The Medicines Company
) reported second quarter earnings of 44 cents per share, well
above the year-ago earnings of 27 cents per share.
Including one-time items, the company reported earnings of 30
cents per share compared to the year-ago earnings of 25 cents per
share. The Zacks Consensus Estimate for the first quarter of 2013
was 32 cents per share. Second quarter 2013 revenues increased
27% year over year to $172.8 million, ahead of the Zacks
Consensus Estimate of $168 million.
The Quarter in Detail
Angiomax U.S. sales increased 14% to $137.9 million due to
higher volume and price increases. Ex-U.S. sales of Angiomax
increased 11% to $13.2 million during the quarter. The Medicines
Company reported continued growth in market share in the
percutaneous coronary intervention (PCI) segment in the U.S.
Recothrom sales in the U.S. were $17.9 million. The Medicines
Company started selling Recothrom from Feb 8, 2013 under its
Bristol-Myers Squibb Company
Adjusted research and development expenses were $27
Adjusted selling, general and administrative expenses
increased 32% to $52.7 million for the quarter.
2013 Guidance Maintained
The Medicines Company maintained its net revenue guidance of
20%−22% increase in 2013. Revenues in the third quarter are
expected to remain flat on a sequential basis reflecting a
historical slowdown in cath labs and surgical suites.
Meanwhile, The Medicines Co. has made significant progress
with its pipeline. While its antiplatelet candidate, Cangrelor,
is currently under FDA review (for use in patients undergoing PCI
and in patients requiring bridging from oral antiplatelet therapy
to surgery), the company intends to file a new drug application
(NDA) for its antibiotic candidate, oritavancin, in the fourth
quarter. The EU submission for oritavancin is expected in the
first half of 2014. Oritavancin peak sales are expected to be at
least $400 million.
As far as Cangrelor is concerned, a response from the FDA
should be out in the second quarter of 2014. The company intends
to file for EU approval in the fourth quarter. The company
estimates Cangrelor peak sales at $450 million.
The Medicines Company entered into an agreement with Dutch
company, ProFibrix B.V. in Jun 2013, under which it will receive
an option to purchase all the outstanding capital stock of the
latter. The option may be exercised by The Medicines Co. once it
reviews results from an ongoing phase III study being conducted
with ProFibrix' lead biologic, Fibrocaps. The company expects to
come at a decision regarding this option in the coming few
The Medicines Company's second quarter results were strong.
Moreover, we are impressed by the company's progress with its
pipeline. With Cangrelor under FDA review and oritavancin
scheduled to be filed this year, The Medicines Co. could
potentially have two additional products in its portfolio next
year. We expect more visibility on the pipeline at the company's
R&D day to be held on Oct 10.
The Medicines Company currently carries a Zacks Rank #4
(Sell). Companies that currently look well-positioned include
Sarepta Therapeutics, Inc.
) with Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy),
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