Exhibit 99.1
Contact: | | Robyn Brown |
| | Vice President, Investor Relations |
| | The Medicines Company |
| | 973-656-1616 |
| | investor.relations@themedco.com |
FOR IMMEDIATE RELEASE:
THE MEDICINES COMPANY REPORTS
FIRST QUARTER 2008 FINANCIAL RESULTS
PARSIPPANY, NJ – April 23, 2008 – The Medicines Company (NASDAQ: MDCO) today announced its financial results for the first quarter of 2008.
Financial highlights for the first quarter of 2008:
· Net revenue increased by 19% to $79.4 million for the first quarter of 2008 from $66.6 million for the first quarter of 2007.
· Angiomax® (bivalirudin) U.S. sales increased by 16% to $76.9 million for the first quarter of 2008 from $66.3 million for the first quarter of 2007.
· Angiomax/Angiox international net revenue in the first quarter of 2008 increased $2.2 million to $2.5 million compared to $0.3 million in the first quarter of 2007.
· Net income for the first quarter of 2008 was $4.9 million, or $0.09 per share, compared to net income of $3.0 million, or $0.06 per share for the first quarter of 2007.
· Excluding stock-based compensation expense and non-cash income taxes, the Company reported first quarter non-GAAP net income of $12.4 million, or $0.24 per share, compared to non-GAAP net income of $8.2 million, or $0.15 per share for the first quarter of 2007.
John Kelley, President and Chief Operating Officer, stated, “This was a strong quarter. We are pleased with the top line growth in our base business which we expect to continue. We are also excited about our other platforms for growth including expansion into Europe, near term pipeline opportunities and business development activities.”
The Medicines Company 8 Campus Drive Parsippany, New Jersey 07054 Tel: (973)656-1616 Fax: (973)656-9898
The following table provides reconciliations between GAAP and non-GAAP net income for the first quarter (Q1) of 2008 and 2007. Non-GAAP net income excludes stock-based compensation expense and the non-cash provision for income taxes:
(in millions) | | Reported
GAAP Net
Income | | FAS 123R Stock-Based
Compensation
Expense | | Non-Cash
Provision for
Income Taxes | | Non-GAAP Net Income
(1) | |
Q1 2008 | | $ | 4.9 | | $ | 4.6 | | $ | 3.0 | | $ | 12.4 | |
Q1 2007 | | $ | 3.0 | | $ | 3.5 | | $ | 1.6 | | $ | 8.2 | |
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 EPS for the first quarter (Q1) of 2008 and 2007 are provided in the following table:
(per share) | | Reported
GAAP Net
Income | | FAS 123R Stock-Based
Compensation
Expense | | Non-Cash
Provision for
Income Taxes | | Non-GAAP Net Income
(1) | |
Q1 2008 | | $ | 0.09 | | $ | 0.09 | | $ | 0.06 | | $ | 0.24 | |
Q1 2007 | | $ | 0.06 | | $ | 0.07 | | $ | 0.03 | | $ | 0.15 | |
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, particularly as related to stock-based compensation expense and the non-cash provision for 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 AM Eastern Time to discuss first quarter 2008 financial results, operational developments and 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.
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The dial in information is listed below:
Domestic Dial In: | | 877-548-7901 |
International Dial In: | | 719-325-4900 |
Replay is available from 11:30 AM Eastern Time following the conference call through May 7, 2008. To hear a replay of the call dial 888-203-1112 (domestic) and 719-457-0820 (international). Passcode for both dial in numbers is 4364074.
MDCO-F
About The Medicines Company: The Medicines Company (NASDAQ: MDCO) is committed to delivering innovative,
cost-effective acute care products in the worldwide hospital marketplace. The Company markets Angiomax® / Angiox® (bivalirudin) in the United States 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, CleviprexTM (clevidipine butyrate) injectable emulsion 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 the extent of the commercial success of Angiomax, 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, such as the Company’s new drug application regarding Cleviprex and supplemental new drug application for an ACS indication for Angiomax, will receive approvals from regulatory agencies on a timely basis or at all, 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 10-K filed on February 29, 2008, 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
Consolidated Statements of Operations
(unaudited)
| | Three months ended March 31, | |
(in thousands, except per share data) | | 2008 | | 2007 | |
| | | | | |
Net revenue | | $ | 79,427 | | $ | 66,647 | |
| | | | | |
Operating expenses: | | | | | |
Cost of revenue | | 19,092 | | 17,780 | |
Research and development | | 18,663 | | 19,478 | |
Selling, general and administrative | | 35,350 | | 27,138 | |
Total operating expenses | | 73,105 | | 64,396 | |
| | | | | |
Income from operations | | 6,322 | | 2,251 | |
| | | | | |
Other income | | 2,381 | | 2,583 | |
| | | | | |
Income before income taxes | | 8,703 | | 4,834 | |
Provision for income taxes | | (3,850 | ) | (1,785 | ) |
| | | | | |
Net income | | $ | 4,853 | | $ | 3,049 | |
| | | | | |
Basic earnings per common share | | $ | 0.09 | | $ | 0.06 | |
Shares used in computing basic earnings per common share | | 51,749 | | 51,490 | |
| | | | | |
Diluted earnings per common share | | $ | 0.09 | | $ | 0.06 | |
Shares used in computing diluted earnings per common share | | 52,274 | | 52,977 | |
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The Medicines Company
Condensed Consolidated Balance Sheets
(unaudited)
| | March 31, | | December 31, | |
(in thousands) | | 2008 | | 2007 | |
| | | | | |
ASSETS | | | | | |
Cash, cash equivalents and available for sales securities | | $ | 216,287 | | $ | 222,113 | |
Accrued interest receivable | | 1,286 | | 1,598 | |
Accounts receivable, net | | 30,030 | | 25,584 | |
Inventory | | 33,087 | | 35,468 | |
Prepaid expenses and other current assets | | 9,526 | | 7,425 | |
Total current assets | | 290,216 | | 292,188 | |
| | | | | |
Fixed assets, net | | 3,406 | | 3,245 | |
Intangible assets, net | | 14,785 | | 14,929 | |
Restricted cash | | 5,000 | | 5,000 | |
Deferred tax assets | | 43,015 | | 46,018 | |
Other assets | | 180 | | 136 | |
Total assets | | $ | 356,602 | | $ | 361,516 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
Current liabilities | | $ | 67,497 | | $ | 83,620 | |
Stockholders’ equity | | 289,105 | | 277,896 | |
Total liabilities and stockholders’ equity | | $ | 356,602 | | $ | 361,516 | |
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The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(Amounts in thousands, except per share data)
(Unaudited)
| | Three Months Ended March 31, | |
| | 2008 | |
| | GAAP (1)
As Reported | | SFAS123R | | Non-
Cash Tax
Provision | | Non-GAAP (4)
As Adjusted | |
Net revenue | | $ | 79,427 | | $ | — | | $ | — | | $ | 79,427 | |
| | | | | | | | | |
Operating expenses: | | | | | | | | | |
Cost of revenue | | 19,092 | | (137 | )(2) | — | | 18,955 | |
Research and development | | 18,663 | | (680 | )(2) | — | | 17,983 | |
Selling, general and administrative | | 35,350 | | (3,745 | )(2) | — | | 31,605 | |
Total operating expenses | | 73,105 | | (4,562 | ) | — | | 68,543 | |
| | | | | | | | | |
Income from operations | | 6,322 | | 4,562 | | — | | 10,884 | |
| | | | | | | | | |
Other income | | 2,381 | | — | | — | | 2,381 | |
Income before income taxes | | 8,703 | | 4,562 | | — | | 13,265 | |
Provision for income taxes | | (3,850 | ) | — | | 3,016 | (3) | (834 | ) |
Net income | | 4,853 | | 4,562 | | 3,016 | | 12,431 | |
| | | | | | | | | |
Basic earnings per common share | | $ | 0.09 | | $ | 0.09 | | $ | 0.06 | | $ | 0.24 | |
| | | | | | | | | |
Shares used in computing basic earnings per common share | | 51,749 | | 51,749 | | 51,749 | | 51,749 | |
| | | | | | | | | |
Diluted earnings per common share | | $ | 0.09 | | $ | 0.09 | | $ | 0.06 | | $ | 0.24 | |
| | | | | | | | | |
Shares used in computing diluted earnings per common share | | 52,274 | | 52,274 | | 52,274 | | 52,274 | |
(1) | GAAP Results |
(2) | Non-cash stock compensation expense |
(3) | Non-cash tax provision |
(4) | Non-GAAP Results |
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