The Medicines Company
) reported fourth quarter earnings of 71 cents per share,
compared with the year-ago earnings of 48 cents per share. The
Zacks Consensus Estimate for the fourth quarter was 27 cents.
Fourth quarter 2012 revenues increased 20.6% year-over-year to
$159.5 million, well above the Zacks Consensus Estimate of $147
Full-year earnings increased 18.9% to $1.64 per share.
Full-year revenues came in at $558.6 million, up 15.2%. The Zacks
Consensus Estimate for the full year was $546 million.
The Quarter in Detail
Angiomax US sales increased 13.7% to $141.2 million. Ex-US
sales of Angiomax increased 77.2% to $14.0 million during the
Research and development expenses during the quarter decreased
21.5% to $26.1 million.
Selling, general and administrative expenses increased 28% to
$44.7 million for the quarter.
The Medicines Company's 2013 guidance is mainly based on the
performance of key products like Angiomax, Cleviprex and
Argatroban. The company is confident that Angiomax can withstand
The Medicines Company expects net revenues to grow in the
range of 20%−22% in 2013. Research and development expenses are
expected to be 20% of net revenues, excluding stock−based
compensation expense. The company will continue phase IV trials
on Angiomax and Cleviprex.
Angiomax sales in Europe are expected to be in the range of
Selling, general and administrative expenses are expected in
the range of 27%−30% of net revenues, excluding stock−based
For the first quarter of 2013, net global revenues are
forecast in the range of $145−$155 million.
In Dec 2012, The Medicines Company announced positive results
on oritavancin for the potential treatment of acute bacterial
skin and skin structure infections (ABSSSI). Both the primary and
secondary endpoints of the SOLO I trial were successfully
Enrollment for SOLO II trial is almost 85% complete. Positive
results from this study could allow the company to move ahead
with regulatory applications and potentially launch the product
In Jan 2013, The Medicines Company announced positive results
on its phase III candidate, cangrelor. The candidate is being
developed for the prevention of platelet activation and
aggregation that leads to thrombosis in the acute care setting,
including patients undergoing percutaneous coronary intervention
The Medicines Company intends to submit data from the CHAMPION
PHOENIX and BRIDGE studies and seek marketing approval in the US
in the second quarter of 2013.
We are positive on The Medicines Company's effort to develop
its pipeline. Oritavancin and cangrelor, if approved, will boost
the company's product portfolio. We also expect Angiomax to
continue to do well. However, we prefer remaining on the
sidelines until we get more visibility on pipeline progress.
The Medicines Company carries a Zacks Rank #3 (Hold). However,
other stocks like
BioDelivery Sciences International, Inc.
Salix Pharmaceuticals Ltd.
) look more favorable than The Medicines Company. They all carry
a Zacks Rank #2 (Buy).
BIODELIVERY SCI (BDSI): Free Stock Analysis
CEMPRA INC (CEMP): Free Stock Analysis Report
MEDICINES CO (MDCO): Free Stock Analysis
SALIX PHARM-LTD (SLXP): Free Stock Analysis
To read this article on Zacks.com click here.