The Medicines Company |
(Exact Name of Registrant as Specified in Charter) |
Delaware | 000-31191 | 04-3324394 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
8 Sylvan Way Parsippany, New Jersey | 07054 | |
(Address of Principal Executive Offices) | (Zip Code) |
(Former Name or Former Address, if Changed Since Last Report) |
Exhibit No. | Description |
99.1 | Press release dated July 27, 2011 |
• | A 9% increase in net revenues in the second quarter of 2011 to $119.6 million from $110.1 million in the comparable 2010 period. |
• | Increased investments in R&D as Phase III trials for cangrelor and oritavancin accelerated |
• | As a result, net income for the second quarter of 2011 was $11.4 million, or $0.21 per share, compared with net income of $15.4 million, or $0.29 per share, for the second quarter of 2010; net income for the first half of 2011 was $35.7 million, or $0.66 per share, compared with net income of $24.9 million, or $0.47 per share, for the first half of 2010. |
• | Net revenue increased by 9% to $119.6 million for the second quarter of 2011 from $110.1 million in the |
◦ | Angiomax U.S. sales increased by 7% to $112.0 million in the second quarter of 2011 compared with $104.4 million in the second quarter of 2010. |
◦ | Angiomax/Angiox international net revenue in the second quarter of 2011 increased by 27% to $7.3 million compared with $5.8 million in the second quarter of 2010. |
• | Net income for the second quarter of 2011 was $11.4 million, or $0.21 per share, compared with net income of $15.4 million, or $0.29 per share, for the second quarter of 2010. |
• | Non-GAAP net income for the second quarter of 2011 was $13.2 million, or $0.24 per share, compared with non-GAAP net income of $18.3 million, or $0.35 per share for the second quarter 2010. Non-GAAP net income excludes stock-based compensation expense and non-cash income taxes. |
• | Net revenue increased by 9% to $231.7 million for the first half of 2011 from $212.2 million in the first half of 2010. |
◦ | Angiomax U.S. sales increased by 8% to $217.0 million in the first half of 2011 compared with $200.0 million in the first half of 2010. |
◦ | Angiomax/Angiox international net revenue in the first half of 2011 increased by 27% to $14.4 million compared with $11.4 million in the first half of 2010. |
• | Net income for the first half of 2011 was $35.7 million, or $0.66 per share, compared with net income of $24.9 million, or $0.47 per share, for the first half of 2010. |
• | Non-GAAP net income for the first half of 2011 was $47.7 million, or $0.88 per share, compared with non-GAAP net income of $30.8 million, or $0.58 per share for the first half of 2010. Non-GAAP net income excludes stock-based compensation expense and non-cash income taxes. |
(in millions) | Reported GAAP Net Income | Stock-Based Compensation Expense | Non-cash (Provision) Benefit for Income Taxes | Non-GAAP Net Income(1) | |
Q2 2011 | $11.4 | $3.2 | $(1.4) | $13.2 | |
Q2 2010 | $15.4 | $2.3 | $0.5 | $18.3 | |
1H 2011 | $35.7 | $5.4 | $6.6 | $47.7 | |
1H 2010 | $24.9 | $5.1 | $0.9 | $30.8 | |
Note: Amounts may not sum due to rounding. (1) Excluding stock-based compensation expense and the non-cash (provision) benefit for income taxes. |
(per share) | Reported GAAP EPS | Stock-Based Compensation Expense | Non-cash (Provision) Benefit for Income Taxes | Non-GAAP EPS (1) | ||
Q2 2011 | $0.21 | $0.06 | $(0.03) | $0.24 | ||
Q2 2010 | $0.29 | $0.04 | $0.01 | $0.35 | ||
1H 2011 | $0.66 | $0.10 | $0.12 | $0.88 | ||
1H 2010 | $0.47 | $0.10 | $0.02 | $0.58 | ||
Note: Amounts may not sum due to rounding. | ||||||
Note: Amounts may not sum due to rounding. (1) Excluding stock-based compensation expense and the non-cash (provision) benefit for income taxes. |
The Medicines Company | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(unaudited) | ||||||||
(in thousands, except per share data) | Three months ended June 30, | |||||||
2011 | 2010 | |||||||
Net revenue | $ | 119,591 | $ | 110,135 | ||||
Operating expenses: | ||||||||
Cost of revenue | 37,830 | 33,568 | ||||||
Research and development | 26,536 | 20,575 | ||||||
Selling, general and administrative | 41,420 | 39,409 | ||||||
Total operating expenses | 105,786 | 93,552 | ||||||
Income from operations | 13,805 | 16,583 | ||||||
Other income (loss) | 61 | (117 | ) | |||||
Income before income taxes | 13,866 | 16,466 | ||||||
Provision for income taxes | (2,426 | ) | (1,040 | ) | ||||
Net income | $ | 11,440 | $ | 15,426 | ||||
Basic earnings per common share | $ | 0.21 | $ | 0.29 | ||||
Shares used in computing basic earnings per common share | 53,441 | 52,819 | ||||||
Diluted earnings per common share | $ | 0.21 | $ | 0.29 | ||||
Shares used in computing diluted earnings per common share | 54,314 | 52,924 |
The Medicines Company | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(unaudited) | ||||||||
(in thousands, except per share data) | Year to Date June 30, | |||||||
2011 | 2010 | |||||||
Net revenue | $ | 231,728 | $ | 212,223 | ||||
Operating expenses: | ||||||||
Cost of revenue | 73,400 | 62,337 | ||||||
Research and development | 50,328 | 37,452 | ||||||
Selling, general and administrative | 79,348 | 85,530 | ||||||
Total operating expenses | 203,076 | 185,319 | ||||||
Income from operations | 28,652 | 26,904 | ||||||
Legal settlement | 17,984 | — | ||||||
Other income (loss) | 872 | (428 | ) | |||||
Income before income taxes | 47,508 | 26,476 | ||||||
Provision for income taxes | (11,827 | ) | (1,618 | ) | ||||
Net income | $ | 35,681 | $ | 24,858 | ||||
Basic earnings per common share | $ | 0.67 | $ | 0.47 | ||||
Shares used in computing basic earnings per common share | 53,343 | 52,658 | ||||||
Diluted earnings per common share | $ | 0.66 | $ | 0.47 | ||||
Shares used in computing diluted earnings per common share | 54,223 | 52,823 |
The Medicines Company | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | June 30, | December 31, | ||||||
2011 | 2010 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Cash, cash equivalents and available for sales securities | $ | 283,629 | $ | 246,644 | ||||
Accrued interest receivable | 895 | 1,279 | ||||||
Accounts receivable, net | 67,008 | 46,551 | ||||||
Inventory | 29,161 | 25,343 | ||||||
Prepaid expenses and other current assets | 8,908 | 4,804 | ||||||
Total current assets | 389,601 | 324,621 | ||||||
Fixed assets, net | 19,298 | 20,662 | ||||||
Intangible assets, net | 81,740 | 82,925 | ||||||
Restricted cash | 5,783 | 5,778 | ||||||
Deferred tax assets | 27,286 | 25,197 | ||||||
Goodwill | 14,671 | 14,671 | ||||||
Other assets | 296 | 270 | ||||||
Total assets | $ | 538,675 | $ | 474,124 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | $ | 103,841 | $ | 85,370 | ||||
Contingent purchase price | 27,416 | 25,387 | ||||||
Other long term liabilities | 5,854 | 5,769 | ||||||
Stockholders' equity | 401,564 | 357,598 | ||||||
Total liabilities and stockholders' equity | $ | 538,675 | $ | 474,124 |
The Medicines Company | |||||||||||||||
Reconciliation of GAAP to non-GAAP Measures | |||||||||||||||
(All amounts in thousands, except per share amounts) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended June 30, | |||||||||||||||
2011 | |||||||||||||||
GAAP(1) | Stock-Based Compensation | Non-cash Tax Provision | Non-GAAP(4) As Adjusted | ||||||||||||
Net revenue | $ | 119,591 | $ | — | $ | — | $ | 119,591 | |||||||
Operating expenses: | |||||||||||||||
Cost of revenue | 37,830 | (35 | ) | (2) | — | 37,795 | |||||||||
Research and development | 26,536 | (531 | ) | (2) | — | 26,005 | |||||||||
Selling, general and administrative | 41,420 | (2,648 | ) | (2) | — | 38,772 | |||||||||
Total operating expenses | 105,786 | (3,214 | ) | — | 102,572 | ||||||||||
Income from operations | 13,805 | 3,214 | — | 17,019 | |||||||||||
Legal settlement | — | — | — | — | |||||||||||
Other income | 61 | — | — | 61 | |||||||||||
Income before income taxes | 13,866 | 3,214 | — | 17,080 | |||||||||||
(Provision for) Benefit from income taxes | (2,426 | ) | — | (1,437 | ) | (3) | (3,863 | ) | |||||||
Net income | $ | 11,440 | $ | 3,214 | $ | (1,437 | ) | $ | 13,217 | ||||||
Basic earnings per common share | $ | 0.21 | $ | 0.06 | $ | (0.03 | ) | $ | 0.25 | ||||||
Shares used in computing basic earnings per common share | 53,441 | 53,441 | 53,441 | 53,441 | |||||||||||
Diluted earnings per common share | $ | 0.21 | $ | 0.06 | $ | (0.03 | ) | $ | 0.24 | ||||||
Shares used in computing diluted earnings per common share | 54,314 | 54,314 | 54,314 | 54,314 | |||||||||||
Note: Amounts may not sum due to rounding | |||||||||||||||
(1) GAAP Results | |||||||||||||||
(2) Non-cash stock compensation expense | |||||||||||||||
(3) Non-cash income taxes | |||||||||||||||
(4) Non-GAAP Results |
The Medicines Company | |||||||||||||||
Reconciliation of GAAP to non-GAAP Measures | |||||||||||||||
(All amounts in thousands, except per share amounts) | |||||||||||||||
(unaudited) | |||||||||||||||
Six Months Ended June 30, | |||||||||||||||
2011 | |||||||||||||||
GAAP(1) | Stock-Based Compensation | Non-cash Tax Provision | Non-GAAP(4) As Adjusted | ||||||||||||
Net revenue | $ | 231,728 | $ | — | $ | — | $ | 231,728 | |||||||
Operating expenses: | |||||||||||||||
Cost of revenue | 73,400 | (78 | ) | (2) | — | 73,322 | |||||||||
Research and development | 50,328 | (959 | ) | (2) | — | 49,369 | |||||||||
Selling, general and administrative | 79,348 | (4,438 | ) | (2) | — | 74,910 | |||||||||
Total operating expenses | 203,076 | (5,475 | ) | — | 197,601 | ||||||||||
Income from operations | 28,652 | 5,475 | — | 34,127 | |||||||||||
Legal settlement | 17,984 | — | — | 17,984 | |||||||||||
Other income | 872 | — | — | 872 | |||||||||||
Income before income taxes | 47,508 | 5,475 | — | 52,983 | |||||||||||
(Provision for) Benefit from income taxes | (11,827 | ) | — | 6,554 | (3) | (5,273 | ) | ||||||||
Net income | $ | 35,681 | $ | 5,475 | $ | 6,554 | $ | 47,710 | |||||||
Basic earnings per common share | $ | 0.67 | $ | 0.10 | $ | 0.12 | $ | 0.89 | |||||||
Shares used in computing basic earnings per common share | 53,343 | 53,343 | 53,343 | 53,343 | |||||||||||
Diluted earnings per common share | $ | 0.66 | $ | 0.10 | $ | 0.12 | $ | 0.88 | |||||||
Shares used in computing diluted earnings per common share | 54,223 | 54,223 | 54,223 | 54,223 | |||||||||||
Note: Amounts may not sum due to rounding | |||||||||||||||
(1) GAAP Results | |||||||||||||||
(2) Non-cash stock compensation expense | |||||||||||||||
(3) Non-cash income taxes | |||||||||||||||
(4) Non-GAAP Results |
The Medicines Company | |||||||||||||||
Reconciliation of GAAP to non-GAAP Measures | |||||||||||||||
(All amounts in thousands, except per share amounts) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended June 30, | |||||||||||||||
2010 | |||||||||||||||
GAAP(1) | Stock-Based Compensation | Non-cash Tax Provision | Non-GAAP(4) As Adjusted | ||||||||||||
Net revenue | $ | 110,135 | $ | — | $ | — | $ | 110,135 | |||||||
Operating expenses: | |||||||||||||||
Cost of revenue | 33,568 | (72 | ) | (2) | — | 33,496 | |||||||||
Research and development | 20,575 | (442 | ) | (2) | — | 20,133 | |||||||||
Selling, general and administrative | 39,409 | (1,823 | ) | (2) | — | 37,586 | |||||||||
Total operating expenses | 93,552 | (2,337 | ) | — | 91,215 | ||||||||||
Income from operations | 16,583 | 2,337 | — | 18,920 | |||||||||||
Other loss | (117 | ) | — | — | (117 | ) | |||||||||
Income before income taxes | 16,466 | 2,337 | — | 18,803 | |||||||||||
(Provision for) benefit for income taxes | (1,040 | ) | — | 531 | (3) | (509 | ) | ||||||||
Net income | $ | 15,426 | $ | 2,337 | $ | 531 | $ | 18,294 | |||||||
Basic earnings per common share | $ | 0.29 | $ | 0.04 | $ | 0.01 | $ | 0.35 | |||||||
Shares used in computing basic earnings per common share | 52,819 | 52,819 | 52,819 | 52,819 | |||||||||||
Diluted earnings per common share | $ | 0.29 | $ | 0.04 | $ | 0.01 | $ | 0.35 | |||||||
Shares used in computing diluted earnings per common share | 52,924 | 52,924 | 52,924 | 52,924 | |||||||||||
Note: Amounts may not sum due to rounding | |||||||||||||||
(1) GAAP Results | |||||||||||||||
(2) Non-cash stock compensation expense | |||||||||||||||
(3) Non-cash income taxes | |||||||||||||||
(4) Non-GAAP Results |
The Medicines Company | |||||||||||||||
Reconciliation of GAAP to non-GAAP Measures | |||||||||||||||
(All amounts in thousands, except per share amounts) | |||||||||||||||
(unaudited) | |||||||||||||||
Six Months Ended June 30, | |||||||||||||||
2010 | |||||||||||||||
GAAP(1) | Stock-Based Compensation | Non-cash Tax Provision | Non-GAAP(4) As Adjusted | ||||||||||||
Net revenue | $ | 212,223 | $ | — | $ | — | $ | 212,223 | |||||||
Operating expenses: | |||||||||||||||
Cost of revenue | 62,337 | (161 | ) | (2) | — | 62,176 | |||||||||
Research and development | 37,452 | (1,238 | ) | (2) | — | 36,214 | |||||||||
Selling, general and administrative | 85,530 | (3,681 | ) | (2) | — | 81,849 | |||||||||
Total operating expenses | 185,319 | (5,080 | ) | — | 180,239 | ||||||||||
Income from operations | 26,904 | 5,080 | — | 31,984 | |||||||||||
Other loss | (428 | ) | — | — | (428 | ) | |||||||||
Income before income taxes | 26,476 | 5,080 | — | 31,556 | |||||||||||
(Provision for) benefit for income taxes | (1,618 | ) | — | 857 | (3) | (761 | ) | ||||||||
Net income | $ | 24,858 | $ | 5,080 | $ | 857 | $ | 30,795 | |||||||
Basic earnings per common share | $ | 0.47 | $ | 0.10 | $ | 0.02 | $ | 0.58 | |||||||
Shares used in computing basic earnings per common share | 52,658 | 52,658 | 52,658 | 52,658 | |||||||||||
Diluted earnings per common share | $ | 0.47 | $ | 0.10 | $ | 0.02 | $ | 0.58 | |||||||
Shares used in computing diluted earnings per common share | 52,823 | 52,823 | 52,823 | 52,823 | |||||||||||
Note: Amounts may not sum due to rounding | |||||||||||||||
(1) GAAP Results | |||||||||||||||
(2) Non-cash stock compensation expense | |||||||||||||||
(3) Non-cash income taxes | |||||||||||||||
(4) Non-GAAP Results |