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Medicines Co. (MDCO)
Q3 2010 Earnings Call
October 27, 2010 08:30 am ET
Michael Mitchell - IR
Clive Meanwell - Chairman & CEO
Glenn Sblendorio - EVP & CFO
Cory Kasimov - JPMorgan
Matt Duffy - BDR Research
Jason Kantor - RBC Capital Market
Mike Schmitz - Leerink Swann
Previous Statements by MDCO
» The Medicines Company, Inc Q2 2010 Earnings Call Transcript
» The Medicines Company Q1 2010 Earnings Call Transcript
» The Medicines Company Q4 2008 Earnings Call Transcript
» The Medicines Company Q3 2008 Earnings Call Transcript
I'd like to now hand the call over to your host for today Mr. Michael Mitchell. Mr. Mitchell, over to your please.
Thanks Katie and good morning everyone. Thank you for joining to us to review the Medicine’s company third quarter 2010 financial result. I'd like to remind you that this call will contain forward looking statements about The Medicine Company that are not surely historical and all the statements that are not purely historical maybe deemed to be forward looking statements which involve a number of risk 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-Q filed with SEC on August 9, 2010. Copies of our SEC filings can be obtained from the SEC or by visiting the investor relation section of our website, I’d also like to note that during the call we may refer to non-GAAP measures which excludes cost associated with Targanta acquisition last year, stock-based compensation expense and non-cash income tax.
Please refer to the non-GAAP reconciliation table in our press release, before I turn it over to Clive. I’d like to apologize that we started the call a bit late and the press release went out a little later than usual. This morning NASDAQ briefly suspended the trading in our stock due to the fact that our EPS results exceeded expectation so we apologize for any inconvenience caused by that. So with that I will turn in over to Clive.
Thanks very much, Michael, and good morning to everybody. Our vision is to become leaders in the acute and intensive care medicine world wide, we can claim leadership when we deliver innovative products that save lives, reduce mobility, lower health system cost and lead in market share in leading hospital this is a serious business.
With Angiomax we’ve achieved that leadership in cardiac catheterization laboratories in United States and we are steadily expanding that business to deliver similar health and economic benefits to the 2650 leading hospitals in 25 countries world wide. We are also working on six other clinical stage products or compound that we believe have the potential to achieve, similar phase now comes to save their health care system money and lead segment market share just as Angiomax has already done.
We continue to search for other compounds or products that we can add to our portfolio, via self discovery or technology licensing program as an organization we are focused on delivering very high levels of productivity in terms of knowledge in that field. And high growth rate financial performance that delivers value to shareholders. It’s a good time for shareholders and investors to take another careful look at investing in our firm. In the third quarter, we moved through a strategic crossroads that we and many of you had been watching very closely. Now that Angiomax intellectual property challenges with the US government behind us we can refocus our commitment and resources 100% to developing medical solutions, improve outcomes of patients with life threatening conditions admitted to acute and intensive care units in hospitals.
We believe that our quest for leadership in acute and intensive care medicines can create significant value for shareholders first because this is an attractive global market segment concentrated growing quickly, high in potential value but short of authentic pharmaceutical innovation. Global demand for better more effective efficient care for patients with ischemic heart disease including heart attacks and for those with strokes in serious hospital infection will continue to increase.
Second, because we have proven our ability to deliver valuable innovation into the competitive US market place with Angiomax. We believe that product will continue to grow in the US and that we will steadily build worldwide presence. Third, on top of this core business and portfolio of one approved and five development stage products and compounds uniquely address the needs and opportunities of this highly expert markets. And we believe we have the skills, knowledge and resources to identify, understand and meet those needs.
The portfolio news flow over the next months and years will be exciting. Fourth, because we are building an increasingly efficient and productive commercial organization able to influence positive health and economic changes in the hospital segments where we choose to compete. Looking ahead, we don’t need major expansion of our SG&A expenditures to serve these attractive global markets with multiple products. To reach 80% of the market we need to reach just 2650 hospitals and about 600 hospital systems in 25 countries. And finally because our program of execution is expected to drive revenue growth and even after royalty payments partners robust investments in R&D to the tune of 20% of revenue, we aim for attractive rates of growth in cash flow and profits for the foreseeable future.