Medicines (MDCO) 8-K The Medicines Company Reports Third Quarter 2010 Financial Results

Exhibit 99.1

Contact:	Michael Mitchell
	The Medicines Company
	973-290-6000
	investor.relations@themedco.com

FOR IMMEDIATE RELEASE:

THE MEDICINES COMPANY REPORTS THIRD QUARTER 2010 FINANCIAL RESULTS

PARSIPPANY, NJ, October 27, 2010– The Medicines Company (NASDAQ: MDCO) today announced its financial results for the third quarter of 2010.

Financial highlights for the third quarter of 2010:

• Net revenue increased to $105.7 million for the third quarter from $98.8 million for the third quarter 2009.

• Angiomax U.S. sales increased 9% to $100.2 million compared to $92.2 million for the third quarter 2009.

• Angiox European sales increased 38% to $4.0 million compared to $2.9 million for the third quarter 2009.

• Rest of world Angiomax/Angiox sales decreased 42% to $1.5 million compared to $2.6 million for the third quarter 2009 on account of ordering patterns by partners

• Net income was $21.2 million, or $0.40 per share, compared to net loss of ($3.2) million, or ($0.06) per share for the third quarter 2009.

• Non-GAAP net income was $22.8 million, or $0.43 per share, compared to non-GAAP net income of $5.1 million, or $0.10 per share for the same period 2009. Non-GAAP net income excludes the transaction charges related to the 2009 Targanta acquisition, stock-based compensation expense and non-cash income taxes.

Clive Meanwell, MD, PhD, Chairman and Chief Executive Officer, stated, “In the third quarter we continued revenue and volume growth compared to 2009 in the U.S. and Europe. All of our development portfolio projects made advances. We continued to pursue tight cost control, resulting in strong earnings for the quarter. We expect to continue to run our business efficiently with an eye to top and bottom line results.”

Financial highlights for the first nine months of 2010:

• Net revenue increased to $318 million for the first nine months of 2010 from $302.2 million for same period 2009.

• Angiomax U.S. sales increased to $300.3 million compared to $286.6 million for same period 2009.

• Angiomax/Angiox international net revenue increased to $16.9 million compared to $13.1 million for same period 2009.

• Net income was $46.1 million, or $0.87 per share, compared to net loss of ($2.7) million, or ($0.05) per share for same period 2009.

• Non-GAAP net income was $53.6 million, or $1.02 per share, compared to non-GAAP net income of $20.9 million, or $0.40 per share for the same period 2009. Non-GAAP net income excludes the transaction charges related to the 2009 Targanta acquisition, stock-based compensation expense and non-cash income taxes.

The following table provides reconciliations between GAAP and non-GAAP net income (loss) for third quarter (Q3) and first nine months (9M) of 2010. Non-GAAP net income excludes the transaction charges related to the first quarter 2009 Targanta acquisition, stock-based compensation expense and non-cash income taxes:

						FAS 123R
						Stock-Based		Non-cash Provision
	Reported GAAP			Targanta		Compensation		(Benefit) for			Non-GAAP Net
(in millions)	Net Income (Loss)			Acquisition Costs		Expense		Income Taxes			Income(1)
Q3 2010	$	21.2		$	—	$	1.8	$	(0.2	)	$	22.8
Q3 2009	$	(3.2	)	$	—	$	4.4	$	3.8		$	5.1
9M 2010	$	46.1		$	—	$	6.8	$	0.7		$	53.6
9M 2009	$	(2.7	)	$	4.3	$	15.3	$	4.0		$	20.9

Note: Amounts may not sum due to rounding.

(1) Excluding the Targanta acquisition costs, stock-based compensation expense and the non-cash provision (benefit) for income taxes.

Reconciliations between GAAP and non-GAAP fully diluted earnings per share (EPS) for the third quarter (Q3) and first nine months (9M) of 2010 and 2009 are provided in the following table:

						FAS 123R
						Stock-Based		Non-cash Provision
	Reported GAAP			Targanta		Compensation		(Benefit) for		Non-GAAP
(per share)	EPS			Acquisition Costs		Expense		Income Taxes		EPS(1)
Q3 2010	$	0.40		$	—	$	0.03	$	—	$	0.43
Q3 2009	$	(0.06	)	$	—	$	0.09	$	0.07	$	0.10
9M 2010	$	0.87		$	—	$	0.13	$	0.01	$	1.02
9M 2009	$	(0.05	)	$	0.08	$	0.29	$	0.08	$	0.40

Note: Amounts may not sum due to rounding.

(1) Excluding the Targanta acquisition costs, stock-based compensation expense and the non-cash provision for income taxes.

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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 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:	866-700-6067
International Dial In:	617-213-8834
Passcode for both dial in numbers:	19125468

Replay is available from 11:30 a.m. Eastern Time following the conference call through November 11, 2010. To hear a replay of the call dial 888-286-8010 (domestic) and 617-801-6888 (international). Passcode for both dial in numbers is 61529947.

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 iswww.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

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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 Quarterly Report on Form 10-Q filed on August 9, 2010, which are incorporated herein by reference. The Company specifically disclaims any obligation to update these forward-looking statements.

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The Medicines Company
Condensed Consolidated Statements of Operations
(unaudited)

	Three months ended September 30,
(in thousands, except per share data)	2010			2009
Net revenue	$	105,743		$	98,789
Operating expenses:
Cost of revenue		31,568			28,308
Research and development		16,676			22,464
Selling, general and administrative		35,788			47,358
Total operating expenses		84,032			98,130
Income from operations		21,711			659
Other income		483			151
Income before income taxes		22,194			810
Provision for income taxes		(989	)		(4,007	)
Net income (loss)	$	21,205		$	(3,197	)
Basic earnings (loss) per common share	$	0.40		$	(0.06	)
Shares used in computing basic earnings (loss) per common share		52,991			52,298
Diluted earnings (loss) per common share	$	0.40		$	(0.06	)
Shares used in computing diluted earnings (loss) per common share		53,359			52,298

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The Medicines Company
Condensed Consolidated Statements of Operations
(unaudited)

	Year to Date September 30,
(in thousands, except per share data)	2010			2009
Net revenue	$	317,966		$	302,181
Operating expenses:
Cost of revenue		93,905			86,958
Research and development		54,128			68,685
Selling, general and administrative		121,318			146,863
Total operating expenses		269,351			302,506
Income (loss) from operations		48,615			(325	)
Other income		55			2,055
Income before income taxes		48,670			1,730
Provision for income taxes		(2,607	)		(4,465	)
Net income (loss)	$	46,063		$	(2,735	)
Basic earnings (loss) per common share	$	0.87		$	(0.05	)
Shares used in computing basic earnings (loss) per common share		52,773			52,225
Diluted earnings (loss) per common share	$	0.87		$	(0.05	)
Shares used in computing diluted earnings (loss) per common share		53,005			52,225

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The Medicines Company
Condensed Consolidated Balance Sheets

	September 30,		December 31
(in thousands)	2010		2009
ASSETS
Cash, cash equivalents and available for sales securities	$	227,453	$	176,191
Accrued interest receivable		922		922
Accounts receivable, net		34,070		29,789
Inventory		29,624		25,836
Prepaid expenses and other current assets		7,367		9,984
Total current assets		299,436		242,722
Fixed assets, net		21,387		25,072
Intangible assets, net		83,363		84,678
Restricted cash		5,764		7,049
Goodwill		14,671		14,934
Other assets		269		321
Total assets	$	424,890	$	374,776
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities	$	77,767	$	86,619
Contingent purchase price		25,932		23,667
Deferred tax liability		19,105		18,395
Other long term liabilities		5,829		5,706
Stockholders’ equity		296,257		240,389
Total liabilities and stockholders’ equity	$	424,890	$	374,776

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The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)

	Three Months Ended September 30,
	2010
	GAAP(1)			Targanta					Non-cash			Non-GAAP(5)
	As Reported			Acquisition(2)		SFAS 123R			Tax Provision			As Adjusted
Net revenue	$	105,743		$	—	$	—		$	—		$	105,743
Operating expenses:
Cost of revenue		31,568			—		(57	)(3)		—			31,511
Research and development		16,676			—		(331	)(3)		—			16,345
Selling, general and administrative		35,788			—		(1,387	)(3)		—			34,401
Total operating expenses		84,032			—		(1,775	)		—			82,257
Income from operations		21,711			—		1,775			—			23,486
Other (loss) income		483			—		—			—			483
Income before income taxes		22,194			—		1,775			—			23,969
(Provision) benefit for income taxes		(989	)		—		—			(148	) (4)		(1,137	)
Net income		21,205			—		1,775			(148	)		22,832
Basic earnings per common share	$	0.40		$	—	$	0.03			—		$	0.43
Shares used in computing basic earnings per common share		52,991			52,991		52,991			52,991			52,991
Diluted earnings per common share	$	0.40		$	—	$	0.03		$	—		$	0.43
Shares used in computing diluted earnings per common share		53,359			53,359		53,359			53,359			53,359

(1)	GAAP Results
(2)	Targanta Acquisition
(3)	Non-cash stock compensation expense
(4)	Non-cash income taxes
(5)	Non-GAAP Results

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The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)

	Nine Months Ended September 30,
	2010
				Targanta					Non-cash			Non-GAAP(5)
	GAAP(1)			Acquisition(2)		SFAS 123R			Tax Provision			As Adjusted
Net revenue	$	317,966		$	—	$	—		$	—		$	317,966
Costs and expenses:
Cost of revenue		93,905			—		(218	)(3)		—			93,687
Research and development		54,128			—		(1,569	)(3)		—			52,559
Selling, general and administrative		121,318			—		(5,068	)(3)		—			116,250
Total operating expenses		269,351			—		(6,855	)		—			262,496
Income from operations		48,615			—		6,855			—			55,470
Other (loss) income		55			—		—			—			55
Income before income taxes		48,670			—		6,855			—			55,525
(Provision) benefit for income taxes		(2,607	)		—		—			710	(4)		(1,897	)
Net income		46,063			—		6,855			710			53,628
Basic earnings per common share	$	0.87		$	—	$	0.13		$	0.01		$	1.02
Shares used in computing basic earnings per common share		52,773			52,773		52,773			52,773			52,773
Diluted earnings per common share	$	0.87		$	—	$	0.13		$	0.01		$	1.01
Shares used in computing diluted earnings per common share		53,005			53,005		53,005			53,005			53,005

(1)	GAAP Results
(2)	Targanta Acquisition
(3)	Non-cash stock compensation expense
(4)	Non-cash income taxes
(5)	Non-GAAP Results

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