The Medicines Company Reports Fourth Quarter and Full Year 2012 Financial Results

The Medicines Company Reports Fourth Quarter and Full Year 2012 Financial 
Results 
Fourth Quarter Net Revenues Rise 20.6% to $159.5 Million; Full Year
Net Revenues Rise 15.2% to $558.6 Million 
PARSIPPANY, NJ -- (Marketwire) -- 02/20/13 --  The Medicines Company
(NASDAQ: MDCO), a global biopharmaceutical company focused on
advancing the treatment of critical care patients through the
delivery of innovative, cost-effective medicines, today announced
fourth quarter and full year financial results for 2012.  
Financial highlights for the fourth quarter of 2012:  


 
--  Net revenue increased by 20.6% to $159.5 million for the fourth
    quarter of 2012 from $132.2 million in the fourth quarter of 2011.
    --  Angiomax U.S. net revenue increased by 13.7% to $141.2 million in
        the fourth quarter of 2012 compared to $124.2 million in the
        fourth quarter of 2011.
    --  Angiomax/Angiox international net revenue in the fourth quarter of
        2012 increased by 77.2% to $14.0 million compared with $7.9
        million in the fourth quarter of 2011.
--  Net income for the fourth quarter of 2012 was $20.7 million, or $0.38
    per share, compared with net income of $19.6 million, or $0.36 per
    share, for the fourth quarter of 2011.
--  Non-GAAP net income for the fourth quarter of 2012 was $42.9 million,
    or $0.78 per share, compared to non-GAAP net income of $28.7 million,
    or $0.52 per share for the fourth quarter 2011. Non-GAAP net income
    excludes stock-based compensation expense, non-cash interest expense
    and non-cash income taxes.

  
Financial highlights for the full year 2012:  


 
--  Net revenue increased by 15.2% to $558.6 million for 2012 from $484.7
    million in 2011.
    --  Angiomax U.S. net revenue increased by 10.9% to $501.7 million in
        2012 compared with $452.3 million in 2011.
    --  Angiomax/Angiox international net revenue in 2012 increased by
        47.4% to $46.5 million compared with $31.6 million in 2011.
--  Net income for 2012 was $51.3 million, or $0.93 per share, compared
    with net income of $127.9 million, or $2.35 per share, for 2011.
--  Non-GAAP net income for 2012 was $105.6 million, or $1.91 per share,
    compared with non-GAAP net income of $85.7 million, or $1.57 per share
    for 2011. Non-GAAP net income excludes stock-based compensation
    expense, non-cash interest expense and non-cash income taxes.

  
Glenn Sblendorio, President and Chief Financial Officer, stated, "In
2012, global revenue growth was driven by rapid year on year
percentage growth in Europe and continued growth in the United
States. Since 2010, we have been realizing the operating leverage we
anticipated. Our Phase 3 R&D projects have produced positive results
recently and we look forward to the oritavancin Phase 3 SOLO-2 trial
completion and preparing for worldwide regulatory filings for
cangrelor." 
There will be a conference call with management today at 8:30 a.m.
Eastern Time to discuss fourth quarter and full year 2012 financial
results, operational developments and 2013 financial 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. A guidance worksheet will be posted to
the front page of The Medicines Company's website. 
The dial in information is listed below:
 Domestic Dial In: 800 688
0836
 International Dial In: 617 614 4072
 Passcode for both dial in
numbers: 77632519 
Replay is available from 10:30 a.m. Eastern Time following the
conference call through March 6, 2013. To hear a replay of the call
dial 888 286 8010 (domestic) and 617 801 6888 (international).
Passcode for both dial in numbers is 15572588. 
About The Medicines Company
 The Medicines Company (NASDAQ: MDCO)
provides medical solutions to improve health outcomes for patients in
acute and intensive care hospitals worldwide. These solutions
comprise medicines and knowledge that directly impact the survival
and well being of critically ill patients. The Medicines Company's
website is 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, including the Company's preliminary revenue
results, 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 ability to develop its global operations and penetrate
foreign markets, 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 will receive
approvals from regulatory agencies on a timely basis or at all,
whether physicians, patients and other key decision makers will
accept clinical trial results, risks associated with the
establishment of international operations, whether the Company is
able to obtain or maintain patent protection for the intellectual
property relating to the Company's products; 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 9, 2012, which are incorporated herein by
reference. The Company specifically disclaims any obligation to
update these forward-looking statements.  


 
                                                                            
                           The Medicines Company                            
              Condensed Consolidated Statements of Operations               
                                                                            
                                                        Three months ended  
(in thousands, except per share data)                      December 31,     
                                                       -------------------- 
                                                          2012       2011   
                                                       ---------  --------- 
                                                                            
Net revenue                                            $ 159,490  $ 132,231 
Operating expenses:                                                         
  Cost of revenue                                         52,228     44,007 
  Research and development                                26,147     33,302 
  Selling, general and administrative                     44,704     34,916 
                                                       ---------  --------- 
    Total operating expenses                             123,079    112,225 
                                                       ---------  --------- 
                                                                            
Income from operations                                    36,411     20,006 
  Co-promotion income                                      3,750          - 
  Interest expense                                        (3,616)         - 
  Other income                                               177        340 
                                                       ---------  --------- 
                                                                            
Income before income taxes                                36,722     20,346 
Provision for income taxes                               (16,141)      (764)
                                                       ---------  --------- 
                                                                            
Net income                                                20,581     19,582 
Net loss attributable to non-controlling interest             82          - 
                                                       ---------  --------- 
Net income attributable to The Medicines Company       $  20,663  $  19,582 
                                                       =========  ========= 
                                                                            
Basic earnings per common share attributable to The                         
 Medicines Company                                     $    0.39  $    0.36 
                                                       =========  ========= 
Shares used in computing basic earnings per common                          
 share                                                    53,221     53,739 
                                                       =========  ========= 
                                                                            
Diluted earnings per common share attributable to The                       
 Medicines Company                                     $    0.38  $    0.36 
                                                       =========  ========= 
Shares used in computing diluted earnings per common                        
 share                                                    55,022     54,899 
                                                       =========  ========= 
                                                                            
                                                                            
                            The Medicines Company                           
               Condensed Consolidated Statements of Operations              
                                                                            
                                                                            
                                                            Year to Date    
(in thousands, except per share data)                       December 31,    
                                                        --------------------
                                                           2012       2011  
                                                        ---------  ---------
Net revenue                                             $ 558,588  $ 484,732
Operating expenses:                                                         
  Cost of revenue                                         177,339    156,866
  Research and development                                126,423    110,180
  Selling, general and administrative                     171,753    159,617
                                                        ---------  ---------
    Total operating expenses                              475,515    426,663
                                                        ---------  ---------
                                                                            
Income from operations                                     83,073     58,069
  Legal settlement                                              -     17,984
  Co-promotion income                                      10,000          -
  Interest expense                                         (8,005)         -
  Other income                                              1,140      1,790
                                                        ---------  ---------
Income before income taxes                                 86,208     77,843
(Provision) benefit for income taxes                      (35,038)    50,034
                                                        ---------  ---------
Net income                                                 51,170    127,877
Net loss attributable to non-controlling interest              84          -
                                                        ---------  ---------
Net income attributable to The Medicines Company        $  51,254  $ 127,877
                                                        =========  =========
                                                                            
Basic earnings per common share attributable to The                         
 Medicines Company                                      $    0.96  $    2.39
                                                        =========  =========
Shares used in computing basic earnings per common                          
 share                                                     53,545     53,496
                                                        =========  =========
                                                                            
Diluted earnings per common share attributable to The                       
 Medicines Company                                      $    0.93  $    2.35
                                                        =========  =========
Shares used in computing diluted earnings per common                        
 share                                                     55,346     54,407
                                                        =========  =========
                                                                            
                                                                            
                            The Medicines Company                           
                    Condensed Consolidated Balance Sheets                   
                                                                            
                                                                            
                                                   December 31, December 31,
(in thousands)                                         2012         2011    
                                                   ------------ ------------
                                                                            
                      ASSETS                                                
Cash, cash equivalents and available for sales                              
 securities                                        $    570,321 $    340,512
Accrued interest receivable                                 348          374
Accounts receivable, net                                 85,893       74,559
Inventory                                                76,355       45,145
Deferred tax assets                                      13,881        9,395
Prepaid expenses and other current assets                 9,577       11,7
38
                                                   ------------ ------------
  Total current assets                                  756,375      481,723
                                                                            
Fixed assets, net                                        16,100       17,979
Intangible assets, net                                  119,576       87,329
Restricted cash                                           1,571        4,714
Deferred tax assets                                      46,625       78,441
Goodwill                                                 14,671       14,671
Other assets                                             17,264        7,790
                                                   ------------ ------------
  Total assets                                     $    972,182 $    692,647
                                                   ============ ============
                                                                            
       LIABILITIES AND STOCKHOLDERS' EQUITY                                 
Current liabilities                                $    135,206 $    154,635
Contingent purchase price                                18,971       20,431
Convertible senior notes (due 2017)                     226,109            -
Other Long Term Liabilities                               5,674        5,939
Stockholders' equity                                    586,222      511,642
                                                   ------------ ------------
  Total liabilities and stockholders' equity       $    972,182 $    692,647
                                                   ============ ============
                                                                            
                                                                            
                           The Medicines Company                            
                Reconciliation of GAAP to non-GAAP Measures                 
                                (unaudited)                                 
                                                                            
                                     Three months ended     Year to Date    
                                        December 31,        December 31,    
                                    ------------------- ------------------- 
EARNINGS PER SHARE                     2012      2011      2012      2011   
                                    --------- --------- --------- --------- 
                                                                            
GAAP earnings per share - Diluted   $    0.38 $    0.36 $    0.93 $    2.35 
 Adjustments to net income                                                  
  attributable to The Medicines                                             
  Company (as detailed below)            0.40      0.17      0.98     (0.78)
                                    --------- --------- --------- --------- 
Non-GAAP earnings per share -                                               
 Diluted                            $    0.78 $    0.52 $    1.91 $    1.57 
                                    ========= ========= ========= ========= 
                                                                            
                                                                            
An itemized reconciliation between net income attributable to The Medicines 
Company on a GAAP basis and net income attributable to The Medicines        
Company on a non-GAAP basis is as follows:                                  
                                                                            
                                                                            
                                     Three months ended     Year to Date    
(in thousands)                          December 31,        December 31,    
                                    ------------------- ------------------- 
                                       2012      2011      2012      2011   
                                    --------- --------- --------- --------- 
                                                                            
GAAP net income attributable to The                                         
 Medicines Company                  $  20,663 $  19,582 $  51,254 $ 127,877 
  Adjustments:                                                              
    Cost of revenue: Stock-based                                            
     compensation expense                  49        27       176       125 
    Research and development:                                               
     Stock-based compensation                                               
     expense                              539       385     2,265     1,870 
    Selling, general and                                                    
     administrative: Stock-based                                            
     compensation expense               3,258 
    2,230    12,537     9,022 
    Non-cash interest expense           2,671         -     5,904         - 
    Non-cash tax provision             15,747     6,507    33,493   (53,236)
                                    --------- --------- --------- --------- 
Non-GAAP net income attributable to                                         
 The Medicines Company              $  42,927 $  28,731 $ 105,629 $  85,658 
                                    ========= ========= ========= ========= 
                                                                            
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 non-cash    
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.       

  
Contact:
Michael Mitchell
The Medicines Company
973-290-6097
investor.relations@themedco.com