Press Release (Q2 2011)

PARSIPPANY, NJ, July 27, 2011 - The Medicines Company (NASDAQ: MDCO), a global pharmaceutical company focused on advancing the treatment of critical care patients through the delivery of innovative, cost-effective medicines, today announced results for the second quarter and first half of 2011. Highlights include:

R&D portfolio highlights for the second quarter included positive Phase IIa clinical trial results from MDCO-2010 in cardiac surgery patients and pre-clinical results from key mode-of-action and toxicology studies for MDCO-216. Detailed data from these Phase IIa and preclinical studies are expected to be presented at major medical meetings in the fourth quarter of 2011. The Company also continued enrollment in Phase III trials of oritavancin and cangrelor. For cangrelor, the BRIDGE trial studying a prolonged infusion was completed with data also expected to be presented in 4Q 2011.

Clive Meanwell, Chairman and Chief Executive Officer stated, “Second quarter and first half year 2011 results reaffirm our ability to execute our strategy of growing net revenue, investing aggressively in our R&D portfolio; and making stepwise investments to extend our geographic reach while still generating significant positive cash flow. Our second quarter and first half year 2011 results evidence real growth consistent with our short and medium-term goals. Looking ahead, we expect continued revenue growth led by Angiomax® | Angiox® (bivalirudin) for years to come, and robust progress in R&D and geographic reach”.

Dr. Meanwell added, “We were very excited by multiple R&D developments in the second quarter that show the vibrancy and longer term commercial promise of our R&D programs - all of which are expected to generate products which serve the same customer channel we are building for Angiomax and Cleviprex - namely, acute and intensive care hospitals worldwide. We expect continuous news flow because of the breadth and depth of our technologies.”



(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 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, 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 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 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, 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, May 10, 2011, 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 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


•	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.


•	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.