EXHIBIT 99.1
Contact: Peyton Marshall Jill Sawdon
Chief Financial Officer Director of Corporate Communications
The Medicines Company The Medicines Company
(617) 225-9099 (ph) (617) 225-9099 (ph)
(617) 225-2397 (fx) (617) 225-2397 (fx)
For Immediate Release
THE MEDICINES COMPANY REPORTS THIRD QUARTER 2001 FINANCIAL RESULTS
CAMBRIDGE, MA, October 24, 2001 - The Medicines Company (NASDAQ: MDCO) announced
today its financial results for the quarter and nine month periods ended
September 30, 2001. Financial highlights for the quarter and nine months
included:
- Revenues of $3.5 million for the three months ended September
30, 2001 and $7.4 million for the nine months ended September
30, 2001, consistent with the guidance provided by the Company
on October 13, 2001.
- Net loss attributable to common stockholders of $11.3 million,
or $0.33 per share, for the three months ended September 30,
2001, compared to a pro forma net loss attributable to common
stockholders of $9.5 million, or $0.34 per share, for the
three months ended September 30, 2000. For the nine months
ended September 30, 2001, the Company had a net loss
attributable to common stockholders of $46.4 million, or $1.43
per share, compared to a pro forma net loss attributable to
common stockholders of $29.7 million, or $1.28 per share, for
the nine months ended September 30, 2000. The pro forma
adjustments, which impacted the results for the three and nine
months ended September 30, 2000, reflect the conversion of
preferred stock, accrued dividends, convertible notes and
accrued interest in 2000 and exclude interest expense of $19.4
million for the nine months ended September 30, 2000, which
are predominantly non-cash. There was no interest expense for
the three months ended September 30, 2000.
- Net loss attributable to common stockholders of $11.3 million,
or $0.33 per share, for the three months ended September 30,
2001, compared to a net loss attributable to common
shareholders of $11.1 million, or $0.67 per share, for the
three months ended September 30, 2000. For the nine months
ended September 30, 2001, the Company had a net loss
attributable to common stockholders of $46.4 million, or $1.43
per share, compared to a net loss attributable to common
stockholders of $79.5 million or $13.32 per share for the nine
months ended September 30, 2000. The results for the three and
nine months ended September 30, 2000 included a non-cash
dividend of $1.6 million and $30.3 million, respectively, and
interest expenses of $19.4 million for the nine months ended
September 30, 2000, which are predominantly non-cash. There
was no interest expense for the three months ended September
30, 2000.
- Loss from operations of $12.1 million for the three months
ended September 30, 2001 compared to $10.3 million for the
three months ended September 30, 2000. For the nine months
ended September 30, 2001, the Company had a loss from
operations of $48.4 million compared to $30.8 million for the
same period in 2000. The increased losses in these periods
were due primarily to increased selling, general and
administrative expenses reflecting the Company's sales and
marketing expenditures in connection with the United States
commercial launch of ANGIOMAX in January 2001, and in the case
of the nine month period to increased research and development
expenses primarily due to increased clinical trial activities
related to ANGIOMAX. The Company had a cost of revenue of
$564,835 for the three months ended September 30, 2001 and
$1.2 million for the nine months ended September 30, 2001.
These increases in expenses were partially offset by revenue
of $3.5 million in the three months ended September 30, 2001
and $7.4 million in the nine months ended September 30, 2001.
The Company had no revenue in the first nine months of 2000.
- As of September 30, 2001, the Company had cash, cash
equivalents, marketable securities and accrued interest
receivable of $69.5 million.
Business highlights for the third quarter included:
- An increase in revenues of 75% over the second quarter of
2001.
- Increased hospital stockings and formulary adoptions of
ANGIOMAX(R) (bivalirudin) to levels higher than anticipated by
the Company: of the 515 hospitals called on prior to the
Company's sales force expansion, 62% (317) stocked ANGIOMAX
and 43% (222) included ANGIOMAX on formulary as of October 15.
- Conversion of the Innovex sales force beginning October 1 to
full-time employees of the Company and an additional expansion
of the total sales force by 31%, enabling the Company to
extend coverage to the 750 cardiac catheterization labs in the
US targeted by the Company.
- Announcement of results from HERO-2, an international trial
studying the effects of ANGIOMAX as a potential agent in
patients receiving fibrinolysis for myocardial infarction.
Investigators in the trial observed that patients treated with
ANGIOMAX had a 30% reduction in second myocardial infarction
at 96 hours compared to heparin (p-value 0.001).
- Promotion of Clive Meanwell to Executive Chairman and David
Stack to full-time President and Chief Executive Officer.
"This has been a quarter of steady growth and progress," said Clive Meanwell,
M.D., Ph.D., Executive Chairman. "The Company is ahead of our forecasted
expectations for use in patients, reflecting a solid acceptance of ANGIOMAX by
the hospitals and doctors we have reached to date. With the integration of the
Innovex sales team complete and a significantly expanded sales force, we expect
to extend the momentum we've built with stocking and formulary adoptions in our
existing hospital franchise to all 750 cardiac catheterization labs we have
targeted. We expect that expanding the Company's hospital coverage and reach to
more patients will drive ANGIOMAX's long-term sales growth and position the
Company to meet the needs of patients, hospitals and physicians."
There will be a conference call with management today at 4:30 to discuss these
results. To listen in, please dial 888.890.6816. If you are calling from outside
the United States, please dial 1.847.619.6449. If you are unable to participate
in the live call, an electronic recording will be available through November 1.
To listen to the recording, please dial 888.843.8996 or 1.630.652.3044 from
outside the United States. The passcode for the call is 4815470. The call will
also be webcast from the Company's homepage, www.themedicinescompany.com.
The Medicines Company was founded in 1996 to acquire, develop and commercialize
selected pharmaceutical products in late stages of development and approved
products. In December 2000, the Company received marketing approval from the
U.S. Food and Drug Administration for ANGIOMAX for use as an anticoagulant in
combination with aspirin in patients with unstable angina undergoing coronary
balloon angioplasty. The Company began selling ANGIOMAX in the United States in
January 2001. The Company expects ANGIOMAX to be the cornerstone product of a
planned acute hospital franchise. The Company is also developing a second
product, CTV-05, a proprietary biotherapeutic agent with a potentially broad
range of applications in the treatment of gynecological and reproductive
infections. Additional information about the company and its products can be
found at www.themedicinescompany.com.
This press release contains forward-looking statements that involve a number of
risks and uncertainties. For this purpose, any statements contained herein that
are not statements of historical fact may be deemed to be forward-looking
statements. Without limiting the foregoing, the words, "believes,"
"anticipates," "plans," "expects," "intends," and similar expressions are
intended to identify forward-looking statements. Important factors that could
cause actual results to differ materially from the expectations described in
these forward-looking statements are set forth under the caption "Certain
Factors that May Affect Future Results" in the Company's Quarterly Report on
Form 10-Q filed with the Securities and Exchange Commission on August 13, 2001
and incorporated herein by reference. These risk factors include risks as to the
commercial success of ANGIOMAX; how long the Company will be able to operate on
its existing capital resources; whether the Company's products (other than
ANGIOMAX for its approved indication) will advance in the clinical trials
process, the timing of such clinical trials, whether the clinical trial results
will warrant continued product development, whether and when, if at all, the
Company's products will receive approval from the U.S. Food and
Drug Administration or equivalent regulatory agencies, and for which
indications, and, if such products receive approval, whether they will be
successfully marketed; the Company's history of net losses; and the Company's
dependence on third parties, including manufacturers, suppliers and
collaborators. We do not assume any obligation to update any forward-looking
statements.
The Medicines Company
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
THREE MONTHS ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000
2001 ----------------------------------------
ACTUAL ACTUAL PRO FORMA (1)
-------------------------------------------------------------------
Revenue $ 3,526,234 $ -- $ --
Operating Expenses
Cost of revenue 564,835 -- --
Research and development 6,325,575 6,734,799 6,734,799
Selling, general and administrative 8,732,412 3,562,440 3,562,440
------------ ------------ ------------
Total operating expenses 15,622,822 10,297,239 10,297,239
Loss from operations (12,096,588) (10,297,239) (10,297,239)
Interest income (expense), net 787,659 838,606 838,606
------------ ------------ ------------
Net loss (11,308,929) (9,458,633) (9,458,633)
Dividends and accretion to redemption
value of redeemable preferred stock -- (1,624,395) --
------------ ------------ ------------
Net loss attributable to common stockholders $(11,308,929) $(11,083,028) $ (9,458,633)
============ ============ ============
Basic and diluted net loss attributable to
common stockholders per common share $ (0.33) $ (0.67) $ (0.34)
============ ============ ============
Shares used in computing net loss attributable
to common stockholders per common share:
Basic and diluted 34,502,886 16,467,030 27,514,031
============ ============ ============
NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2001 2000
----------------------------------------
ACTUAL ACTUAL PRO FORMA (1)
-------------------------------------------------------------------
Revenue $ 7,435,063 $ -- $ --
Operating Expenses
Cost of revenue 1,216,278 -- --
Research and development 27,229,728 23,503,579 23,503,579
Selling, general and administrative 27,359,289 7,339,618 7,339,618
------------ ------------ ------------
Total operating expenses 55,805,295 30,843,197 30,843,197
Loss from operations (48,370,232) (30,843,197) (30,843,197)
Interest income (expense), net 2,852,188 (18,266,083) 1,124,331
Loss on sale of investments (850,000) -- --
------------ ------------ ------------
Net loss (46,368,044) (49,109,280) (29,718,866)
Dividends and accretion to redemption
value of redeemable preferred stock -- (30,342,988) --
------------ ------------ ------------
Net loss attributable to common stockholders $(46,368,044) $(79,452,268) $(29,718,866)
============ ============ ============
Basic and diluted net loss attributable to common
stockholders per common share $ (1.43) $ (13.32) $ (1.28)
============ ============ ============
Shares used in computing net loss attributable to
common stockholders per common share:
Basic and diluted 32,382,878 5,964,852 23,222,614
============ ============ ============
CONDENSED CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, DECEMBER 31,
2001 2000
---- ----
ASSETS (Unaudited)
Cash, cash equivalents, marketable securities $69,198,112 $79,325,085
Accrued interest receivable 260,686 1,392,928
Accounts receivables 3,011,355 --
Inventory 6,832,226 1,963,491
Fixed assets, net 1,219,183 965,832
Other assets 859,041 715,794
----------- -----------
Total Assets $81,380,603 $84,363,130
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $12,849,702 $15,124,147
Stockholders' equity 68,530,901 69,238,983
----------- -----------
Total Liabilities and Stockholders' Equity $81,380,603 $84,363,130
=========== ===========
(1) Pro Forma amounts in 2000 reflect the conversion of all the outstanding
redeemable convertible preferred stock and accrued dividends and all convertible
notes and accrued interest as if conversion had occurred at the date of original
issuance of the convertible preferred stock and the convertible notes. All
redeemable convertible preferred stock and convertible notes were converted into
common stock during 2000.