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The Medicines Company Reports Full Year and Fourth Quarter 2008 Financial Results
PARSIPPANY, NJ, Feb 18, 2009 (MARKET WIRE via COMTEX) -- The Medicines Company (NASDAQ: MDCO) today announced its financial results for the full year and fourth quarter of 2008.

Financial highlights for the full year of 2008:

--  Net revenue increased by 35% to $348.2 million for 2008 from $257.5
    million for 2007.
      - Angiomax(R) (bivalirudin) U.S. net revenue increased by 31% to
        $334.2 million for 2008 from $255.0 million for 2007.
      - Angiomax/Angiox ex-U.S. net revenue in 2008 increased by 444% to
        $13.6 million compared to $2.5 million in 2007.
      - Cleviprex(R) (clevidipine butyrate) net revenue for 2008 was $0.4
        million.  Cleviprex was launched in the U.S. on September 15, 2008.
        Initial gross orders from the sole source distributor totaled $10.0
        million and were recorded as deferred revenue.
--  Net loss for 2008, primarily related to the Curacyte Discovery
    acquisition in the third quarter of 2008, was $8.5 million, or $0.16
    per share, compared to net loss of $18.3 million, or $0.35 per share,
    for 2007 primarily due to the Nycomed transaction in the third quarter
    of 2007.
--  Non-GAAP net income for 2008 was $37.2 million, or $0.72 per share,
    compared to non-GAAP net income of $25.2 million, or $0.49 per share,
    for 2007. Non-GAAP net income excludes the Curacyte Discovery
    acquisition, the non-recurring Nycomed transaction charges, stock-based
    compensation expense and non-cash income taxes.

Clive Meanwell, Chief Executive Officer, stated, "2008 was another important year of building a global organization with a substantial portfolio of hospital critical care products. Strong revenue growth year on year continues to provide cash flow for us to invest in our future and we believe we are poised for further sustainable growth."

Summary of 2008 Accomplishments

--  Angiomax U.S. top-line growth of 31%
--  Angiomax/Angiox ex-U.S. top-line growth of 444%; completed transition
    of distribution of all European countries previously serviced by Nycomed
--  Publication of HORIZONS AMI 30-day results and presentation of one-
    year data follow-up
--  Approval of Angiox ACS indication in Europe
--  Cleviprex approval and launch in the United States
--  Initial ex-US Cleviprex regulatory filings
--  Enrollment of approximately 5,300 patients in cangrelor Phase 3
    program
--  Completed the acquisition of Curacyte Discovery
--  Continued global expansion


John Kelley, President and Chief Operating Officer, stated, "Our operating results in 2008 once again demonstrate the dedication and excellence of our associates as they serve the needs of critical care providers and their patients. We look forward to more progress in 2009 as we continue to build our global organization."

Financial highlights for the fourth quarter of 2008:

--  Net revenue increased by 30% to $93.9 million for the fourth quarter of
    2008 from $72.3 million for the same period in 2007.
      - Angiomax U.S. net revenue increased by 21% to $87.9 million for the
        fourth quarter of 2008 from $72.8 million for the fourth quarter of
        2007.
      - Angiomax/Angiox ex-U.S. net revenue in the fourth quarter of 2008
        increased $6.1 million to $5.6 million compared to ($0.5 million)
        in the fourth quarter 2007.
      - Cleviprex net revenue for the fourth quarter of 2008 was $0.4
        million.
--  Net loss for the fourth quarter of 2008, was $4.2 million, or $0.08 per
    share, compared to net income of $1.5 million, or $0.03 per share for
    the fourth quarter of 2007.
--  Non-GAAP net income for the fourth quarter of 2008 was $1.8 million, or
    $0.03 per share, compared to non-GAAP net income of $5.6 million, or
    $0.11 per share, for the fourth quarter of 2007.  Non-GAAP net income
    excludes stock-based compensation expense and non-cash income taxes.

The following table provides reconciliations between GAAP and non-GAAP net (loss) income for the full year (FY) and fourth quarter (Q4) of 2008 and 2007. Non-GAAP net income excludes the Curacyte Discovery acquisition, non-recurring Nycomed transaction charges, stock-based compensation expense and the non-cash provision (benefit) for income taxes:

                                                       Non-Cash
                                                       Provision
           Reported                         FAS 123R   (Benefit)
           GAAP Net  Curacyte              Stock-Based    for    Non-GAAP
(in         (Loss)   Discovery   Nycomed   Compensation  Income    Net
 millions)  Income  Acquisition Transaction  Expense     Taxes   Income (1)
           --------  ---------- ---------- ---------- ---------- ----------
FY 2008    $   (8.5) $     13.2          - $     22.8 $      9.7 $     37.2
           --------  ---------- ---------- ---------- ---------- ----------
FY 2007    $  (18.3)          - $     28.1 $     15.4          - $     25.2
           --------  ---------- ---------- ---------- ---------- ----------
Q4 2008    $   (4.2)          -          - $      5.4 $      0.6 $      1.8
           --------  ---------- ---------- ---------- ---------- ----------
Q4 2007    $    1.5           -          - $      4.1          - $      5.6
           --------  ---------- ---------- ---------- ---------- ----------
Note: Amounts may not sum due to rounding.
(1) Excluding the Curacyte Discovery acquisition costs, non-recurring
Nycomed transaction charges, 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 full year (FY) and fourth quarter (Q4) of 2008 and 2007 are provided in the following table:

                                                       Non-Cash
                                                       Provision
                                            FAS 123R   (Benefit)
           Reported  Curacyte              Stock-Based    for
            GAAP     Discovery   Nycomed   Compensation  Income   Non-GAAP
(per share)  EPS    Acquisition Transaction  Expense     Taxes      EPS (1)
           --------  ---------- ---------- ---------- ---------- ----------
FY 2008    $  (0.16) $     0.25          - $     0.44 $     0.19 $     0.72
           --------  ---------- ---------- ---------- ---------- ----------
FY 2007    $  (0.35)          - $     0.54 $     0.30          - $     0.49
           --------  ---------- ---------- ---------- ---------- ----------
Q4 2008    $  (0.08)          -          - $     0.10 $     0.01 $     0.03
           --------  ---------- ---------- ---------- ---------- ----------
Q4 2007    $   0.03           -          - $     0.08          - $     0.11
           --------  ---------- ---------- ---------- ---------- ----------
Note: Amounts may not sum due to rounding.
(1) Excluding the Curacyte Discovery acquisition costs, non-recurring
Nycomed transaction charges, 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 the Curacyte Discovery acquisition costs, non-recurring Nycomed transaction charges, 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.

2009 Guidance (in millions, except percentages and per share data)
                                                              Targanta
                                                            Acquisition
                                          2009 Guidance       Impact (2)
                                         ---------------   ---------------
Net Sales
US Angiomax                              $     395-$ 405
International Angiox                     $       30-$ 40
US Cleviprex                             $       10-$ 19
Total                                    $     435-$ 464
Cost of Revenue                                       28%
R&D (GAAP)                               $       79-$ 84   $    15-$ 20 (3)
                                         ---------------   ---------------
   (w/o 123R)                            $       75-$ 80
                                         ---------------   ---------------
SG&A (GAAP)                              $     186-$ 193   $    10-$ 12 (3)
                                         ---------------   ---------------
   (w/o 123R)                            $     170-$ 175
                                         ---------------   ---------------
Stock Based Comp -123R (1)               $       20-$ 22
Investment Income                        $         3-$ 5
Effective Tax Rate                                45%-50%
Net Income (loss) - GAAP                 $       26-$ 31                (4)
                                         ---------------   ---------------
                  - Non GAAP             $       66-$ 78                (4)
                                         ---------------   ---------------
EPS - GAAP                               $   0.47-$ 0.57                (4)
                                         ---------------   ---------------
EPS - Non GAAP                           $   1.22-$ 1.44                (4)
                                         ---------------   ---------------
(1) Note that GAAP reporting of R&D and SG&A include stock based
    compensation expense
(2) Amounts contingent upon Targanta close in first quarter of 2009
    presented on January 13, 2009 MDCO conference call
(3) $10 million to $12 million in infrastructure costs including
    employees, one time transaction costs plus an additional $15 million
    to $20 million costs for a Phase 3 trial for oritavancin
(4) Impact of Targanta acquisition to GAAP and non-GAAP net income and
    earnings per share will be provided subsequent to the close and
    completion of the valuation

There will be a conference call with management today at 8:30 a.m. Eastern Time to discuss full year and fourth quarter 2008 financial results, operational developments, guidance and outlook for 2009. The conference call will be available via phone and webcast. The webcast can be accessed at The Medicines Company website at www.themedicinescompany.com.

The dial in information is listed below:

Domestic dial in:                   800-901-5226
International dial in:              617-786-4513
Passcode for both dial in numbers:  24685928

Replay is available from 11:30 a.m. Eastern Time following the conference call through March 4, 2009. To hear a replay of the call dial 888-286-8010 (domestic) and 617-801-6888 (international). Passcode for both dial in numbers is 28543782.

MDCO-G

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 also has an investigational antiplatelet agent, cangrelor, in late-stage development and a serine protease inhibitor, CU-2010, in early-stage development. The Company's website is www.themedicinescompany.com.

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 our 2009 guidance, 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 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 Quarterly Report on Form 10-Q filed on November 10, 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)
(in thousands, except per share data)           Year to Date December 31,
                                                    2008          2007
Net revenue                                     $    348,157  $    257,534
Operating expenses:
  Cost of revenue                                     88,355        66,502
  Research and development                           105,720        77,255
  Selling, general and administrative                164,903       141,807
                                                ------------  ------------
     Total operating expenses                        358,978       285,564
                                                ------------  ------------
Loss from operations                                 (10,821)      (28,030)
Other income                                           5,235        10,653
                                                ------------  ------------
Loss before income taxes                              (5,586)      (17,377)
Provision for income taxes                            (2,918)         (895)
                                                ------------  ------------
Net loss                                        $     (8,504) $    (18,272)
                                                ============  ============
Basic loss per common share                     $      (0.16) $      (0.35)
                                                ============  ============
Shares used in computing basic loss per common
 share                                                51,904        51,624
                                                ============  ============
Diluted loss per common share                   $      (0.16) $      (0.35)
                                                ============  ============
Shares used in computing diluted loss per
 common share                                         51,904        51,624
                                                ============  ============
                        The Medicines Company
               Consolidated Statements of Operations
                          (unaudited)
                                                    Three Months Ended
(in thousands, except per share data)                 December 31,
                                                    2008          2007
Net revenue                                     $     93,873  $     72,297
Operating expenses:
  Cost of revenue                                     25,234        17,471
  Research and development                            23,202        23,307
  Selling, general and administrative                 47,900        32,350
                                                ------------  ------------
     Total operating expenses                         96,336        73,128
                                                ------------  ------------
Loss from operations                                  (2,463)         (831)
Other (loss) income                                      (22)        2,688
                                                ------------  ------------
(Loss) income before income taxes                     (2,485)        1,857
Provision for income taxes                            (1,713)         (350)
                                                ------------  ------------
Net (loss) income                               $     (4,198) $      1,507
                                                ============  ============
Basic (loss) income per common share            $      (0.08) $       0.03
                                                ============  ============
Shares used in computing basic (loss) income
 per common share                                     52,089        51,706
                                                ============  ============
Diluted (loss) income per common share          $      (0.08) $       0.03
                                                ============  ============
Shares used in computing diluted (loss) income
 per common share                                     52,089        52,182
                                                ============  ============
                         The Medicines Company
                  Condensed Consolidated Balance Sheets
                                (unaudited)
                                                December 31,  December 31,
(in thousands)                                      2008          2007
                                                ------------- -------------
                ASSETS
Cash, cash equivalents and available for sales
 securities                                     $     216,206 $     222,113
Accrued interest receivable                             1,336         1,598
Accounts receivable, net                               33,657        25,584
Inventory                                              28,229        35,468
Prepaid expenses and other current assets              16,402         7,425
                                                ------------- -------------
    Total current assets                              295,830       292,188
                                                ------------- -------------
Fixed assets, net                                      27,331         3,245
Intangible assets, net                                 16,349        14,929
Restricted cash                                         5,000         5,000
Deferred tax assets                                    37,657        46,018
Other assets                                            5,237           136
                                                ------------- -------------
    Total assets                                $     387,404 $     361,516
                                                ============= =============
     LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                             $      89,379 $      83,620
Stockholders' equity                                  298,025       277,896
                                                ------------- -------------
    Total liabilities and stockholders' equity  $     387,404 $     361,516
                                                ============= =============
The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(Amounts in thousands, except per share data)
(Unaudited)
                                  Year to Date December 31,
                     -----------------------------------------------------
                                             2008
                     -----------------------------------------------------
                       GAAP                                      Non-GAAP
                     Reported   Curacyte   SFAS 123R  Non-Cash   Adjusted
                        (1)        (2)        (3)     Taxes (4)     (5)
                     ---------  ---------  ---------  ---------- ---------
Net revenue          $ 348,157  $       -  $       -  $        - $ 348,157
Operating expenses:
   Cost of revenue      88,355          -       (803)          -    87,552
   Research and
    development        105,720    (21,373)    (3,750)          -    80,597
   Selling, general
    and
    administrative     164,903          -    (18,245)          -   146,658
                     ---------  ---------  ---------  ---------- ---------
      Total
       operating
       expenses        358,978    (21,373)   (22,798)          -   314,807
(Loss) income from
 operations            (10,821)    21,373     22,798           -    33,350
   Other income          5,235          -          -           -     5,235
                     ---------  ---------  ---------  ---------- ---------
(Loss) income before
 income taxes           (5,586)    21,373     22,798           -    38,585
   (Provision)
    benefit for
    income taxes        (2,918)    (8,154)         -       9,674    (1,398)
                     ---------  ---------  ---------  ---------- ---------
Net (loss) income       (8,504)    13,219     22,798       9,674    37,187
                     =========  =========  =========  ========== =========
Basic and diluted
 (loss) earnings
 per common share    $   (0.16) $    0.25  $    0.44  $     0.19 $    0.72
                     =========  =========  =========  ========== =========
Shares used in
 computing basic
 and diluted (loss)
 earnings per common
 share                  51,904     51,904     51,904      51,904    51,904
                     =========  =========  =========  ========== =========
    (1) GAAP results
    (2) Curacyte Discovery acquisition costs
    (3) Non-cash stock compensation expense
    (4) Non-cash tax provision
    (5) Non-GAAP results
The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(Amounts in thousands, except per share data)
(Unaudited)
                                Three Months Ended December 31,
                     -----------------------------------------------------
                                             2008
                     -----------------------------------------------------
                       GAAP                                      Non-GAAP
                     Reported    Curacyte  SFAS 123R  Non-Cash   Adjusted
                        (1)        (2)        (3)     Taxes (4)     (5)
                     ---------  ---------- ---------  ---------- ---------
Net revenue          $  93,873  $        - $       -  $        - $  93,873
Operating expenses:
   Cost of revenue      25,234           -      (226)          -    25,008
   Research and
    development         23,202           -      (883)          -    22,319
   Selling, general
    and
    administrative      47,900           -    (4,315)          -    43,585
                     ---------  ---------- ---------  ---------- ---------
      Total
       operating
       expenses         96,336           -    (5,424)          -    90,912
(Loss) income from
 operations             (2,463)          -     5,424           -     2,961
   Other (loss)
    income                 (22)          -         -           -       (22)
                     ---------  ---------- ---------  ---------- ---------
(Loss) income before
 income taxes           (2,485)          -     5,424           -     2,939
   (Provision)
    benefit for
    income taxes        (1,713)          -         -         573    (1,140)
                     ---------  ---------- ---------  ---------- ---------
Net (loss) income       (4,198)          -     5,424         573     1,799
                     =========  ========== =========  ========== =========
Basic and diluted
 (loss) earnings
 per common share    $   (0.08) $        - $    0.10  $     0.01 $    0.03
                     =========  ========== =========  ========== =========
Shares used in
 computing basic
  and diluted (loss)
 earnings per common
 share                  52,089      52,089    52,089      52,089    52,089
                     =========  ========== =========  ========== =========
    (1) GAAP results
    (2) Curacyte Discovery acquisition costs
    (3) Non-cash stock compensation expense
    (4) Non-cash tax provision
    (5) Non-GAAP results

Contact:
Robyn Brown
Vice President, Investor Relations
The Medicines Company
973-290-6000
Email Contact

SOURCE: The Medicines Company

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