Investors reacted positively to
The Medicines Company's
) third quarter results with shares increasing more than 9% since
the company announced results on Oct 23 before the opening bell.
The company's third quarter earnings of 47 cents per share were
well above the year-ago earnings of 27 cents per share. Including
the impact of stock-based compensation expense, third quarter
2013 earnings were 38 cents per share, significantly above the
year-ago earnings of 22 cents per share. The Zacks Consensus
Estimate for the third quarter of 2013 was 19 cents per
Including one-time items, the company reported earnings of 12
cents per share compared to the year-ago earnings of 17 cents per
share. Third quarter 2013 revenues increased 27% year over year
to $174.3 million, ahead of the Zacks Consensus Estimate of $173
The Quarter in Detail
Angiomax U.S. sales increased 12% to $138.5 million due to
higher volume (7.3%) and price increases (4.6%). Ex-U.S. sales of
Angiomax increased 52% to $15.1 million during the quarter. The
Medicines Co. reported continued growth in market share in the
percutaneous coronary intervention (PCI) segment in the U.S.
The Medicines Co. is currently working on expanding Angiomax'
label into peripheral endovascular intervention (PEI). The
company is conducting a phase III study (ENDOMAX - ENDOvascular
interventions with AngioMAX) in patients undergoing PEI.
Recothrom sales in the U.S. were $17 million, reflecting
volume growth of 10.7%. The Medicines Co. started selling
Recothrom from Feb 8, 2013 under its collaboration with
). Net sales of The Medicines Co.'s Ready-to-Use (RTU)
Argatroban, Cleviprex and generic portfolio increased 22% to $3.7
million in the third quarter of 2013. The Medicines Co. intends
to launch Cleviprex in Europe early next year.
The Medicines Co. maintained its 2013 net revenue growth
guidance of 20% - 22%.
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, by year end.
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 shortly.
Meanwhile, a regulatory submission for Fibrocaps (a dry powder
topical fibrinogen thrombin hemostat) will be filed in the EU by
year end. The U.S. filing is slated for the first quarter of
2014. A supplemental new drug application (sNDA) for Ionsys (a
patient-controlled analgesia system for the management of acute
postoperative pain) will be submitted early next year in the U.S.
and in the third quarter of 2014 in the EU.
We are impressed by The Medicines Co.'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
The Medicines Co. currently carries a Zacks Rank #3 (Hold).
Currently, companies like
) look well-positioned with both being Zacks Rank #1 (Strong Buy)
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