exv99w1

Exhibit 99.1


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

FOR IMMEDIATE RELEASE:

THE MEDICINES COMPANY REPORTS FOURTH QUARTER REVENUE RISES
17.2% TO $119.7 MILLION

FULL YEAR EPS IS $1.97 PER SHARE VS YEAR AGO LOSS; REVENUES OF $437.6
MILLION VS YEAR AGO $404.2 MILLION

PARSIPPANY, NJ, February 16, 2011 — The Medicines Company (NASDAQ: MDCO) today announced its financial results for the fourth quarter and full year of 2010.

Financial highlights for the fourth quarter of 2010:

•

Net revenue increased by 17.2% to $119.7 million for the fourth quarter of 2010 from $ 102.1 million in the fourth quarter of 2009.

	•		Angiomax U.S. sales increased by 16.3% to $112 million in the fourth quarter of 2010 compared to $96.3 million in the fourth quarter of 2009.

	•		Angiomax/Angiox international net revenue in the fourth quarter of 2010 increased by 48% to $7.7 million compared with $5.2 million in the fourth quarter of 2009.

•

Net income for the fourth quarter of 2010 was $58.6 million, or $1.09 per share, compared with a net loss of ($73.5) million, or ($1.40) per share, for the fourth quarter of 2009.

•

Net income impacted by the company’s decision to reinstate a portion of its deferred tax asset in the amount of $44 million.


•		Non-GAAP net income for the fourth quarter of 2010 was $16.0 million, or $0.30 per share, compared to non-GAAP net loss of ($25.6 million), or ($0.49) per share for 2009. Non-GAAP net income excludes costs associated with the Targanta acquisition, stock-based compensation expense and non-cash income taxes.

Financial highlights for the full year of 2010:

•

Net revenue increased by 8.3% to $437.6 million for 2010 from $404.2 million in 2009.

	•		Angiomax U.S. sales increased by 7.7% to $412.3 million in 2010 compared with $382.9 million in 2009.

	•		Angiomax/Angiox international net revenue in 2010 increased by 34.4% with $24.6 million compared with $18.3 million in 2009.

•

Net income for 2010 was $104.6 million, or $1.97 per share, compared with a net loss of ($76.2) million, or ($1.46) per share, for 2009.

•

Net income impacted by the company’s decision to reinstate a portion of its deferred tax asset in the amount of $44 million.


•		Non-GAAP net income for 2010 was $69.7 million, or $1.31 per share, compared to non-GAAP net loss of ($4.8 million), or ($0.09) per share, for 2009. 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, “This past quarter and past year


The Medicines Company		8 Sylvan Way Parsippany, New Jersey 07054		Tel: (973)290-6000 Fax: (973)656-9898

our main products, Angiomax and Angiox, grew briskly through relentless innovation with our hospital customers. We believe our late-stage pipeline products progressed through perhaps the most efficient and intelligent R&D efforts in this industry. And throughout it all we created — and continue to create — enormous operating leverage to meet our global ambitions.”

The following table provides reconciliations between GAAP and non-GAAP net (loss) income for the full year (FY) and fourth quarter (Q4) of 2010 and 2009. Non-GAAP net income excludes the transaction charges related to the Targanta acquisition, stock-based compensation expense and non-cash income taxes:


								Non-cash
						FAS 123R		(Benefit)
	Reported			Targanta		Stock-Based		Provision for			Non-GAAP
	GAAP Net			Acquisition		Compensation		Income			Net Income
(in millions)	Income			Costs		Expense		Taxes			(1)

FY 2010	$	104.6		$	—	$	8.3	$	(43.3	)	$	69.7

FY 2009	$	(76.2	)	$	4.3	$	19.4	$	47.7		$	(4.8	)

Q4 2010	$	58.6		$	—	$	1.5	$	(44.0	)	$	16.0

Q4 2009	$	(73.5	)	$	—	$	4.1	$	43.8		$	(25.6	)

Note: Amounts may not sum due to rounding.

(1) Excluding the Targanta acquisition 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 FY and Q4 of 2010and 2009 are provided in the following table:


								Non-cash
						FAS 123R		(Benefit)
				Targanta		Stock-Based		Provision
	Reported			Acquisition		Compensation		for Income			Non-GAAP
(per share)	GAAP EPS			Costs		Expense		Taxes			EPS (1)

FY 2010	$	1.97		$	—	$	0.16	$	(0.81	)	$	1.31

FY 2009	$	(1.46	)	$	0.08	$	0.37	$	0.91		$	(0.09	)

Q4 2010	$	1.09		$	—	$	0.03	$	(0.82	)	$	0.30

Q4 2009	$	(1.40	)	$	—	$	0.08	$	0.84		$	(0.49	)

Note: Amounts may not sum due to rounding.


The Medicines Company		8 Sylvan Way Parsippany, New Jersey 07054		Tel: (973)290-6000 Fax: (973)656-9898

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(1) Excluding the Targanta acquisition costs, stock-based compensation expense and the non-cash provision 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 2010 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:		800.561.2601
International Dial In:		617.614.3518
Passcode for both dial in numbers:		37185392

Replay is available from 11:30 a.m. Eastern Time following the conference call through March 2, 2011. To hear a replay of the call dial 888-286-8010 (domestic) and 617-801-6888 (international). Passcode for both dial in numbers is 41479697.

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.


The Medicines Company		8 Sylvan Way Parsippany, New Jersey 07054		Tel: (973)290-6000 Fax: (973)656-9898

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Important factors that may cause or contribute to such differences include 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, 2010, which are incorporated herein by reference. The Company specifically disclaims any obligation to update these forward-looking statements.


The Medicines Company		8 Sylvan Way Parsippany, New Jersey 07054		Tel: (973)290-6000 Fax: (973)656-9898

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The Medicines Company

Condensed Consolidated Statements of Operations

(unaudited)


(in thousands, except per share data)	Three months ended December 31,
	2010			2009

Net revenue	$	119,679		$	102,060

Operating expenses:
Cost of revenue		35,394			31,190
Research and development		31,113			48,925
Selling, general and administrative		37,372			46,969

Total operating expenses		103,879			127,084


Income (loss) from operations		15,800			(25,024	)

Other loss		(322	)		(4,873	)


Income (loss) before income taxes		15,478			(29,897	)
Benefit (provision) for income taxes		43,094			(43,597	)


Net income (loss)	$	58,572		$	(73,494	)


Basic earnings (loss) per common share	$	1.10		$	(1.40	)

Shares used in computing basic earnings (loss) per common share		53,041			52,395


Diluted earnings (loss) per common share	$	1.09		$	(1.40	)

Shares used in computing diluted earnings (loss) per common share		53,714			52,395


The Medicines Company		8 Sylvan Way Parsippany, New Jersey 07054		Tel: (973)290-6000 Fax: (973)656-9898

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The Medicines Company

Condensed Consolidated Statements of Operations

(unaudited)


(in thousands, except per share data)	Year Ended December 31,
	2010			2009

Net revenue	$	437,645		$	404,241
Operating expenses:
Cost of revenue		129,299			118,148
Research and development		85,241			117,610
Selling, general and administrative		158,690			193,832

Total operating expenses		373,230			429,590

Income (loss) from operations		64,415			(25,349	)

Other loss		(267	)		(2,818	)

Income (loss) before income taxes		64,148			(28,167	)
Benefit (provision) for income taxes		40,487			(48,062	)

Net income (loss)	$	104,635		$	(76,229	)

Basic earnings (loss) per common share	$	1.98		$	(1.46	)

Shares used in computing basic earnings (loss) per common share		52,842			52,269


Diluted earnings (loss) per common share	$	1.97		$	(1.46	)

Shares used in computing diluted earnings (loss) per common share		53,184			52,269


The Medicines Company		8 Sylvan Way Parsippany, New Jersey 07054		Tel: (973)290-6000 Fax: (973)656-9898

Page 6 of 9

The Medicines Company

Condensed Consolidated Balance Sheets

(unaudited)


	December 31,		December 31,
(in thousands)	2010		2009

ASSETS
Cash, cash equivalents and available for sales securities	$	246,644	$	176,191
Accrued interest receivable		1,279		922
Accounts receivable, net		46,551		29,789
Inventory		25,343		25,836
Prepaid expenses and other current assets		4,804		9,984

Total current assets		324,621		242,722


Fixed assets, net		20,662		25,072
Intangible assets, net		82,925		84,678
Restricted cash		5,777		7,049
Deferred tax assets		25,197		—

Goodwill		14,671		14,934
Other assets		270		321

Total assets	$	474,124	$	374,776


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities	$	85,370	$	86,619
Contingent purchase price		25,387		23,667
Deferred tax liability		—		18,395
Other long term liabilities		5,769		5,706
Stockholders’ equity		357,598		240,389

Total liabilities and stockholders’ equity	$	474,124	$	374,776


The Medicines Company		8 Sylvan Way Parsippany, New Jersey 07054		Tel: (973)290-6000 Fax: (973)656-9898

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The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(All amounts in thousands, except per share amounts)

(Unaudited)


	Three Months Ended December 31,
	2010
				Targanta						Non-cash			Non-GAAP (5)
	GAAP⁽¹⁾			Acquisition			SFAS 123R			Tax Provision			As Adjusted
Net revenue	$	119,679		$	—		$	—		$	—		$	119,679

Operating expenses:

Cost of revenue		35,394			—			(33	) ⁽³⁾		—			35,361
Research and development		31,113						(231	) ⁽³⁾		—			30,882
Selling, general and administrative		37,372			—	⁽²⁾		(1,217	) ⁽³⁾		—			36,155

Total operating expenses		103,879			—			(1,481	)		—			102,398

Income from operations		15,800			—			1,481			—			17,281

Other loss		(322	)		—			—			—			(322	)

Income before income taxes		15,478			—			1,481			—			16,959
Benefit (provision) for income taxes		43,094			—	⁽²⁾		—			(44,010	) ⁽⁴⁾		(916	)

Net income		58,572			—			1,481			(44,010	)		16,043

Basic earnings per common share	$	1.10		$	—		$	0.03		$	(0.83	)	$	0.30


Shares used in computing basic earnings per common share		53,041			53,041			53,041			53,041			53,041


Diluted earnings per common share	$	1.09		$	—		$	0.03		$	(0.82	)	$	0.30


Shares used in computing diluted earnings per common share		53,714			53,714			53,714			53,714			53,714

⁽¹⁾ GAAP Results

⁽²⁾ Targanta Acquisition

⁽³⁾ Non-cash stock compensation expense

⁽⁴⁾ Non-cash income taxes

⁽⁵⁾ Non-GAAP Results


The Medicines Company		8 Sylvan Way Parsippany, New Jersey 07054		Tel: (973)290-6000 Fax: (973)656-9898

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The Medicines Company
Reconciliation of GAAP to non-GAAP Measures

(All amounts in thousands, except per share amounts)

(Unaudited)


	Twelve Months Ended December 31,
	2010
	GAAP (1)			Targanta						Non-cash			Non-GAAP (5)
	As Reported			Acquisition			SFAS 123R			Tax Provision			As Adjusted
Net revenue	$	437,645		$	—		$	—		$	—		$	437,645
Costs and expenses:
Cost of revenue		129,299			—			(250	) ⁽³⁾		—			129,049
Research and development		85,241						(1,801	) ⁽³⁾		—			83,440
Selling, general and administrative		158,690			—	⁽²⁾		(6,285	) ⁽³⁾		—			152,405

Total operating expenses		373,230			—			(8,336	)		—			364,894
Income from operations		64,415			—			8,336			—			72,751
Other loss		(267	)		—			—			—			(267	)

Income before income taxes		64,148			—			8,336			—			72,484
Benefit (provision) for income taxes		40,487				⁽²⁾		—			(43,300	) ⁽⁴⁾		(2,813	)

Net income		104,635			—			8,336			(43,300	)		69,671
Basic earnings per common share	$	1.98		$	—		$	0.16		$	(0.82	)	$	1.32

Shares used in computing basic		52,842			52,842			52,842			52,842			52,842
earnings per common share

Diluted earnings per common share	$	1.97		$	—		$	0.16		$	(0.81	)	$	1.31

Shares used in computing diluted		53,184			53,184			53,184			53,184			53,184
earnings per common share

⁽¹⁾ GAAP Results

⁽²⁾ Targanta Acquisition

⁽³⁾ Non-cash stock compensation expense

⁽⁴⁾ Non-cash income taxes

⁽⁵⁾ Non-GAAP Results


The Medicines Company		8 Sylvan Way Parsippany, New Jersey 07054		Tel: (973)290-6000 Fax: (973)656-9898

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