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 FOURTH QUARTER AND
FULL YEAR 2001 FINANCIAL RESULTS
CAMBRIDGE, MA, February 12, 2002 - The Medicines Company (NASDAQ: MDCO)
announced today its results for the fourth quarter and full year ended December
31, 2001. Financial highlights for the quarter and full year included:
- Revenues of $6.8 million for the three months ended December 31 and
$14.2 million for the full year ended December 31, 2001. The Company
had no revenues in 2000.
- Net loss attributable to common stockholders of $8.5 million, or $0.25
per share, for the three months ended December 31, 2001, compared to a
net loss attributable to common stockholders of $22.2 million, or
$0.74 per share, for the three months ended December 31, 2000.
- Net loss attributable to common stockholders of $54.9 million, or
$1.67 per share for the full year ended December 31, 2001, compared to
a pro forma net loss attributable to common stockholders of $51.9
million, or $2.10 per share, and an actual net loss attributable to
common stockholders of $101.6 million, or $8.43 per share, for the
full year ended December 31, 2000. The pro forma adjustments, which
impacted the results for the full year ended December 31, 2000,
reflect the conversion of preferred stock, accrued dividends,
convertible notes and accrued interest in 2000 and exclude interest
expense of $19.4 million and a dividend of $30.3 million for the full
year ended December 31, 2000, which are predominantly non-cash. The
pro forma adjustments had no impact on either the financial statements
for the three months ended December 31, 2000 or for any period in
2001.
- Loss from operations of $8.8 million for the three months ended
December 31, 2001 compared to $23.8 million for the three months ended
December 31, 2000. For the full year ended December 31, 2001, the
Company had a loss from operations of $57.2 million compared to $54.6
million for the same period in 2000. The increased losses in the full
year 2001 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(R)(bivalirudin) in January 2001. These increased costs were
partly offset by reduced clinical development costs and by lower
manufacturing development costs related to the manufacture of ANGIOMAX
bulk drug product in 2000 that was expensed prior to FDA approval. The
Company had a cost of revenue of $894,147 for the three months ended
December 31, 2001 and $2.1 million for the full year ended December
31, 2001, compared to no cost of revenue in 2000. Expenses in 2001
were also partially offset by revenue of $6.8 million in the three
months ended December 31, 2001 and $14.2 million in the full year
ended December 31, 2001. The Company had no revenue in 2000.
- As of December 31, 2001, the Company had cash, cash equivalents,
marketable securities and accrued interest receivable of $54 million.
Recent business highlights included:
- An increase in fourth quarter revenues of 93% over the third quarter
of 2001.
- Publication of an analysis of thrombin inhibitors in the journal
Lancet, noting that among direct and indirect thrombin inhibitors only
ANGIOMAX reduced both ischemic and bleeding complications.
- Publication of clinical angioplasty data in the American Heart Journal
citing the therapeutic benefit and increased safety profile of
ANGIOMAX compared to heparin.
- An agreement with CSL Limited to act as exclusive and authorized
dealer for ANGIOMAX in Australia. ANGIOMAX is now licensed in 24
countries around the globe.
- Initiation in the fourth quarter 2001 of REPLACE part 2, studying
ANGIOMAX with provisional use of GP IIb/IIIa inhibitors vs. heparin
with GP IIb/IIIa inhibitors.
"We are pleased with the performance of ANGIOMAX in this initial year of
sales," said Clive Meanwell, M.D., Ph.D., Executive Chairman of The Medicines
Company. "2001 was a watershed year for the Company: we launched ANGIOMAX as an
innovative brand and transformed the Company from a development enterprise to an
operating business. We have
developed solid foundation competencies in the development, marketing and sales
of pharmaceuticals which will serve us well as we build our business."
Dave Stack, President and CEO of The Medicines Company added, "Our relationship
with our customers continues to grow. In 2001 we initiated a number of programs
to educate the marketplace about the benefits of ANGIOMAX. We are excited about
the progress of our clinical programs studying the use of ANGIOMAX in the cath
lab, the operating room and for use in emergency care."
There will be a conference call with management today at 5:00 to discuss these
results. To listen in, please dial 800-472-8325 and request The Medicines
Company 2001 Fourth Quarter conference call. If you are calling from outside of
the United States, please dial 1-706-679-0816. If you cannot attend the live
call, a digital replay will be available through February 26. Please call
800-642-1687 in the U.S. or 1-706-645-9291 internationally and enter passcode
2929840. Additionally, this call is being webcast by CCBN and can be accessed at
The Medicines Company's web site (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.
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 November 14, 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; whether the Company will be able to develop or acquire additional
products; 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 DECEMBER 31,
-----------------------------------------------------
2000
2001 ---------------------------------
ACTUAL ACTUAL PRO FORMA(1)
------------- ------------- -------------
Revenue $ 6,812,661 $ -- $ --
Operating Expenses
Cost of revenue 894,147 -- --
Research and development 5,537,666 16,068,718 16,068,718
Selling, general and administrative 9,207,472 7,693,967 7,693,967
------------ ------------ ------------
Total operating expenses 15,639,285 23,762,685 23,762,685
Loss from operations (8,826,624) (23,762,685) (23,762,685)
Interest income (expense), net 311,020 1,579,795 1,579,795
------------ ------------ ------------
Net loss (8,515,604) (22,182,890) (22,182,890)
Dividends and accretion to redemption
value of redeemable preferred stock -- -- --
------------ ------------ ------------
Net loss attributable to common stockholders $ (8,515,604) $(22,182,890) $(22,182,890)
============ ============ ============
Basic and diluted net loss attributable to
common stockholders per common share $ (0.25) $ (0.74) $ (0.74)
============ ============ ============
Shares used in computing net loss attributable
to common stockholders per common share:
Basic and diluted 34,559,387 30,179,267 30,179,267
============ ============ ============
YEARS ENDED DECEMBER 31,
-----------------------------------------------------
2000
2001 ---------------------------------
ACTUAL ACTUAL PRO FORMA(1)
------------- ------------- -------------
Revenue $ 14,247,724 $ -- $ --
Operating Expenses
Cost of revenue 2,110,425 -- --
Research and development 32,767,394 39,572,297 39,572,297
Selling, general and administrative 36,566,761 15,033,585 15,033,585
------------- ------------- -------------
Total operating expenses 71,444,580 54,605,882 54,605,882
Loss from operations (57,196,856) (54,605,882) (54,605,882)
Interest income (expense), net 3,163,208 (16,686,288) 2,704,126
Loss on sale of investments (850,000) -- --
------------- ------------- -------------
Net loss (54,883,648) (71,292,170) (51,901,756)
Dividends and accretion to redemption
value of redeemable preferred stock -- (30,342,988) --
------------- ------------- -------------
Net loss attributable to common stockholders $ (54,883,648) $(101,635,158) $ (51,901,756)
============= ============= =============
Basic and diluted net loss attributable to common
stockholders per common share $ (1.67) $ (8.43) $ (2.10)
============= ============= =============
Shares used in computing net loss attributable to
common stockholders per common share:
Basic and diluted 32,925,968 12,059,275 24,719,075
============= ============= =============
CONDENSED CONSOLIDATED BALANCE SHEETS DECEMBER 31, DECEMBER 31,
2001 2000
----------- -----------
(Unaudited)
ASSETS
Cash, cash equivalents, marketable securities $54,009,376 $79,325,085
Accrued interest receivable 6,757 1,392,928
Accounts receivables 5,346,684 --
Inventory 16,610,928 1,963,491
Fixed assets, net 1,223,528 965,832
Other assets 703,640 715,794
----------- -----------
Total Assets $77,900,913 $84,363,130
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $16,779,949 $15,124,147
Stockholders' equity 61,120,964 69,238,983
----------- -----------
Total Liabilities and Stockholders' Equity $77,900,913 $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.