Health & Fitness
Health and Fitness
Health and Fitness
Fri, July 31, 2009
Thu, July 30, 2009
Wed, July 29, 2009 The Medicines Company: The Medicines Company Reports Second Quarter 2009 Financial Results
PARSIPPANY, NJ--(Marketwire - July 29, 2009) - The Medicines Company (
Highlights for the second quarter of 2009:
-- Net revenue increased by 20% to $104.2 million for the second quarter of 2009 from $86.7 million for the second quarter of 2008. -- Angiomax U.S. sales increased by 17% to $98.8 million in the second quarter of 2009 compared to $84.5 million in the second quarter of 2008. -- Angiomax/Angiox international net revenue in the second quarter of 2009 increased by 96% to $4.5 million compared to $2.3 million in the second quarter of 2008. -- Cleviprex has now been accepted by more than 240 hospital formularies and has been purchased by more than 300 hospitals in the United States. Net revenue in the second quarter of 2009 was $0.9M, up from $0.5M in the first quarter. -- Net income for the second quarter of 2009 was $3.8 million, or $0.07 per share, compared to net income of $4.1 million, or $0.08 per share, for the second quarter of 2008. -- Non-GAAP net income for the second quarter of 2009 was $12.3 million, or $0.24 per share, compared to non-GAAP net income of $14.5 million, or $0.28 per share, for the second quarter of 2008. Non-GAAP net income excludes the transaction costs associated with the Targanta acquisition, stock-based compensation expense and non-cash income taxes.
John Kelley, President and Chief Operating Officer, stated, "The core business, Angiomax and Angiox, is strong and growing. Cleviprex is becoming accepted by more and more hospitals, initial use has been in a wide range of patients, and we continue to view this product as an important and substantial opportunity."
Financial highlights for the first six months of 2009:
-- Net revenue increased by 22% to $203.4 million for the first six months of 2009 from $166.2 million for the same period in 2008. -- Angiomax U.S. sales increased by 21% to $194.3 million for the first six months of 2009 from $161.3 million for the first six months of 2008. -- Angiomax/Angiox international net revenue in the first six months of 2009 increased by 83% to $7.7 million compared to $4.2 million in the first six months of 2008. -- Cleviprex net revenue in the first six months of 2009 was $1.4M. -- Net income for the first six months of 2009 was $0.5 million, or $0.01 per share, and includes costs for Targanta acquisition, compared to net income of $8.9 million, or $0.17 per share, in the first six months of 2008. -- The Company reported non-GAAP net income of $15.5 million, or $0.29 per share, for the first six months of 2009, compared to non-GAAP net income of $26.9 million, or $0.51 per share, for the first six months of 2008. Non-GAAP net income excludes the Targanta acquisition, stock-based compensation expense and non-cash income taxes.
The following table provides reconciliations between GAAP and non-GAAP net (loss) income for the second quarter (Q2) and first six months (6M) of 2009 and 2008. 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 (Benefit) GAAP Net Targanta Stock-Based Provision (in (Loss) Transaction Compensation for Income Non-GAAP Net millions) Income Costs Expense Taxes Income (1) ------------ ------------ ------------ ----------- ------------ Q2 2009 $ 3.8 $ 0.3 $ 5.4 $ 2.8 $ 12.3 ------------ ------------ ------------ ----------- ------------ Q2 2008 $ 4.1 - $ 6.9 $ 3.6 $ 14.5 ------------ ------------ ------------ ----------- ------------ 6M 2009 $ 0.5 $ 4.3 $ 10.9 $ (0.2) $ 15.5 ------------ ------------ ------------ ----------- ------------ 6M 2008 $ 8.9 - $ 11.4 $ 6.6 $ 26.9 ------------ ------------ ------------ ----------- ------------ Note: Amounts may not sum due to rounding. (1) Excluding the transaction charges related to the Targanta acquisition, stock-based compensation expense and non-cash income taxes.
Reconciliations between GAAP and non-GAAP fully diluted (loss) earnings per share (EPS) for the second quarter (Q2) and first six months (6M) of 2009 and 2008 are provided in the following table:
Reported FAS 123R Non-Cash GAAP (Loss) Targanta Stock-Based Provision Earnings Transaction Compensation for Income Non-GAAP (per share) Per Share Costs Expense Taxes EPS (1) ------------ ------------ ------------ ----------- ------------ Q2 2009 $ 0.07 $ 0.01 $ 0.10 $ 0.05 $ 0.24 ------------ ------------ ------------ ------------ ------------ Q2 2008 $ 0.08 - $ 0.13 $ 0.07 $ 0.28 ------------ ------------ ------------ ------------ ------------ 6M 2009 $ 0.01 $ 0.08 $ 0.21 - $ 0.29 ------------ ------------ ------------ ------------ ------------ 6M 2008 $ 0.17 - $ 0.22 $ 0.13 $ 0.51 ------------ ------------ ------------ ------------ ------------ Note: Amounts may not sum due to rounding. (1) Excluding the transaction charges related to the Targanta acquisition, stock-based compensation expense and non-cash 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 second quarter 2009 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: 800-884-5695 International Dial In: 617-786-2960 Passcode for both dial in numbers: 64853162
Replay is available from 11:30 a.m. Eastern Time following the conference call through August 12, 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 37428278.
About The Medicines Company
The Medicines Company (
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, our ability to develop our 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 Quarterly Report on Form 10-Q filed on May 11, 2009, 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) (in thousands, except per share data) Three Months Ended June 30, -------------------------- 2009 2008 ------------ ------------ Net revenue $ 104,175 $ 86,731 Operating expenses: Cost of revenue 30,353 21,939 Research and development 21,784 19,781 Selling, general and administrative 45,910 38,789 ------------ ------------ Total operating expenses 98,047 80,509 ------------ ------------ Income (loss) from operations 6,128 6,222 Other income 734 1,805 ------------ ------------ Income (loss) before income taxes 6,862 8,027 Benefit (provision) for income taxes (3,051) (3,971) ------------ ------------ Net income (loss) $ 3,811 $ 4,056 ============ ============ Basic earnings (loss) per common share $ 0.07 $ 0.08 ============ ============ Shares used in computing basic earnings (loss) per common share 52,232 51,834 ============ ============ Diluted earnings (loss) per common share $ 0.07 $ 0.08 ============ ============ Shares used in computing diluted earnings (loss) per common share 52,533 52,441 ============ ============ The Medicines Company Condensed Consolidated Statements of Operations (unaudited) (in thousands, except per share data) Six Months Ended June 30, -------------------------- 2009 2008 ------------ ------------ Net revenue $ 203,392 $ 166,159 Operating expenses: Cost of revenue 58,650 41,032 Research and development 46,221 38,443 Selling, general and administrative 99,504 74,139 ------------ ------------ Total operating expenses 204,375 153,614 ------------ ------------ Income (loss) from operations (983) 12,545 Other income 1,903 4,186 ------------ ------------ Income (loss) before income taxes 920 16,731 Provision for income taxes (458) (7,821) ------------ ------------ Net income (loss) $ 462 $ 8,910 Basic earnings (loss) per common share $ 0.01 $ 0.17 ============ ============ Shares used in computing basic earnings (loss) per common share 52,187 51,792 ============ ============ Diluted earnings (loss) per common share $ 0.01 $ 0.17 ============ ============ Shares used in computing diluted earnings (loss) per common share 52,534 52,361 ============ ============ The Medicines Company Condensed Consolidated Balance Sheets June 30, December 31, (in thousands) 2009 2008 ------------ ------------ ASSETS Cash, cash equivalents and available for sales securities $ 185,774 $ 216,206 Accrued interest receivable 932 1,336 Accounts receivable, net 30,590 33,657 Inventory 25,578 28,229 Prepaid expenses and other current assets 17,969 16,402 ------------ ------------ Total current assets 260,843 295,830 ------------ ------------ Fixed assets, net 27,200 27,331 Intangible assets, net 15,763 16,349 Restricted cash 8,017 5,000 Deferred tax assets 9,624 37,657 In process research & development 68,400 --- Goodwill 27,135 --- Other assets 5,337 5,237 ------------ ------------ Total assets $ 422,319 $ 387,404 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $ 84,846 $ 83,608 Contingent purchase price 22,701 --- Other long term liabilities 5,650 5,771 Stockholders' equity 309,122 298,025 ------------ ------------ Total liabilities and stockholders' equity $ 422,319 $ 387,404 ============ ============ The Medicines Company Reconciliation of GAAP to non-GAAP Measures (All amounts in thousands, except per share amounts) (Unaudited) Three Months Ended June 30, 2009 --------------------------------------------------------- Non-cash Non-GAAP Targanta SFAS Tax (5) As GAAP(1) Acquisition 123R Provision Adjusted -------- -------- -------- --------- -------- Net revenue $104,175 $ - $ - $ - $104,175 Operating expenses: Cost of revenue 30,353 - (253)(3) - 30,100 Research and development 21,784 (953)(3) - 20,831 Selling, general and administrative 45,910 (286)(2) (4,240)(3) - 41,384 -------- -------- -------- --------- -------- Total operating expenses 98,047 (286) (5,445) - 92,316 Income from operations 6,128 286 5,445 - 11,859 Other income 734 - - - 734 -------- -------- -------- --------- -------- Income before income taxes 6,882 286 5,445 - 12,593 Benefit (provision) for income taxes (3,051) -(2) - 2,795(4) (256) -------- -------- -------- --------- -------- Net income 3,811 286 5,445 2,795 12,337 Basic earnings per common share $ 0.07 $ 0.01 $ 0.10 $ 0.05 $ 0.24 ======== ======== ======== ========= ======== Shares used in computing basic earnings per common share 52,232 52,232 52,232 52,232 52,232 ======== ======== ======== ========= ======== Diluted earnings per common share $ 0.07 $ 0.01 $ 0.10 $ 0.05 $ 0.24 ======== ======== ======== ========= ======== Shares used in computing diluted earnings per common share 52,533 52,496 52,496 52,496 52,496 ======== ======== ======== ========= ======== (1) GAAP results (2) Targanta aquisition (3) Non-cash 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) Six Months Ended June 30, 2009 --------------------------------------------------------- Non-cash Non-GAAP Targanta SFAS Tax (5) As GAAP(1) Acquisition 123R Provision Adjusted -------- -------- -------- --------- -------- Net revenue $203,392 $ - $ - $ - $203,392 Operating expenses: Cost of revenue 58,650 - (474)(3) - 58,176 Research and development 46,221 (1,939)(3) - 44,282 Selling, general and administrative 99,504 (4,281)(2) (8,494)(3) - 86,730 -------- -------- -------- --------- -------- Total operating expenses 204,375 (4,281) (10,906) - 189,188 (Loss) income from operations (983) 4,281 10,906 - 14,204 Other income 1,903 - - - 1,903 -------- -------- -------- --------- -------- Income before income taxes 920 4,281 10,906 - 16,107 (Provision) benefit for income taxes (458) -(2) - (162)(4) (620) -------- -------- -------- --------- -------- Net income (loss) 462 4,281 10,906 (162) 15,487 Basic earnings (loss) per common share $ 0.01 $ 0.08 $ 0.21 $ (0.00) $ 0.30 ======== ======== ======== ========= ======== Shares used in computing basic earnings (loss) per common share 52,187 52,187 52,187 52,187 52,187 ======== ======== ======== ========= ======== Diluted earnings (loss) per common share $ 0.01 $ 0.08 $ 0.21 $ (0.00) $ 0.29 ======== ======== ======== ========= ======== Shares used in computing diluted (loss) earnings per common share 52,534 52,534 52,534 52,534 52,534 ======== ======== ======== ========= ======== (1) GAAP results (2) Targanta aquisition (3) Non-cash compensation expense (4) Non-cash income taxes (5) Non-GAAP results
