The Medicines Company (MDCO)
Q1 2010 Earnings Call Transcript
April 28, 2010 8:30 am ET
Michael Mitchell – Director, Communications & IR
Clive Meanwell – Chairman and CEO
Glenn Sblendorio – EVP and CFO
Joseph Schwartz – Leerink
Cory Kasimov – JPMorgan
Lucy Lu – Citigroup
Jason Kantor – RBC Capital Markets
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I would now like to turn the presentation over to your host for today's conference, Mr. Michael
Mitchell, Director of Communications and Investor Relations. Please proceed.
Thank you, Carissa. Good morning, everyone. Thank you for joining us to review The Medicines Company first quarter 2010 financial results.
I would like to remind you that this call will contain forward-looking statements about The Medicines Company that are not – purely historical, and all statements that are not purely historical may be deemed to be forward-looking statements, which involve a number of risks and uncertainties. Without limiting the foregoing, the words “believes”, “anticipates”, “plans”, “expects”, “estimates” and similar expressions are intended to identify forward-looking statements.
Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are identified in the company's SEC filings, including on Form 10-K with the SEC on March 16, 2010. Copies of our SEC filings can be obtained from the SEC, or by visiting the Investor Relations section of our website.
I would also note that during the call we may refer to non-GAAP measures, which exclude costs associated with the Targanta acquisition last year, stock-based compensation expense, and non-cash income taxes. Please refer to the non-GAAP reconciliation tables in our press release. I'll now turn the call over to Clive Meanwell, our Chairman and CEO. Clive?
Thanks very much, Michael, and good morning to everybody.
There are three themes I'll focus on to talk about our business in the first quarter of 2010. First, Angiomax volume continued to grow this quarter, based on strong demand in the United States and international expansion. We anticipate this growth will continue, and furthermore, we believe we have multiple shots at Angiomax market exclusivity in the US beyond 2010.
Second, our performance in the quarter demonstrates that we are doing more with less and, third, our diverse portfolio of seven marketed and development products, together with early stage discovery capabilities and an active business development program provides for robust innovation and value creation going forward.
In the first quarter, hospital demand for Angiomax in the United States grew and Angiox in Europe accelerated. In the US, volume and share growth was substantial in both high risk and low risk segments of the coronary angioplasty market. Among high risk **stem E patients, our market share has grown from 18% before the Horizon trial results in 2007 to 32% as of the mid first quarter of this year.
Our non-stem E share has now increased to 43%. Among lower risk patients, we saw a share of 56% in unstable angina and 61% in stable angina. This means that during the first quarter 2010, for the first time, we reached more than 50% aggregate market share in PCI in the US, now overtaking all heparins combined, as we did some time ago for all glyco-protein 2B 3A platelet inhibitors combined.
An important emerging trend in the US cath lab is management of PCI patients in the outpatient setting, meaning that they stay in hospital for less than 24 hours. Angiomax is well suited to this situation and has enabled outpatient PCI in fact. This now represents 15% to 18% of all PCI procedures in this country and within this expanding segment, Angiomax market share has grown from 49% to 59% over the last year.
Consequent to these gains in market share, hospital demand for Angiomax this quarter reached a record high of about 182,000 vials for hospitals. And to supply these hospitals, wholesalers ordered about 175,000 vials, which means the distribution channel was reduced by 7000 vials.
With the growth in demand for Angiomax in outpatient use, we are now offering the product to qualifying hospitals at a considerable discount to [ph] our normal selling price for outpatient procedures only. This, of course, is pursuant to a government pricing program. We anticipate that this offering will continue to drive growth in the outpatient segment, but is tempered, of course, by the price discount.
Glenn will describe the expected financial impact on the quarter and the year. From a business point of view, we'll continue to drive Angiomax volume and market share in both inpatients and outpatients, because this product has now become the global standard of care for PCI in our view.
Outside the United States, volume and share growth accelerated, particularly in the high risk patient cohorts. Sales were $5.6 million, which happens to be exactly the amount of our ex-US sales for the whole of 2007. Of strategic importance is progress we made in the first quarter in the largest European PCI markets. The volume of Angiox more than doubled in Europe, with particularly strong growth in Scandinavia, Germany, and Italy, following the additional December EMEA approval of Angiox in stem-E.