Exhibit 99.1
The Medicines Company Reports Fourth Quarter
and Year 2004 Financial Results;
69% Revenue Growth from 2003 to 2004 Brings Year of Profitability
PARSIPPANY, N.J.--(BUSINESS WIRE)--Feb. 23, 2005--
Phase III Programs Deliver Clinical Results in 2004,
Additional Clinical Results Expected in 2005
The Medicines Company (Nasdaq: MDCO) today announced its financial
results for the fourth quarter and full year 2004.
Financial highlights include:
-- Year-on-year revenue growth of 69%. Net revenue for 2004 was
$144.3 million, compared to $85.6 million for 2003; for the
fourth quarter 2004, net revenue was $40.9 million, compared
to $28.9 million for the fourth quarter 2003.
-- First year of profitability. Net income for 2004 was $17.0
million, compared to a net loss of $16.9 million for 2003; for
the fourth quarter 2004, net income was $4.7 million, compared
to $2.3 million for the fourth quarter 2003.
-- Net income growth in fourth quarter. Net income per share for
2004 was $0.34 (diluted), compared to a net loss per share of
$0.37 for 2003; for the fourth quarter 2004, net income per
share was $0.09 (diluted), compared $0.05 (diluted) for the
fourth quarter 2003.
The Company reported the following operational developments in the
fourth quarter 2004:
-- Completed and reported top-line primary results for four Phase
III clinical trials, all of which met the pre-specified trial
objectives:
-- Two pivotal efficacy trials of Clevelox(TM) (clevidipine)
in cardiac surgery patients
-- Two safety trials of the use of Angiomax(R) (bivalirudin)
in cardiac surgery
-- Launch of Angiox(TM) (bivalirudin) in key European countries
by distribution partner Nycomed
-- Enrolled more than 6,000 patients in Phase III ACUITY trial of
Angiomax in acute coronary syndromes
Clive Meanwell, Chairman and CEO of The Medicines Company stated,
"We beat our performance plan for revenues and earnings for the year
2004, while making progress in late-stage clinical trials. These
programs set a foundation for potential launches of six indications or
products."
The Company also announced the election of John P. Kelley to the
Company's board of directors, as well as the departure of James E.
Thomas as a director. Mr. Kelley joined The Medicines Company as
President and Chief Operating Officer in December 2004 (press release
December 2, 2004). Mr. Thomas, who has been a director of the Company
since its inception, is the Managing Partner of Thomas, McNerney &
Partners, LLC, a health care private equity investment fund.
There will be a conference call with management today at 8:30 A.M.
to discuss financial results, operational developments and financial
outlook. To listen live, webcast login is available at
http://www.themedicinescompany.com. Alternatively, the call dial-in is
800-472-8325 (request The Medicines Company). From outside U.S.: dial
1-706-679-0816. Replay available for two weeks following call:
800-642-1687. Replay outside the U.S.: 1-706-645-9291. Replay
passcode: 4050862.
The Medicines Company meets the demands of the world's most
advanced medical practitioners by developing products that improve
acute hospital care. The Company markets Angiomax(R) (bivalirudin), an
anticoagulant approved in the U.S. and other countries for use in
patients undergoing percutaneous transluminal coronary angioplasty
(PTCA) procedures. The Medicines Company creates value using its range
of clinical and commercial skills to develop products acquired from
leading life science innovators.
Statements contained in this press release about The Medicines
Company, the Company's projected revenues and financial results,
Angiomax, the timing of clinical trial results and product or
indication launches, 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", "plans", "expects", "intends",
"potential", "estimates" 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, the Company's dependence on
third-party distributors for sales of Angiomax or Angiox in foreign
countries, physicians' acceptance of Angiomax clinical trial results,
such as the results referred to above, whether the Company will be
able to obtain regulatory approval for additional indications of
Angiomax, whether the Company's products will receive approvals from
regulatory agencies, including pricing and reimbursement approvals in
certain European countries, whether the Company's products will
advance in the clinical trials process, whether the clinical trial
results will warrant submission of applications for regulatory
approval, 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 November 5, 2004,
which are incorporated herein by reference. The Company specifically
disclaims any obligation to update these forward-looking statements.
The Medicines Company
Consolidated Statements of Operations
---------------------
Three months ended
(in thousands, except per share data) December 31,
---------------------
---------------------
2004 2003
---------- ----------
Net revenue $ 40,865 $ 28,888
Operating expenses:
Cost of revenue 8,795 2,914
Research and development 15,106 11,069
Selling, general and administrative 12,676 12,891
---------- ----------
Total operating expenses 36,577 26,874
---------- ----------
Income from operations 4,288 2,014
Other income 651 410
---------- ----------
Income before income taxes 4,939 2,424
Provision for income taxes (272) (128)
---------- ----------
Net income $ 4,667 $ 2,296
========== ==========
Basic earnings per common share $ 0.10 $ 0.05
========== ==========
Shares used in computing basic earnings per
common share 48,273 47,322
========== ==========
Diluted earnings per common share $ 0.09 $ 0.05
========== ==========
Shares used in computing diluted earnings per
common share 49,910 50,155
========== ==========
The Medicines Company
Consolidated Statements of Operations
---------------------
Twelve months ended
(in thousands, except per share data) December 31,
---------------------
---------------------
2004 2003
---------- ----------
Net revenue $ 144,251 $ 85,591
Operating expenses:
Cost of revenue 29,123 22,749
Research and development 49,290 35,905
Selling, general and administrative 50,275 45,082
---------- ----------
Total operating expenses 128,688 103,736
---------- ----------
Income/(loss) from operations 15,563 (18,145)
Other income 2,126 1,403
---------- ----------
Income/(loss) before income taxes 17,689 (16,742)
Provision for income taxes (690) (128)
---------- ----------
Net income/(loss) $ 16,999 $ (16,870)
========== ==========
Basic earnings/(loss) per common share $ 0.36 $ (0.37)
========== ==========
Shares used in computing basic earnings/(loss)
per common share 47,855 45,624
========== ==========
Diluted earnings/(loss) per common share $ 0.34 $ (0.37)
========== ==========
Shares used in computing diluted earnings/(loss)
per common share 49,772 45,624
========== ==========
The Medicines Company
Condensed Consolidated Balance Sheets
December 31, December 31,
(in thousands) 2004 2003
------------ ------------
ASSETS
Cash, cash equivalents, available for sale
securities $ 160,312 $ 135,864
Accrued interest receivable 912 991
Accounts receivable, net 18,388 15,660
Inventories 27,342 11,460
Prepaid expenses and other current assets 1,252 976
------------ ------------
Total current assets 208,206 164,951
------------ ------------
Fixed assets, net 1,677 1,511
Other assets 161 200
------------ ------------
Total assets $ 210,044 $ 166,662
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 34,856 $ 25,227
Deferred revenue 3,517 1,270
Stockholders' equity 171,671 140,165
------------ ------------
Total liabilities and stockholders'
equity $ 210,044 $ 166,662
============ ============
CONTACT: The Medicines Company
Director of Corporate Communications
Michael Mitchell, 973-656-1616
investor.relations@themedco.com