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The Medicines Company Reports Fourth Quarter and Full Year 2012 Financial Results

Feb 20 2013 12:00AM

Marketwire

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PARSIPPANY, NJ -- (Marketwire) -- 02/20/13 -- The Medicines Company (NASDAQ: MDCO), a global biopharmaceutical company focused on advancing the treatment of critical care patients through the delivery of innovative, cost-effective medicines, today announced fourth quarter and full year financial results for 2012.

Financial highlights for the fourth quarter of 2012:

•Net revenue increased by 20.6% to $159.5 million for the fourth quarter of 2012 from $132.2 million in the fourth quarter of 2011.•Angiomax U.S. net revenue increased by 13.7% to $141.2 million in the fourth quarter of 2012 compared to $124.2 million in the fourth quarter of 2011. •Angiomax/Angiox international net revenue in the fourth quarter of 2012 increased by 77.2% to $14.0 million compared with $7.9 million in the fourth quarter of 2011.•Net income for the fourth quarter of 2012 was $20.7 million, or $0.38 per share, compared with net income of $19.6 million, or $0.36 per share, for the fourth quarter of 2011. •Non-GAAP net income for the fourth quarter of 2012 was $42.9 million, or $0.78 per share, compared to non-GAAP net income of $28.7 million, or $0.52 per share for the fourth quarter 2011. Non-GAAP net income excludes stock-based compensation expense, non-cash interest expense and non-cash income taxes.

Financial highlights for the full year 2012:

•Net revenue increased by 15.2% to $558.6 million for 2012 from $484.7 million in 2011.•Angiomax U.S. net revenue increased by 10.9% to $501.7 million in 2012 compared with $452.3 million in 2011. •Angiomax/Angiox international net revenue in 2012 increased by 47.4% to $46.5 million compared with $31.6 million in 2011.•Net income for 2012 was $51.3 million, or $0.93 per share, compared with net income of $127.9 million, or $2.35 per share, for 2011. •Non-GAAP net income for 2012 was $105.6 million, or $1.91 per share, compared with non-GAAP net income of $85.7 million, or $1.57 per share for 2011. Non-GAAP net income excludes stock-based compensation expense, non-cash interest expense and non-cash income taxes.

Glenn Sblendorio, President and Chief Financial Officer, stated, "In 2012, global revenue growth was driven by rapid year on year percentage growth in Europe and continued growth in the United States. Since 2010, we have been realizing the operating leverage we anticipated. Our Phase 3 R&D projects have produced positive results recently and we look forward to the oritavancin Phase 3 SOLO-2 trial completion and preparing for worldwide regulatory filings for cangrelor."

There will be a conference call with management today at 8:30 a.m. Eastern Time to discuss fourth quarter and full year 2012 financial results, operational developments and 2013 financial guidance. The conference call will be available via phone and webcast. The webcast can be accessed at The Medicines Company website at www.themedicinescompany.com. A guidance worksheet will be posted to the front page of The Medicines Company's website.

The dial in information is listed below:
Domestic Dial In: 800 688 0836
International Dial In: 617 614 4072
Passcode for both dial in numbers: 77632519

Replay is available from 10:30 a.m. Eastern Time following the conference call through March 6, 2013. To hear a replay of the call dial 888 286 8010 (domestic) and 617 801 6888 (international). Passcode for both dial in numbers is 15572588.

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, 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, 2012, 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 Three months ended(in thousands, except per share data) December 31, -------------------- 2012 2011 --------- ---------Net revenue $ 159,490 $ 132,231Operating expenses: Cost of revenue 52,228 44,007 Research and development 26,147 33,302 Selling, general and administrative 44,704 34,916 --------- --------- Total operating expenses 123,079 112,225 --------- ---------Income from operations 36,411 20,006 Co-promotion income 3,750 - Interest expense (3,616) - Other income 177 340 --------- ---------Income before income taxes 36,722 20,346Provision for income taxes (16,141) (764) --------- ---------Net income 20,581 19,582Net loss attributable to non-controlling interest 82 - --------- ---------Net income attributable to The Medicines Company $ 20,663 $ 19,582 ========= =========Basic earnings per common share attributable to The Medicines Company $ 0.39 $ 0.36 ========= =========Shares used in computing basic earnings per common share 53,221 53,739 ========= =========Diluted earnings per common share attributable to The Medicines Company $ 0.38 $ 0.36 ========= =========Shares used in computing diluted earnings per common share 55,022 54,899 ========= ========= The Medicines Company Condensed Consolidated Statements of Operations Year to Date(in thousands, except per share data) December 31, -------------------- 2012 2011 --------- ---------Net revenue $ 558,588 $ 484,732Operating expenses: Cost of revenue 177,339 156,866 Research and development 126,423 110,180 Selling, general and administrative 171,753 159,617 --------- --------- Total operating expenses 475,515 426,663 --------- ---------Income from operations 83,073 58,069 Legal settlement - 17,984 Co-promotion income 10,000 - Interest expense (8,005) - Other income 1,140 1,790 --------- ---------Income before income taxes 86,208 77,843(Provision) benefit for income taxes (35,038) 50,034 --------- ---------Net income 51,170 127,877Net loss attributable to non-controlling interest 84 - --------- ---------Net income attributable to The Medicines Company $ 51,254 $ 127,877 ========= =========Basic earnings per common share attributable to The Medicines Company $ 0.96 $ 2.39 ========= =========Shares used in computing basic earnings per common share 53,545 53,496 ========= =========Diluted earnings per common share attributable to The Medicines Company $ 0.93 $ 2.35 ========= =========Shares used in computing diluted earnings per common share 55,346 54,407 ========= ========= The Medicines Company Condensed Consolidated Balance Sheets December 31, December 31,(in thousands) 2012 2011 ------------ ------------ ASSETSCash, cash equivalents and available for sales securities $ 570,321 $ 340,512Accrued interest receivable 348 374Accounts receivable, net 85,893 74,559Inventory 76,355 45,145Deferred tax assets 13,881 9,395Prepaid expenses and other current assets 9,577 11,738 ------------ ------------ Total current assets 756,375 481,723Fixed assets, net 16,100 17,979Intangible assets, net 119,576 87,329Restricted cash 1,571 4,714Deferred tax assets 46,625 78,441Goodwill 14,671 14,671Other assets 17,264 7,790 ------------ ------------ Total assets $ 972,182 $ 692,647 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities $ 135,206 $ 154,635Contingent purchase price 18,971 20,431Convertible senior notes (due 2017) 226,109 -Other Long Term Liabilities 5,674 5,939Stockholders' equity 586,222 511,642 ------------ ------------ Total liabilities and stockholders' equity $ 972,182 $ 692,647 ============ ============ The Medicines Company Reconciliation of GAAP to non-GAAP Measures (unaudited) Three months ended Year to Date December 31, December 31, ------------------- -------------------EARNINGS PER SHARE 2012 2011 2012 2011 --------- --------- --------- ---------GAAP earnings per share - Diluted $ 0.38 $ 0.36 $ 0.93 $ 2.35 Adjustments to net income attributable to The Medicines Company (as detailed below) 0.40 0.17 0.98 (0.78) --------- --------- --------- ---------Non-GAAP earnings per share - Diluted $ 0.78 $ 0.52 $ 1.91 $ 1.57 ========= ========= ========= =========An itemized reconciliation between net income attributable to The MedicinesCompany on a GAAP basis and net income attributable to The MedicinesCompany on a non-GAAP basis is as follows: Three months ended Year to Date(in thousands) December 31, December 31, ------------------- ------------------- 2012 2011 2012 2011 --------- --------- --------- ---------GAAP net income attributable to The Medicines Company $ 20,663 $ 19,582 $ 51,254 $ 127,877 Adjustments: Cost of revenue: Stock-based compensation expense 49 27 176 125 Research and development: Stock-based compensation expense 539 385 2,265 1,870 Selling, general and administrative: Stock-based compensation expense 3,258 2,230 12,537 9,022 Non-cash interest expense 2,671 - 5,904 - Non-cash tax provision 15,747 6,507 33,493 (53,236) --------- --------- --------- ---------Non-GAAP net income attributable to The Medicines Company $ 42,927 $ 28,731 $ 105,629 $ 85,658 ========= ========= ========= =========The Company believes that presenting the non-GAAP information contained inthe financial tables and in this press release assists investors and othersin gaining a better understanding of the Company's core operating resultsand future prospects, expected growth rates or forecasted guidance,particularly as related to stock-based compensation expense and non-cashincome taxes. Management uses this non-GAAP information, in addition to theGAAP information, as the basis for measuring the Company's core operatingperformance and comparing such performance to that of prior periods and tothe performance of its competitors. Such measures are also used bymanagement in its financial and operating decision-making. Non-GAAPinformation is not meant to be considered superior to or a substitute forthe Company's results of operations prepared in accordance with GAAP.





Contact:
Michael Mitchell
The Medicines Company
973-290-6097
investor.relations@themedco.com





Source: Marketwire