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 24, 2012 entitled “The Medicines Company Reports Third Quarter 2012 Financial Results” |
Exhibit No. | Description |
99.1 | Press release dated October 24, 2012 entitled “The Medicines Company Reports Third Quarter 2012 Financial Results” |
• | Net revenue increased by 13.3% to $136.8 million for the third quarter of 2012 from $120.8 million in the third quarter of 2011. |
◦ | Angiomax U.S. sales increased by 11.4% to $123.8 million in the third quarter of 2012 compared to $111.1 million in the third quarter of 2011. |
◦ | Angiomax/Angiox international net revenue in the third quarter of 2012 increased by 8.1% to $10.0 million compared with $9.2 million in the third quarter of 2011. This included European Angiox volume growth of 44% in the third quarter of 2012 compared to the third quarter of 2011. |
• | Net income for the third quarter of 2012 was $9.3 million, or $0.17 per share, compared with net income of $72.6 million, or $1.34 per share, for the third quarter of 2011. Net income for the third quarter of 2011 included a $66.5 million benefit for income taxes related to a reduction in the Company's valuation allowance against its deferred tax assets. |
• | Non-GAAP net income for the third quarter of 2012 was $21.8 million, or $0.40 per share, compared to non-GAAP net income of $9.2 million, or $0.17 per share for the third quarter 2011. Non-GAAP net income excludes stock-based compensation expense, non-cash interest expense and non-cash income taxes. A reconciliation of the Company's GAAP to non-GAAP results is included within the press release. |
• | Net revenue increased by 13.2% to $399.1 million for the first nine months ended of 2012 compared with $352.5 million for the same period in 2011. |
◦ | Angiomax U.S. sales increased by 9.9% to $360.5 million for the first nine months of 2012 compared with $328.1 million for the same period of 2011. |
◦ | Angiomax/Angiox international net revenue for the first nine months of 2012 increased by 37.5% to $32.5 million compared with $23.7 million for the same period of 2011. This included European Angiox volume growth of 54% in the first nine months of 2012 compared to the same period of 2011. |
• | Net income for the first nine months of 2012 was $30.6 million, or $0.55 per share, compared with net income of $108.3 million, or $2.00 per share, for the same period of 2011. Net income for the first nine months of 2011 included a $59.7 million benefit for income taxes, or $1.10 per share, related to a reduction in the Company's valuation allowance against its deferred tax assets. |
• | Non-GAAP net income for the first nine months of 2012 was $62.7 million, or $1.13 per share, compared with non-GAAP net income of $56.9 million, or $1.05 per share for same period of 2011. Non-GAAP net income excludes stock-based compensation expense, non-cash interest expense and non-cash income taxes. |
• | Completed patient enrollment in SOLO-I, a 960 patient Phase 3 clinical trial of oritavancin |
• | Completed patient enrollment in CHAMPION PHOENIX, an 10,900 patient Phase 3 clinical trial of cangrelor |
• | Commenced patient enrollment in a pharmacodynamic equivalence study of intravenous MDCO-157 comparing it with oral clopidogrel |
The Medicines Company | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(unaudited) | ||||||||
(in thousands, except per share data) | Three months ended September 30, | |||||||
2012 | 2011 | |||||||
Net revenue | $ | 136,786 | $ | 120,773 | ||||
Operating expenses: | ||||||||
Cost of revenue | 43,767 | 39,459 | ||||||
Research and development | 34,536 | 26,550 | ||||||
Selling, general and administrative | 43,396 | 45,353 | ||||||
Total operating expenses | 121,699 | 111,362 | ||||||
Income from operations | 15,087 | 9,411 | ||||||
Legal settlement | — | — | ||||||
Co-promotion income | 3,750 | — | ||||||
Interest expense | (3,605 | ) | — | |||||
Other income | 204 | 578 | ||||||
Income before income taxes | 15,436 | 9,989 | ||||||
(Provision) benefit for income taxes | (6,172 | ) | 62,625 | |||||
Net income | 9,264 | 72,614 | ||||||
Net loss attributable to non-controlling interest | 1 | — | ||||||
Net income attributable to The Medicines Company | $ | 9,265 | $ | 72,614 | ||||
Basic earnings per common share | $ | 0.18 | $ | 1.36 | ||||
Shares used in computing basic earnings per common share | 52,896 | 53,534 | ||||||
Diluted earnings per common share | $ | 0.17 | $ | 1.34 | ||||
Shares used in computing diluted earnings per common share | 55,145 | 54,260 |
The Medicines Company | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(unaudited) | ||||||||
(in thousands, except per share data) | Year to Date September 30, | |||||||
2012 | 2011 | |||||||
Net revenue | $ | 399,098 | $ | 352,501 | ||||
Operating expenses: | ||||||||
Cost of revenue | 125,111 | 112,859 | ||||||
Research and development | 100,276 | 76,878 | ||||||
Selling, general and administrative | 127,049 | 124,701 | ||||||
Total operating expenses | 352,436 | 314,438 | ||||||
Income from operations | 46,662 | 38,063 | ||||||
Legal settlement | — | 17,984 | ||||||
Co-promotion income | 6,250 | — | ||||||
Interest expense | (4,389 | ) | — | |||||
Other income | 963 | 1,450 | ||||||
Income before income taxes | 49,486 | 57,497 | ||||||
Provision (benefit) for income taxes | (18,897 | ) | 50,798 | |||||
Net income | 30,589 | 108,295 | ||||||
Net loss attributable to non-controlling interest | 2 | — | ||||||
Net income attributable to The Medicines Company | $ | 30,591 | $ | 108,295 | ||||
Basic earnings per common share | $ | 0.57 | $ | 2.03 | ||||
Shares used in computing basic earnings per common share | 53,653 | 53,414 | ||||||
Diluted earnings per common share | $ | 0.55 | $ | 2.00 | ||||
Shares used in computing diluted earnings per common share | 55,455 | 54,242 |
The Medicines Company | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | September 30, | December 31, | ||||||
2012 | 2011 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Cash, cash equivalents and available for sales securities | $ | 545,355 | $ | 340,512 | ||||
Accrued interest receivable | 414 | 374 | ||||||
Accounts receivable, net | 83,425 | 74,559 | ||||||
Inventory | 62,337 | 45,145 | ||||||
Deferred tax assets | 8,123 | 9,395 | ||||||
Prepaid expenses and other current assets | 12,922 | 11,738 | ||||||
Total current assets | 712,576 | 481,723 | ||||||
Fixed assets, net | 16,540 | 17,979 | ||||||
Intangible assets, net | 120,702 | 87,329 | ||||||
Restricted cash | 1,564 | 4,714 | ||||||
Deferred tax assets | 72,531 | 78,441 | ||||||
Goodwill | 14,671 | 14,671 | ||||||
Other assets | 14,950 | 7,790 | ||||||
Total assets | $ | 953,534 | $ | 692,647 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | $ | 142,572 | $ | 154,635 | ||||
Contingent purchase price | 22,633 | 20,431 | ||||||
Convertible senior notes (due 2017) | 223,711 | — | ||||||
Other long term liabilities | 6,076 | 5,939 | ||||||
Stockholders' equity | 558,542 | 511,642 | ||||||
Total liabilities and stockholders' equity | $ | 953,534 | $ | 692,647 |
The Medicines Company | ||||||||||||||||
Reconciliation of GAAP to non-GAAP Measures | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three months ended September 30, | Year to Date September 30, | |||||||||||||||
EARNINGS PER SHARE | 2012 | 2011 | 2012 | 2011 | ||||||||||||
GAAP earnings per share - Diluted | $ | 0.17 | $ | 1.34 | $ | 0.55 | $ | 2.00 | ||||||||
Adjustments to net income attributable to The Medicines Company (as detailed below) | 0.23 | (1.17 | ) | 0.58 | (0.95 | ) | ||||||||||
Non-GAAP earnings per share - Diluted | $ | 0.40 | $ | 0.17 | $ | 1.13 | $ | 1.05 | ||||||||
Three months ended September 30, | Year to Date September 30, | |||||||||||||||
(in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
GAAP net income attributable to The Medicines Company | $ | 9,265 | $ | 72,614 | $ | 30,591 | $ | 108,295 | ||||||||
Adjustments: | ||||||||||||||||
Cost of revenue: Stock-based compensation expense | 54 | 21 | 127 | 98 | ||||||||||||
Research and development: Stock-based compensation expense | 700 | 527 | 1,726 | 1,486 | ||||||||||||
Selling general and administrative: Stock-based compensation expense | 3,083 | 2,353 | 9,279 | 6,792 | ||||||||||||
Non-cash interest expense | 2,656 | — | 3,233 | — | ||||||||||||
Non-cash tax provision | 6,036 | (66,296 | ) | 17,746 | (59,743 | ) | ||||||||||
Non-GAAP net income attributable to The Medicines Company | $ | 21,794 | $ | 9,219 | $ | 62,702 | $ | 56,928 | ||||||||