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) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press release dated October 26, 2011 |
Exhibit No. | Description |
99.1 | Press release dated October 26, 2011 |
• | A 14% increase in net revenues in the third quarter of 2011 to $120.8 million from $105.7 million in the comparable 2010 period. |
• | The Company reinstated approximately $66 million of deferred tax assets during the quarter, as the Company expects sustained profits on an ongoing basis. Net income for the third quarter of 2011 was $72.6 million, or $1.34 per share, compared with net income of $21.2 million, or $0.40 per share, for the third quarter of 2010. |
• | The Company increased its cash and available for sale securities balance by $24 million during the quarter, bringing its cash balance to $308 million at September 30, 2011, compared with $284 million at June 30, 2011. |
• | During the quarter, the Company settled lawsuits it had filed in the U.S. District Court for the District of Delaware relating to the Abbreviated New Drug Applications (ANDAs) filed by Teva Parenteral Medicines, Inc. and its affiliate, Pliva Hrvatska d.o.o., for generic versions of Angiomax® (bivalirudin for injection). |
• | Cangrelor: BRIDGE trial studying a prolonged infusion |
• | Angiomax: BRAVO program, first data of Angiomax use in structural heart disease |
• | MDCO-216: pre-clinical results from key mode-of-action and toxicology studies |
• | Net revenue increased by 14% to $120.8 million for the third quarter of 2011 from $105.7 million in the third quarter of 2010. |
◦ | Angiomax U.S. sales increased by 11% to $111.1 million in the third quarter of 2011 compared with |
◦ | Angiomax/Angiox international net revenue in the third quarter of 2011 increased by 67% to $9.2 million compared with $5.5 million in the third quarter of 2010. |
• | Net revenue increased by 11% to $352.5 million for the first nine months of 2011 from $318.0 million for same period of 2010. |
◦ | Angiomax U.S. sales increased by 9% to $328.1 million in the first nine months of 2011 compared with $300.3 million for same period of 2010. |
◦ | Angiomax/Angiox international net revenue in the first nine months of 2011 increased by 40% to $23.7 million compared with $16.9 million for same period of 2010. |
(in millions) | Reported GAAP Net Income | Stock-Based Compensation Expense | Non-cash (Benefit) Provision for Income Taxes | Non-GAAP Net Income(1) | |||||||||
Q3 2011 | $ | 72.6 | $ | 2.9 | $ | (66.3 | ) | $ | 9.2 | ||||
Q3 2010 | $ | 21.2 | $ | 1.8 | $ | (0.2 | ) | $ | 22.8 | ||||
9M 2011 | $ | 108.3 | $ | 8.4 | $ | (59.8 | ) | $ | 56.9 | ||||
9M 2010 | $ | 46.1 | $ | 6.8 | $ | 0.7 | $ | 53.6 | |||||
Note: Amounts may not sum due to rounding. (1) Excluding stock-based compensation expense and the non-cash (benefit) provision for income taxes. |
(per share) | Reported GAAP EPS | Stock-Based Compensation Expense | Non-cash (Benefit) Provision for Income Taxes | Non-GAAP EPS (1) | ||||||||||
Q3 2011 | $ | 1.34 | $ | 0.05 | $ | (1.22 | ) | $ | 0.17 | |||||
Q3 2010 | $ | 0.40 | $ | 0.03 | $ | — | $ | 0.43 | ||||||
9M 2011 | $ | 2.00 | $ | 0.15 | $ | (1.10 | ) | $ | 1.05 | |||||
9M 2010 | $ | 0.87 | $ | 0.13 | $ | 0.01 | $ | 1.01 | ||||||
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 (benefit) provision for income taxes. |
The Medicines Company | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(unaudited) | ||||||||
(in thousands, except per share data) | Three months ended September 30, | |||||||
2011 | 2010 | |||||||
Net revenue | $ | 120,773 | $ | 105,743 | ||||
Operating expenses: | ||||||||
Cost of revenue | 39,459 | 31,568 | ||||||
Research and development | 26,550 | 16,676 | ||||||
Selling, general and administrative | 45,353 | 35,788 | ||||||
Total operating expenses | 111,362 | 84,032 | ||||||
Income from operations | 9,411 | 21,711 | ||||||
Other income | 578 | 483 | ||||||
Income before income taxes | 9,989 | 22,194 | ||||||
Benefit (provision) for income taxes | 62,625 | (989 | ) | |||||
Net income | $ | 72,614 | $ | 21,205 | ||||
Basic earnings per common share | $ | 1.36 | $ | 0.40 | ||||
Shares used in computing basic earnings per common share | 53,534 | 52,991 | ||||||
Diluted earnings per common share | $ | 1.34 | $ | 0.40 | ||||
Shares used in computing diluted earnings per common share | 54,260 | 53,359 |
The Medicines Company | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(unaudited) | ||||||||
(in thousands, except per share data) | Year to Date September 30, | |||||||
2011 | 2010 | |||||||
Net revenue | $ | 352,501 | $ | 317,966 | ||||
Operating expenses: | ||||||||
Cost of revenue | 112,859 | 93,905 | ||||||
Research and development | 76,878 | 54,128 | ||||||
Selling, general and administrative | 124,701 | 121,318 | ||||||
Total operating expenses | 314,438 | 269,351 | ||||||
Income from operations | 38,063 | 48,615 | ||||||
Legal settlement | 17,984 | — | ||||||
Other income | 1,450 | 55 | ||||||
Income before income taxes | 57,497 | 48,670 | ||||||
Benefit (provision) for income taxes | 50,798 | (2,607 | ) | |||||
Net income | $ | 108,295 | $ | 46,063 | ||||
Basic earnings per common share | $ | 2.03 | $ | 0.87 | ||||
Shares used in computing basic earnings per common share | 53,414 | 52,773 | ||||||
Diluted earnings per common share | $ | 2.00 | $ | 0.87 | ||||
Shares used in computing diluted earnings per common share | 54,242 | 53,005 |
The Medicines Company | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | September 30, | December 31, | ||||||
2011 | 2010 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Cash, cash equivalents and available for sales securities | $ | 307,774 | $ | 246,644 | ||||
Accrued interest receivable | 443 | 1,279 | ||||||
Accounts receivable, net | 72,725 | 46,551 | ||||||
Inventory | 30,426 | 25,343 | ||||||
Prepaid expenses and other current assets | 7,452 | 4,804 | ||||||
Total current assets | 418,820 | 324,621 | ||||||
Fixed assets, net | 18,528 | 20,662 | ||||||
Intangible assets, net | 86,147 | 82,925 | ||||||
Restricted cash | 4,626 | 5,778 | ||||||
Deferred tax assets | 93,582 | 25,197 | ||||||
Goodwill | 14,671 | 14,671 | ||||||
Other assets | 289 | 270 | ||||||
Total assets | $ | 636,663 | $ | 474,124 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | $ | 125,270 | $ | 85,370 | ||||
Contingent purchase price | 28,204 | 25,387 | ||||||
Other long term liabilities | 5,896 | 5,769 | ||||||
Stockholders' equity | 477,293 | 357,598 | ||||||
Total liabilities and stockholders' equity | $ | 636,663 | $ | 474,124 |
The Medicines Company | |||||||||||||||
Reconciliation of GAAP to non-GAAP Measures | |||||||||||||||
(All amounts in thousands, except per share amounts) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2011 | |||||||||||||||
GAAP(1) | Stock-Based Compensation | Non-cash Tax Provision | Non-GAAP(4) As Adjusted | ||||||||||||
Net revenue | $ | 120,773 | $ | — | $ | — | $ | 120,773 | |||||||
Operating expenses: | |||||||||||||||
Cost of revenue | 39,459 | (21 | ) | (2) | — | 39,438 | |||||||||
Research and development | 26,550 | (527 | ) | (2) | — | 26,023 | |||||||||
Selling, general and administrative | 45,353 | (2,353 | ) | (2) | — | 43,000 | |||||||||
Total operating expenses | 111,362 | (2,901 | ) | — | 108,461 | ||||||||||
Income from operations | 9,411 | 2,901 | — | 12,312 | |||||||||||
Legal settlement | — | — | — | — | |||||||||||
Other income | 578 | — | — | 578 | |||||||||||
Income before income taxes | 9,989 | 2,901 | — | 12,890 | |||||||||||
Benefit (provision) for income taxes | 62,625 | — | (66,296 | ) | (3) | (3,671 | ) | ||||||||
Net income | $ | 72,614 | $ | 2,901 | $ | (66,296 | ) | $ | 9,219 | ||||||
Basic earnings per common share | $ | 1.36 | $ | 0.05 | $ | (1.24 | ) | $ | 0.17 | ||||||
Shares used in computing basic earnings per common share | 53,534 | 53,534 | 53,534 | 53,534 | |||||||||||
Diluted earnings per common share | $ | 1.34 | $ | 0.05 | $ | (1.22 | ) | $ | 0.17 | ||||||
Shares used in computing diluted earnings per common share | 54,260 | 54,260 | 54,260 | 54,260 | |||||||||||
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) | |||||||||||||||
Nine Months Ended September 30, | |||||||||||||||
2011 | |||||||||||||||
GAAP(1) | Stock-Based Compensation | Non-cash Tax Provision | Non-GAAP(4) As Adjusted | ||||||||||||
Net revenue | $ | 352,501 | $ | — | $ | — | $ | 352,501 | |||||||
Operating expenses: | |||||||||||||||
Cost of revenue | 112,859 | (98 | ) | (2) | — | 112,761 | |||||||||
Research and development | 76,878 | (1,486 | ) | (2) | — | 75,392 | |||||||||
Selling, general and administrative | 124,701 | (6,792 | ) | (2) | — | 117,909 | |||||||||
Total operating expenses | 314,438 | (8,376 | ) | — | 306,062 | ||||||||||
Income from operations | 38,063 | 8,376 | — | 46,439 | |||||||||||
Legal settlement | 17,984 | — | — | 17,984 | |||||||||||
Other income | 1,450 | — | — | 1,450 | |||||||||||
Income before income taxes | 57,497 | 8,376 | — | 65,873 | |||||||||||
Benefit (provision) for income taxes | 50,798 | — | (59,743 | ) | (3) | (8,945 | ) | ||||||||
Net income | $ | 108,295 | $ | 8,376 | $ | (59,743 | ) | $ | 56,928 | ||||||
Basic earnings per common share | $ | 2.03 | $ | 0.16 | $ | (1.12 | ) | $ | 1.07 | ||||||
Shares used in computing basic earnings per common share | 53,414 | 53,414 | 53,414 | 53,414 | |||||||||||
Diluted earnings per common share | $ | 2.00 | $ | 0.15 | $ | (1.10 | ) | $ | 1.05 | ||||||
Shares used in computing diluted earnings per common share | 54,242 | 54,242 | 54,242 | 54,242 | |||||||||||
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 September 30, | |||||||||||||||
2010 | |||||||||||||||
GAAP(1) | Stock-Based Compensation | Non-cash Tax Provision | Non-GAAP(4) As Adjusted | ||||||||||||
Net revenue | $ | 105,743 | $ | — | $ | — | $ | 105,743 | |||||||
Operating expenses: | |||||||||||||||
Cost of revenue | 31,568 | (57 | ) | (2) | — | 31,511 | |||||||||
Research and development | 16,676 | (331 | ) | (2) | — | 16,345 | |||||||||
Selling, general and administrative | 35,788 | (1,387 | ) | (2) | — | 34,401 | |||||||||
Total operating expenses | 84,032 | (1,775 | ) | — | 82,257 | ||||||||||
Income from operations | 21,711 | 1,775 | — | 23,486 | |||||||||||
Other income | 483 | — | — | 483 | |||||||||||
Income before income taxes | 22,194 | 1,775 | — | 23,969 | |||||||||||
(Provision) benefit for income taxes | (989 | ) | — | (148 | ) | (3) | (1,137 | ) | |||||||
Net income | $ | 21,205 | $ | 1,775 | $ | (148 | ) | $ | 22,832 | ||||||
Basic earnings per common share | $ | 0.40 | $ | 0.03 | $ | — | $ | 0.43 | |||||||
Shares used in computing basic earnings per common share | 52,991 | 52,991 | 52,991 | 52,991 | |||||||||||
Diluted earnings per common share | $ | 0.40 | $ | 0.03 | $ | — | $ | 0.43 | |||||||
Shares used in computing diluted earnings per common share | 53,359 | 53,359 | 53,359 | 53,359 | |||||||||||
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) | |||||||||||||||
Nine Months Ended September 30, | |||||||||||||||
2010 | |||||||||||||||
GAAP(1) | Stock-Based Compensation | Non-cash Tax Provision | Non-GAAP(4) As Adjusted | ||||||||||||
Net revenue | $ | 317,966 | $ | — | $ | — | $ | 317,966 | |||||||
Operating expenses: | |||||||||||||||
Cost of revenue | 93,905 | (218 | ) | (2) | — | 93,687 | |||||||||
Research and development | 54,128 | (1,569 | ) | (2) | — | 52,559 | |||||||||
Selling, general and administrative | 121,318 | (5,068 | ) | (2) | — | 116,250 | |||||||||
Total operating expenses | 269,351 | (6,855 | ) | — | 262,496 | ||||||||||
Income from operations | 48,615 | 6,855 | — | 55,470 | |||||||||||
Other income | 55 | — | — | 55 | |||||||||||
Income before income taxes | 48,670 | 6,855 | — | 55,525 | |||||||||||
(Provision) benefit for income taxes | (2,607 | ) | — | 710 | (3) | (1,897 | ) | ||||||||
Net income | $ | 46,063 | $ | 6,855 | $ | 710 | $ | 53,628 | |||||||
Basic earnings per common share | $ | 0.87 | $ | 0.13 | $ | 0.01 | $ | 1.02 | |||||||
Shares used in computing basic earnings per common share | 52,773 | 52,773 | 52,773 | 52,773 | |||||||||||
Diluted earnings per common share | $ | 0.87 | $ | 0.13 | $ | 0.01 | $ | 1.01 | |||||||
Shares used in computing diluted earnings per common share | 53,005 | 53,005 | 53,005 | 53,005 | |||||||||||
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 |