The Medicines Company Reports Fourth Quarter and Full Year 2006 Financial Results.Angiomax[R] (Bivalirudin) Sales Growth Drives Net Revenues above Top End of Guidance Range Earnings Performance Exceeds Guidance Cleviprex[TM] (Clevidipine) Safety Trials Completed, Cangrelor Trials on Track PARSIPPANY, N.J. -- The Medicines Company (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : MDCO) today announced its financial results for the fourth quarter and full year 2006. Full year 2006 revenue of $214 million exceeded the upper end of the Company's guidance of $205 to $212 million. The Company reported fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the year of $1.25, including a tax benefit provided for by FAS 109 under U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Excluding this tax benefit, the Company had non-GAAP earnings per share of $0.34, exceeding the Company's forecasted range of $0.28 to $0.32 per share. Additional financial highlights: * Net revenues increased to $60.4 million for the fourth quarter 2006, compared with $32.1 million for the fourth quarter of 2005. For the full year 2006, net revenues increased to $214.0 million, from $150.2 million for the full year 2005. * Net income was $54.3 million for the fourth quarter 2006, compared to a net loss of $5.1 million for the fourth quarter 2005. Net income was $63.7 million for the full year 2006, compared to a net loss of $7.8 million for the full year 2005. Net income results for the fourth quarter 2006 and the full year 2006 included an income tax benefit of $46.4 million and $46.1 million, respectively. * Net income results for the full year 2006 include $8.5 million of stock-based compensation expense required by FAS 123R. Excluding the benefit for income taxes required by FAS 109 and the expense of stock-based compensation required by FAS 123R, non-GAAP net income was $10.1 million for the fourth quarter 2006, compared to a net loss of $5.1 million for the fourth quarter 2005. For the full year 2006, non-GAAP net income, excluding the same items noted above, was $25.6 million, compared to a net loss of $7.8 million for the full year 2005. Reconciliations between GAAP and non-GAAP net income for the full years 2006 and 2005 and the fourth quarters of 2006 and 2005 are provided in the following table: [TABLE OMITTED] Reconciliations between GAAP and non-GAAP fully diluted earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) for the full years 2006 and 2005 and the fourth quarters of 2006 and 2005 are provided in the following table: [TABLE OMITTED] 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, especially when comparing such results to previous periods, expected growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. or forecasted guidance, particularly as related to both stock based compensation expense and the recognition of the income tax benefit. 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 Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP. A reconciliation of GAAP results with non-GAAP results may be found in the attached financial tables. "In 2006, we took major steps forward in advancing our acute care hospital franchise by achieving key goals with each of our three brands," said John Kelley
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "We exceeded the sales goal for Angiomax, we completed the Phase III Noun 1. phase III - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the FDA safety trials of Cleviprex[TM] (clevidipine), our novel blood pressure control agent, and we started both Phase III trials for cangrelor, our novel antiplatelet therapy antiplatelet therapy Hematology Any therapy that inhibits platelet adhesion and/or aggregation, both of which ↑ complications of ASHD. See Aspirin, Thrombolytic therapy. ." Glenn Sblendorio, Executive Vice President and Chief Financial Officer of The Medicines Company, stated, "The Medicines Company achieved record sales in 2006 as Angiomax continues to grow. With this growth we achieved profits that beat our goals. We expect continued growth in both revenues and operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before into 2007." The Medicines Company is providing 2007 guidance as follows. The Company expects: * Net revenues of $276 million to $286 million * Cost of revenues of 25% to 26% * Sales, general and administrative expenses of $88 million to $92 million ($101 million to $106 million including stock based compensation as noted below) * Research and development expenses of $77 million to $81 million ($80 million to $84 million including stock based compensation as noted below) * Total stock based compensation expense of $16 to $17 million, of which approximately 80% is added to the SG&A guidance above and approximately 20% is added to the R&D guidance above * Investment income of $10 million to $12 million * Effective tax rate between 35% and 38% * GAAP net income of between $22 and $25 million * Excluding anticipated stock based compensation expense of $16 to $17 million and anticipated non-cash income tax provisions of $13 to $14 million, non-GAAP net income of between $51 and $56 million for 2007. There will be a conference call with management today at 8:30 A.M. ET to discuss financial results, guidance, outlook 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: 800-967-7185 International Dial In: 719-457-2634 Replay is available from 11:30 am Eastern Time following the conference call through March 7, 2007. To hear a replay of the call dial 888-203-1112 (domestic) and 719-457-0820 (international). Passcode for both dial in numbers in numbered parts; as, a book published in numbers. See also: Number is 9117488. MDCO-F About The Medicines Company: The Medicines Company is committed to delivering innovative, cost-effective acute care hospital products in the worldwide hospital marketplace. The Company markets Angiomax[R] (bivalirudin) in the U.S. and other countries for use in patients undergoing coronary angioplasty angioplasty (ăn`jēōplăs'tē), any surgical repair of a blood vessel, especially balloon angioplasty or percutaneous transluminal coronary angioplasty, a treatment of coronary artery disease. , a procedure to clear restricted blood flow in arteries Arteries Blood vessels that carry oxygenated blood away from the heart to the cells, tissues, and organs of the body. Mentioned in: Adrenergic Blockers, Angiotensin-Converting Enzyme Inhibitors, Antihypertensive Drugs, Hypertension, Thrombolytic Therapy, around the heart. The Company also has two products in late-stage development, Cleviprex[TM] (clevidipine) and cangrelor. The Company's website is http://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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. for purposes of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions under The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Without limiting the foregoing, the words "believes," "anticipates" and "expects" and similar expressions 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 whether we are successful in extending the term of the patent, the extent of the commercial success of Angiomax, the impact of FAS 123R on our future financial results, whether the Company's products will advance in the clinical trials process, whether the Company's product candidates will receive approvals from regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. , 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 prospectus supplement filed on January 16, 2007, which are incorporated herein by reference. The Company specifically disclaims any obligation to update these forward-looking statements [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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