Exhibit 99.1
Contact: Michael Mitchell
Executive Director, Corporate Affairs
The Medicines Company
973-656-1616
investor.relations@themedco.com
FOR IMMEDIATE RELEASE:
THE MEDICINES COMPANY REPORTS FIRST QUARTER 2007 FINANCIAL RESULTS
PARSIPPANY, NJ — April 18, 2007 — The Medicines Company (NASDAQ: MDCO) today announced its financial results for the first quarter 2007. The Company reported first quarter net revenue of $66.6 million. Fully diluted earnings per share (EPS) as reported under U.S. generally accepted accounting principles (GAAP) were $0.06, which includes stock based compensation expense and a provision for income taxes, a portion of which will be offset by available net operating loss (NOL) carryforwards. Excluding the stock based compensation expense, the Company reported fully diluted non-GAAP EPS of $0.12. Excluding both the stock based compensation expense and the portion of the tax provision that will be offset by available NOL carryforwards, the Company reported fully diluted non-GAAP EPS of $0.15.
“Revenues grew substantially in the first quarter due to significant Angiomax® (bivalirudin) growth in the U.S.,” said Glenn Sblendorio, Executive Vice President and Chief Financial Officer of The Medicines Company. “We are where we expected to be for first quarter earnings and we believe we are on track toward our 2007 GAAP earnings guidance of $22 to $25 million.”
Additional financial highlights:
· Net revenue increased to $66.6 million for the first quarter 2007, compared with $34.6 million for the first quarter of 2006. First quarter 2007 U.S. sales of Angiomax were $66.3 million, while international sales were $0.3 million.
· Net income was $3.0 million for the first quarter 2007, compared to a net loss of $12.1 million for the first quarter 2006.
· Net income results include stock-based compensation expense, required by FAS 123R, of $3.5 million for the first quarter of 2007 compared to $1.5 million for the same period in 2006. Also included in first quarter 2007 net income is a provision for income taxes of $1.6 million, which will be offset by available NOL carryforwards. Excluding expense of stock-based compensation and the provision for income taxes, non-GAAP net income was $8.2 million for the first quarter 2007, compared to a non-GAAP net loss of $10.6 million for the first quarter 2006.
Reconciliations between GAAP and non-GAAP net income for the first quarters of 2007 and 2006 are provided in the following table:
(in millions) | | Reported
GAAP
Net Income
(Loss) | | FAS 123R Stock-
Based
Compensation
Expense | | Non-GAAP Net
Income (Loss)
Excluding FAS
123R Stock-Based
Compensation
Expense | | Non-Cash
Provision for
Income Taxes | | Fully Adjusted
Non-GAAP
Net Income (Loss) | |
Q1 2007 | | $ | 3.0 | | $ | 3.5 | | $ | 6.5 | | $ | 1.6 | | $ | 8.2 | |
Q1 2006 | | $ | (12.1 | ) | $ | 1.5 | | $ | (10.6 | ) | — | | $ | (10.6 | ) |
| | | | | | | | | | | | | | | | |
Note: Amounts may not sum due to rounding.
Reconciliations between GAAP and non-GAAP fully diluted EPS for the first quarters of 2007 and 2006 are provided in the following table:
(per share) | | Reported
GAAP
Net Income
(Loss) | | FAS 123R Stock-
Based
Compensation
Expense | | Non-GAAP Net
Income (Loss)
Excluding FAS
123R Stock-Based
Compensation
Expense | | Non-Cash
Provision for
Income Taxes | | Fully Adjusted
Non-GAAP
Net Income (Loss) | |
Q1 2007 | | $ | 0.06 | | $ | 0.07 | | $ | 0.12 | | $ | 0.03 | | $ | 0.15 | |
Q1 2006 | | $ | (0.24 | ) | $ | 0.03 | | $ | (0.21 | ) | — | | $ | (0.21 | ) |
| | | | | | | | | | | | | | | | |
Note: Amounts may not sum due to rounding.
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 both stock based compensation expense and the provision for income taxes, which will be offset by available NOL carryforwards. 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 be found in the attached financial tables.
“First quarter operating performance marks significant progress toward meeting our key 2007 goals for our acute care hospital franchise,” said John Kelley, President and Chief Operating Officer. “First, Angiomax sales growth in the U.S. was particularly strong. Final one-year results of the ACUITY trial of Angiomax were presented in March and were strong enough to move forward with regulatory submissions. We also expect in June to submit a new drug application to the FDA for Cleviprex™ (clevidipine), our novel blood pressure control agent. Finally, patient enrollment of Phase III trials for cangrelor, our novel antiplatelet therapy, remains on track.”
There will be a conference call with management today at 8:30 A.M. ET to discuss financial results, guidance, outlook 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: 800-310-6649
International Dial In: 719-457-2693
Replay is available from 11:30 a.m. Eastern Time following the conference call through May 9, 2007. To hear a replay of the call dial 888-203-1112 (domestic) and 719-457-0820 (international). Passcode for both dial in numbers is 9084728.
About The Medicines Company: The Medicines Company is committed to delivering innovative, cost-effective acute care hospital products in the worldwide hospital marketplace. The Company markets Angiomax® (bivalirudin) in the U.S. and other countries for use in patients undergoing coronary angioplasty, a procedure to clear restricted blood flow in arteries around the heart. The Company also has two products in late-stage development, Cleviprex™ (clevidipine) and cangrelor. The Company’s website is http://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 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 whether we are successful in extending the term of the principal patent covering Angiomax, the extent of the commercial success of Angiomax, the impact of FAS 123R on our future financial results, whether the Company’s products will advance in the clinical trials process on a timely basis or at all, whether we will make regulatory submissions for the Company’s product candidates on a timely basis; whether the Company’s product candidates will receive approvals from regulatory agencies on a timely basis or at all, 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 10-K filed on March 1, 2007, which are incorporated herein by reference. The Company specifically disclaims any obligation to update these forward-looking statements
