The Medicines Company
) reported second quarter earnings of 25 cents per share. Second
quarter earnings were well above year-ago earnings of 21 cents per
share. The Zacks Consensus Estimate for the second quarter earnings
was 17 cents per share. Earnings were boosted by strong
Second quarter 2012 revenues came in at $135.7 million, up 13.5%
and above the Zacks Consensus Estimate of $132 million. Angiomax'
strong performance led to the increase in revenues. The company
said that sales in all three regions - the US, Europe and
Asia-Pacific - exceeded its targets.
The Quarter in Detail
Angiomax US sales increased 8.2% to $121.2 million during the
second quarter. Ex-US sales increased a sharp 63.6% to $11.9
million, mainly due to increasing sales in Europe, especially the
UK, the Nordic region, Benelux, Italy and Russia.
Angiomax, acquired from
Biogen Idec Inc.
), is the lead product at The Medicines Company. Acquired in 1996,
Angiomax is used as an anticoagulant in patients undergoing
Argatroban and Cleviprex contributed the balance revenue for the
company. The Medicines Company launched these products in the third
quarter of 2011.
The Medicines Company also earned revenues of $2.5 million from
its co-promotion agreement with
) for Brilinta in the US. The company has a worldwide development
and collaboration agreement with AstraZeneca for acute ischemic
heart disease compounds including Brilinta, Angiomax and
Research and development (R&D) spend increased 24.2% to
$33.0 million. Selling, general and administrative (SG&A)
expenses, however, decreased 2.3% to $40.5 million.
Apart from announcing second quarter results, The Medicines
Company updated its guidance for 2012. The company raised its
revenue growth guidance to 11%-12% from the old guidance of 9%-11%
for 2012. The company also reminded that the third quarter is
typically flat on a sequential basis.
Moreover, The Medicines Company expects R&D spend of around
$59-$62 million during the rest of the year. The company explained
that the increase in R&D spend for the second half of the year
is mainly due to the advancement of studies with Cangrelor and
oritavancin. The Medicines Company expects total R&D to be 20%
of the total revenue this year.
The Medicines Company also provided an update on its pipeline
candidates. The company plans to continue with the PHOENIX trial by
enrolling around 10,900 patients. The company also expects to
release results from this study by year end, a year ahead of
previous expectations. If all goes well, the company will be
launching the candidate a year earlier, anticipating peak sales
revenues of $450 million (previously $400 million).
Meanwhile, oritavancin is in a phase III program, SOLO (SOLO-1
and SOLO-2), for the treatment of acute bacterial skin and skin
structure infections (ABSSI). The Medicines Company has accelerated
the SOLO-1 trial and expects to present results in the fourth
quarter. If results are positive, the company intends to speed up
the other study, SOLO-2, so that a new drug application (NDA) can
be filed in mid-2013.
The Medicines Company intends to file MDCO-157 for approval
using a Section 505(b) (2) NDA in 2013. Clinical studies are
expected to commence later this summer. MDCO-157 is a
Captisol-enabled intravenous (IV) formulation of clopidogrel (the
active ingredient in Plavix). The company progressed steadily with
the other phase II trial of MDCO-2010 during the reported
We currently have a Neutral recommendation on The Medicines
Company, which carries a Zacks #3 Rank (short-term Hold rating). We
are pleased to see the company's progress with its pipeline. The
AstraZeneca deal is another smart move by the company.
ASTRAZENECA PLC (AZN): Free Stock Analysis
BIOGEN IDEC INC (BIIB): Free Stock Analysis
MEDICINES CO (MDCO): Free Stock Analysis Report
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