For U.S. Audiences Only: The Medicines Company Reports Full Year and Fourth Quarter 2009 Financial Results

17 Feb 2010
Revenue Growth Driven by Angiomax(R) (bivalirudin) Market Share Gains Product Portfolio Expanded From Existing Cash Flow
PARSIPPANY, NJ, Feb 17, 2010 (MARKETWIRE via COMTEX) -- The Medicines Company (NASDAQ: MDCO) today announced its financial results for the full year and the fourth quarter of 2009.

Financial highlights for the full year of 2009:

--  Net revenue increased by $56 million or 16.1% to $404.2 million for
    2009 from $348.2 million in 2008.
    --  Angiomax U.S. sales increased by 14.6% to $382.9 million in 2009
        compared to $334.2 million in 2008.
    --  Angiomax/Angiox international net revenue in 2009 increased by
        34.6% to $18.3 million compared to $13.6 million in 2008.
    --  Cleviprex(R) (clevidipine butyrate) has now been accepted by more
        than 425 hospital formularies and has been purchased by 454
        hospitals in the United States. Net revenue in the first full
        commercial year of 2009 was $3.0 million.
--  Net loss for 2009 was ($76.2) million, or ($1.46) per share, compared
    to a net loss of ($8.5) million, or ($0.16) per share, for 2008.  This
    loss was driven mainly by four items totaling $90.5 million: 1) the
    Company's decision to fully reserve against its deferred tax assets
    ($48.1 million), 2) the acquisition of ApoA-1 Milano asset
    ($17.5 million), 3) milestone payments, license payments, and other
    costs, for three products (totaling $21.3 million), and 4) charges
    related to the Cleviprex recall ($3.6 million).
--  Non-GAAP net loss for 2009 was ($4.8 million), or ($0.09) per share,
    compared to non-GAAP net income of $37.2 million, or $0.72 per share
    for 2008.  Non-GAAP net income excludes costs associated with the
    Targanta acquisition, stock-based compensation expense and non-cash
    income taxes.

Clive Meanwell, Chairman and Chief Executive Officer, stated, "In 2009 we added oritavancin, argatroban and ApoA-1 Milano to create a sector-leading portfolio in intensive and critical care that is diversified by stage and indication. These assets were financed by existing cash flow. In addition, we were able to grow Angiomax/Angiox market share and revenues in a hospital PCI market that was significantly depressed by the global economic crisis."

Financial highlights for the fourth quarter of 2009:

--  Net revenue increased by 8.7% to $ 102.1 million for the fourth quarter
    of 2009 from $ 93.9 million in the fourth quarter of 2008.
    --  Angiomax U.S. sales increased by 9.6% to $96.3 million in the
        fourth quarter of 2009 compared to $87.9 million in the fourth
        quarter of 2008.
    --  Angiomax/Angiox international net revenue in the fourth quarter of
        2009 decreased by 7.1% to $5.2 million compared to $5.6 million in
        the fourth quarter of 2008.
    --  Cleviprex U.S. sales in the fourth quarter of 2009 amounted to
        $ 0.6 million.
--  Net loss for the fourth quarter of 2009 was ($73.5) million, or ($1.40)
    per share, compared to a net loss of ($4.2) million, or ($0.08) per
    share, for the fourth quarter of 2008. This loss was driven mainly by
    four items totaling $79.0 million: 1) the Company's decision to fully
    reserve against its deferred tax assets ($43.6 million), 2) the
    acquisition of ApoA-1 Milano asset ($17.5 million), 3) milestone
    payments, license payments, and other costs for three products
    (totaling $14.3 million), and 4) charges related to the Cleviprex
    recall ($3.6 million).
--  Non-GAAP net loss for the fourth quarter of 2009 was ($25.6 million),
    or ($0.49) per share, compared to non-GAAP net income of $ 1.8 million,
    or $ 0.03 per share for the fourth quarter of 2008.  Non-GAAP net
    income excludes costs associated with the Targanta acquisition,
    stock-based compensation expense and non-cash income taxes.

The following table provides reconciliations between GAAP and non-GAAP net (loss) income for the full year (FY) and fourth quarter (Q4) of 2009 and 2008. Non-GAAP net income excludes the transaction charges related to the Targanta and Curacyte acquisitions, stock-based compensation expense and non-cash income taxes:

                                           FAS 123R
                                           Stock-     Non-cash
             Reported  Targanta  Curacyte  Based     Provision    Non-GAAP
             GAAP Net   Acqui-   Acqui-    Compen-   (Benefit)   Net (Loss)
              (Loss)    sition   sition    sation    for Income    Income
(in millions) Income    Costs     Costs    Expense     Taxes        (1)
             --------  --------- --------- --------- ----------  ---------
FY 2009      ($  76.2) $     4.3         - $    19.4 $     47.7  ($    4.8)
FY 2008      ($   8.5)         - $    13.2 $    22.8 $      9.7   $   37.2
Q4 2009      ($  73.5)         -         - $     4.1 $     43.8  ($   25.6)
Q4 2008      ($   4.2)         -         - $     5.4 $      0.6   $    1.8

Note: Amounts may not sum due to rounding.

(1) Excluding the Targanta acquisition costs, Curacyte Discovery acquistion costs, stock-based compensation expense and the non-cash provision (benefit) for income taxes.

Reconciliations between GAAP and non-GAAP fully diluted (loss) earnings per share (EPS) for the full year (FY) and fourth quarter (Q4) of 2009 and 2008 are provided in the following table:

                                              FAS 123R
                                              Stock-    Non-Cash
                      Targenta                based     Provision
                      Acquisi-   Curacyte     Compen-   (Benefit)    Non-
            Reported  tion       Acquisition  sation    for Income   GAAP
(per share) GAAP EPS  Costs      Costs        Expense   Taxes        EPS(1)
            --------  ---------  -----------  --------  ----------   -----
FY 2009    ($   1.46) $    0.08            -  $   0.37 $      0.91  ($0.09)
FY 2008    ($   0.16)         -  $      0.25  $   0.44 $      0.19   $0.72
Q4 2009    ($   1.40)         -            -  $   0.08 $      0.84  ($0.49)
Q4 2008    ($   0.08)         -            -  $   0.10 $      0.01   $0.03

Note: Amounts may not sum due to rounding.

(1) Excluding the Targanta acquisition costs, Curacyte Discovery acquistion costs, stock-based compensation expense and the non-cash provision (benefit) 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 transaction charges associated with the Targanta acquisition, 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. 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 a.m. Eastern Time to discuss full year and fourth quarter 2009 financial results and operational developments. The conference call will be available via phone and webcast. The webcast can be accessed at The Medicines Company website at www.themedicinescompany.com.

The dial in information is listed below:

Domestic Dial In                        800.599.9829
International Dial In:                  617.847.8703
Passcode for both dial in numbers:      95981334

Replay is available from 11:30 a.m. Eastern Time following the conference call through February 24, 2010. To hear a replay of the call, dial 888-286-8010 (domestic) and 617-801-6888 (international). Passcode for both dial in numbers is 99158077.

About The Medicines Company

The Medicines Company (NASDAQ: MDCO) is focused on advancing the treatment of critical care patients through the delivery of innovative, cost-effective medicines to the worldwide hospital marketplace. The Company markets Angiomax(R) (bivalirudin) in the United States and other countries for use in patients undergoing coronary angioplasty, and Cleviprex(R) (clevidipine butyrate) injectable emulsion in the United States for the reduction of blood pressure when oral therapy is not feasible or not desirable. The 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, 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, 2009, 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
                              (unaudited)
(in thousands, except per share data)     Three months ended December 31,
                                          --------------------------------
                                                2009             2008
                                          ---------------  ---------------
Net revenue                               $       102,060  $        93,873
Operating expenses:
  Cost of revenue                                  31,190           25,234
  Research and development                         48,925           23,202
  Selling, general and administrative              46,969           47,900
                                          ---------------  ---------------
    Total operating expenses                      127,084           96,336
                                          ---------------  ---------------
Income (loss) from operations                     (25,024)          (2,463)
Other income (loss)                                (4,873)             (22)
                                          ---------------  ---------------
Income (loss) before income taxes                 (29,897)          (2,485)
Provision for income taxes                        (43,597)          (1,713)
                                          ---------------  ---------------
Net income (loss)                         $       (73,494) $        (4,198)
                                          ===============  ===============
Basic earnings (loss) per common share    $         (1.40) $         (0.08)
                                          ===============  ===============
Shares used in computing basic earnings
 (loss) per common share                           52,395           52,089
                                          ===============  ===============
Diluted earnings (loss) per common share  $         (1.40) $         (0.08)
                                          ===============  ===============
Shares used in computing diluted earnings
 (loss) per common share                           52,395           52,089
                                          ===============  ===============

                          The Medicines Company
              Condensed Consolidated Statements of Operations
                                (unaudited)
(in thousands, except per share data)         Year to Date December 31,
                                          --------------------------------
                                                2009             2008
                                          ---------------  ---------------
Net revenue                               $       404,241  $       348,157
Operating expenses:
  Cost of revenue                                 118,148           88,355
  Research and development                        117,610          105,720
  Selling, general and administrative             193,832          164,903
                                          ---------------  ---------------
    Total operating expenses                      429,590          358,978
                                          ---------------  ---------------
Income (loss) from operations                     (25,349)         (10,821)
Other income (loss)                                (2,818)           5,235
                                          ---------------  ---------------
Income (loss) before income taxes                 (28,167)          (5,586)
Provision for income taxes                        (48,062)          (2,918)
                                          ---------------  ---------------
Net income (loss)                         $       (76,229) $        (8,504)
Basic earnings (loss) per common share    $         (1.46) $         (0.16)
                                          ===============  ===============
Shares used in computing basic earnings
 (loss) per common share                           52,269           51,904
                                          ===============  ===============
Diluted earnings (loss) per common share  $         (1.46) $         (0.16)
                                          ===============  ===============
Shares used in computing diluted earnings
 (loss) per common share                           52,269           51,904
                                          ===============  ===============

                          The Medicines Company
                  Condensed Consolidated Balance Sheets
                                                  December 31, December 31,
(in thousands)                                        2009         2008
                                                  ------------ ------------
                  ASSETS
Cash, cash equivalents and available for sales
 securities                                       $    176,191 $    216,206
Accrued interest receivable                                922        1,336
Accounts receivable, net                                29,789       33,657
Inventory                                               25,836       28,229
Prepaid expenses and other current assets                9,984       16,402
                                                  ------------ ------------
    Total current assets                               242,722      295,830
                                                  ------------ ------------
Fixed assets, net                                       25,072       27,331
Intangible assets, net                                  15,178       16,349
Restricted cash                                          7,049        5,000
Deferred tax assets                                          -       37,657
In Process Research & Development                       69,500            -
Goodwill                                                14,934            -
Other assets                                               321        5,237
                                                  ------------ ------------
    Total assets                                  $    374,776 $    387,404
                                                  ============ ============
      LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                               $     86,619 $     83,608
  Contingent purchase price                             23,667            -
  Other Long Term Liabilities                           24,101        5,771
Stockholders' equity                                   240,389      298,025
                                                  ------------ ------------
    Total liabilities and stockholders' equity    $    374,776 $    387,404
                                                  ============ ============

The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)
                              Three Months Ended December 31,
                  --------------------------------------------------------
                    2009
                  --------------------------------------------------------
                   GAAP(1)    Targanta    SFAS       Non-cash   Non-GAAP(5)
                             Acquisition  123R          Tax     As Adjusted
                                                     Provision
                  ---------  ------------------      ---------------------
Net  revenue      $ 102,060  $     -     $    -      $     -     $ 102,060
Operating
 expenses:
Cost of revenue      31,190        -       (187) (3)       -        31,003
Research and
 development         48,925                (672) (3)       -        48,253
Selling, general
 and
 administrative      46,969        - (2) (3,250) (3)       -        43,719
                  ---------  -------     ------      -------     ---------
Total operating
 expenses           127,084        -     (4,109)           -       122,975
(Loss) income
 from operations    (25,024)       -      4,109            -       (20,915)
Other
 (loss)/income       (4,873)       -          -            -        (4,873)
                  ---------  -------     ------      -------     ---------
(Loss) income
 before income
 taxes              (29,897)       -      4,109            -       (25,788)
Benefit
 (Provision) for
 income taxes       (43,597)       - (2)      -       43,764 (4)       167
                  ---------  -------     ------      -------     ---------
Net (loss) income   (73,494)       -      4,109       43,764       (25,621)
Basic (loss)
 earnings per
 common share     $   (1.40) $     -     $ 0.08      $  0.84     $   (0.49)
                  =========  =======     ======      =======     =========
Shares used in
 computing basic
 earnings (loss)
 per common share    52,395   52,395     52,395       52,395        52,395
                  =========  =======     ======      =======     =========
Diluted (loss)
 earnings per
 common share     $   (1.40) $     -     $ 0.08      $  0.84     $   (0.49)
                  =========  =======     ======      =======     =========
Shares used in
 computing
 diluted (loss)
 earnings per
 common share        52,395   52,395     52,395       52,395        52,395
                  =========  =======     ======      =======     =========
(1) GAAP Results
(2) Targanta Acquisition
(3) Non-cash stock compensation expense
(4) Non-cash income taxes
(5) Non-GAAP Results

The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)
(Unaudited)
                             Twelve Months Ended December 31,
                ----------------------------------------------------------
                  2009
                ----------------------------------------------------------
                 GAAP(1)   Targanta     SFAS          Non-cash  Non-GAAP(5)
                   As      Acquisition  123R            Tax     As Adjusted
                Reported                             Provision
                -------------------------------      ---------------------
Net  revenue    $ 404,241  $    -      $      -      $     -     $ 404,241
Costs and
 expenses:
Cost of revenue   118,148       -          (884) (3)       -       117,264
Research and
 development      117,610                (3,438) (3)       -       114,172
Selling,
 general and
 administrative   193,832  (4,281) (2)  (15,115) (3)       -       174,436
                ---------  ------      --------      -------     ---------
Total operating
 expenses         429,590  (4,281)      (19,437)           -       405,872
Income (loss)
 from
 operations       (25,349)  4,281        19,437            -        (1,631)
Other
 (loss)/income     (2,818)      -             -            -        (2,818)
                ---------  ------      --------      -------     ---------
Income before
 income taxes     (28,167)  4,281        19,437            -        (4,449)
(Provision)
 benefit for
 income taxes     (48,062)         (2)        -       47,736 (4)      (326)
                ---------  ------      --------      -------     ---------
Net income
 (loss)           (76,229)  4,281        19,437       47,736        (4,775)
Basic (loss)
 earnings per
 common share   $   (1.46) $ 0.08      $   0.37      $  0.91     $   (0.09)
                =========  ======      ========      =======     =========
Shares used in
 computing
 basic earnings
 (loss) per
 common share      52,269  52,269        52,269       52,269        52,269
                =========  ======      ========      =======     =========
Diluted
 earnings per
 common share   $   (1.46) $ 0.08      $   0.37      $  0.91     $   (0.09)
                =========  ======      ========      =======     =========
Shares used in
 computing
 diluted
 earnings
 (loss) per
 common share      52,269  52,269        52,269       52,269        52,269
                =========  ======      ========      =======     =========
(1) GAAP Results
(2) Targanta Acquisition
(3) Non-cash stock compensation expense
(4) Non-cash income taxes
(5) Non-GAAP Results

Contact:
Michael Mitchell
The Medicines Company
973-290-6000
investor.relations@themedco.com


SOURCE: The Medicines Company

mailto:investor.relations@themedco.com