associated with
the commercialization of our 


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