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The Medicines Company Reports First Quarter 2011 Earnings per Share of $0.45 vs. $0.18 in 2010
Revenues Rise 9.8% to $112.1 Million vs. Year Ago Period

PARSIPPANY, NJ, Apr 27, 2011 (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 that earnings per share rose to $0.45 in the first quarter of 2011, compared with $0.18 in the first quarter of 2010.

Net revenues in the first quarter of 2011 were $112.1 million versus $102.1 million in the comparable 2010 period.

"2011 first quarter results represent further proof that the Company's business model is built to deliver performance and real growth," said Clive Meanwell, Chairman and Chief Executive Officer. "Our market-leading product Angiomax and Angiox performed as expected. Late-stage pipeline products again showed meaningful progress. Cangrelor and oritavancin Phase 3 trials are each ahead of enrollment schedule. Our global operating leverage drove strong cash flow throughout the period."

Financial highlights for the first quarter of 2011:

--  Net revenue increased by 9.8% to $112.1 million for the first quarter
    of 2011 from $102.1 million in the first quarter of 2010.
        - Angiomax U.S. sales increased by 9.7% to $105.0 million in the
          first quarter of 2011 compared to $95.7 million in the first
          quarter of 2010.
        - Angiomax/Angiox international net revenue in the first quarter of
          2011 increased by 26.9% to $7.1 million compared with $5.6
          million in the first quarter of 2010.
--  Net income for the first quarter of 2011 was $24.2 million, or $0.45
    per share, compared with net income of $9.4 million, or $0.18 per
    share, for the first quarter of 2010.
--  Non-GAAP net income for the first quarter of 2011 was $34.5 million, or
    $0.64 per share, compared to non-GAAP net income of $12.5 million, or
    $0.24 per share for the first quarter 2010. 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 income for first quarter (Q1) of 2011 and 2010. Non-GAAP net income excludes stock-based compensation expense and non-cash income taxes:

                                    ASC 718
                                  Stock-Based     Non-cash
                    Reported GAAP Compensation  Provision for Non-GAAP Net
(in millions)        Net Income     Expense     Income Taxes    Income(1)
                    ------------- ------------- ------------- -------------
Q1 2011             $        24.2 $         2.3 $         8.0 $        34.5
Q1 2010             $         9.4 $         2.7 $         0.3 $        12.5
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 2011 and 2010 are provided in the following table:

                                    ASC 718
                                  Stock-Based     Non-cash
                    Reported GAAP Compensation  Provision for Non-GAAP EPS
(per share)             EPS         Expense     Income Taxes      (1)
                    ------------- ------------- ------------- -------------
Q1 2011             $        0.45 $        0.04 $        0.15 $        0.64
Q1 2010             $        0.18 $        0.05 $        0.01 $        0.24
Note: Amounts may not sum due to rounding.
(1) Excluding 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, 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 www.themedicinescompany.com.

The dial in information is listed below:

Domestic Dial In:                  800-659-2037
International Dial In:             617-614-2713
Passcode for both dial in numbers: 46998178

Replay is available from 11:30 a.m. Eastern Time following the conference call through May 11, 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 13510765.

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 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 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 15, 2011, 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
(in thousands, except per share data)                        March 31
                                                        ------------------
                                                          2011      2010
                                                        --------  --------
Net revenue                                             $112,137  $102,088
Operating expenses:
  Cost of revenue                                         35,570    28,769
  Research and development                                23,792    16,877
  Selling, general and administrative                     37,928    46,121
                                                        --------  --------
    Total operating expenses                              97,290    91,767
                                                        --------  --------
Income from operations                                    14,847    10,321
  Legal settlement                                        17,984         -
  Other income (loss)                                        811      (311)
                                                        --------  --------
Income before income taxes                                33,642    10,010
Provision for income taxes                                (9,401)     (578)
                                                        --------  --------
Net income                                              $ 24,241  $  9,432
                                                        ========  ========
Basic earnings per common share                         $   0.46  $   0.18
                                                        ========  ========
Shares used in computing basic earnings per common
 share                                                    53,224    52,496
                                                        ========  ========
Diluted earnings per common share                       $   0.45  $   0.18
                                                        ========  ========
Shares used in computing diluted earnings per common
 share                                                    54,109    52,719
                                                        ========  ========
                          The Medicines Company
                  Condensed Consolidated Balance Sheets
                                                  March 31,   December 31,
(in thousands)                                       2011         2010
                                                  ----------- -------------
                                                  (unaudited)
                     ASSETS
Cash, cash equivalents and available for sales
 securities                                       $   265,772 $     246,644
Accrued interest receivable                               707         1,279
Accounts receivable, net                               49,089        46,551
Inventory                                              32,365        25,343
Prepaid expenses and other current assets              15,168         4,804
                                                  ----------- -------------
    Total current assets                              363,101       324,621
                                                  ----------- -------------
Fixed assets, net                                      20,073        20,662
Intangible assets, net                                 82,332        82,925
Restricted cash                                         5,784         5,778
Deferred tax assets                                    24,985        25,197
Goodwill                                               14,671        14,671
Other assets                                              276           270
                                                  ----------- -------------
    Total assets                                  $   511,222 $     474,124
                                                  =========== =============
       LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                               $    92,855 $      85,370
  Contingent purchase price                            26,650        25,387
  Other long term liabilities                           5,811         5,769
Stockholders' equity                                  385,906       357,598
                                                  ----------- -------------
    Total liabilities and stockholders' equity    $   511,222 $     474,124
                                                  =========== =============
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       Non-GAAP
                                Stock-Based          Tax          (4) As
                      GAAP(1)   Compensation      Provision      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 for)
   Benefit from
   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
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
                                Stock-Based          Tax           (4) As
                      GAAP(1)   Compensation      Provision       Adjusted
                     ---------  ------------      ----------     ---------
Net  revenue         $ 102,088  $          -      $        -     $ 102,088
Operating expenses:
  Cost of revenue       28,769           (89) (2)          -        28,680
  Research and
   development          16,877          (796) (2)          -        16,081
  Selling, general
   and administrative   46,121        (1,858) (2)          -        44,263
                     ---------  ------------      ----------     ---------
    Total operating
     expenses           91,767        (2,743)              -        89,024
Income from
 operations             10,321         2,743               -        13,064
  Other loss              (311)            -               -          (311)
                     ---------  ------------      ----------     ---------
  Income before
   income taxes         10,010         2,743               -        12,753
  (Provision for)
   benefit for
   income taxes           (578)            -             326 (3)      (252)
                     ---------  ------------      ----------     ---------
Net income               9,432         2,743             326        12,501
Basic earnings per
 common share        $    0.18  $       0.05      $     0.01     $    0.24
                     =========  ============      ==========     =========
Shares used in
 computing basic
 earnings per common
 share                  52,496        52,496          52,496        52,496
                     =========  ============      ==========     =========
Diluted earnings per
 common share        $    0.18  $       0.05      $     0.01     $    0.24
                     =========  ============      ==========     =========
Shares used in
 computing diluted
 earnings per common
 share                  52,719        52,719          52,719        52,719
                     =========  ============      ==========     =========
(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
investor.relations@themedco.com


SOURCE: The Medicines Company

mailto:investor.relations@themedco.com