The Medicines Company
) reported first quarter earnings of 24 cents per share, compared
with the year-ago earnings of 14 cents per share.
Including one-time items, the company reported a loss of 21
cents per share compared to the year-ago earnings of 14 cents per
share. The Zacks Consensus Estimate for the first quarter of 2013
was a loss of 27 cents. First quarter 2013 revenues increased 23%
year over year to $155.8 million, in line with the Zacks
The Quarter in Detail
Angiomax US sales increased 14% to $131.3 million. Ex-US sales
of Angiomax increased 9% to $11.6 million during the quarter. The
Medicines Company reported an increase in market share in the low
risk percutaneous coronary intervention (PCI) segment in the US.
We note that the company took a price increase of 7% for Angiomax
Recothrom sales in the US were $8.6 million. The Medicines
Company started selling Recothrom from Feb 8, 2013 under its
Adjusted research and development expenses during the quarter
decreased 2.2% to $32.1 million.
Adjusted selling, general and administrative expenses
increased 28.4% to $55.5 million for the quarter.
The Medicines Company remains on track to achieve net revenue
growth of 20%−22% in 2013. The Medicines Company intends to seek
marketing approval for Cangrelor in the US in the second quarter
of 2013 and in the EU by year end. The company will seek approval
for Cangrelor for all PCIs in all patient subgroups and in
patients who require bridging from oral antiplatelet therapy
Meanwhile, results on oritavancin from the SOLO-II study
should be out by mid-2013. Positive results from the SOLO-I study
were presented in Dec 2012. Oritavancin is being developed for
the treatment of acute bacterial skin and skin structure
infections (ABSSSI) caused by susceptible grampositive bacteria,
including methicillin-resistant staphylococcus aureus (MRSA).
However, the delay in Medicines Company's plans for filing for
US approval of Ionsys is disappointing. Ionsys is a compact,
disposable, needleless patient-controlled analgesia (PCA) system
which is being developed for the short-term management of acute
postoperative pain in the hospital setting.
The Medicines Company said that it is upgrading the integrated
electronics and software prior to filing so as to improve the
reliability and safety of the device. As a result, the company
now expects to file for approval in the US in early 2014 instead
of late 2013. The EU marketing application will be filed shortly
after the filing of the US application.
The Medicines Company currently carries a Zacks Rank #2 (Buy).
We expect Angiomax to continue performing well. Moreover, we are
pleased to see management actively pursuing in-licensing deals
and acquisitions to drive growth.
Companies that currently look well-positioned include
Cleveland BioLabs, Inc.
). Both are Zacks Rank #1 (Strong Buy) stocks.
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