Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MEDICINES CO /DE | form8-kq42012.htm |
Exhibit 99.1
Contact: Michael Mitchell
The Medicines Company
973-290-6097
investor.relations@themedco.com
FOR IMMEDIATE RELEASE:
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, February 20, 2013 - 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. |
Page 1 of 6
• | 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.
Page 2 of 6
The Medicines Company | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(in thousands, except per share data) | Three months ended 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 | ||||||
Page 3 of 6
The Medicines Company | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(in thousands, except per share data) | Year Ended 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 | ||||||
Page 4 of 6
The Medicines Company | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | December 31, | December 31, | ||||||
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 | 11,738 | ||||||
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 | ||||
Page 5 of 6
The following table provides reconciliations between GAAP and non-GAAP net income for the fourth quarter (Q4) and years ended December 31, 2012 and 2011. Non-GAAP net income excludes the transaction charges related to stock-based compensation expense, non-cash interest expense and non-cash income taxes:
The Medicines Company | ||||||||||||||||
Reconciliation of GAAP to non-GAAP Measures | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three months ended December 31, | Year Ended 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 December 31, | Year Ended December 31, | |||||||||||||||
(in thousands) | 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.
Page 6 of 6