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Medicines Company's (MDCO) Q1 Loss Widens, Revenues Tank Y/Y
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The Medicines Company incurred first-quarter 2018 loss of 76 cents per share, wider than the Zacks Consensus Estimate of a loss of 71 cents and the year-ago figure of a loss of 75 cents.
Shares of The Medicines Company decreased more than 2% on Apr 25 following the release of weak earnings results. The same has also underperformed the industry in a year’s time with the stock having lost 38.3%, wider than the industry’s decrease of 9.7%.
Quarterly revenues plunged 55.4% year over year to $7.8 million. Also, the top line missed the Zacks Consensus Estimate of $9 million. This downside in the quarter under review is mainly attributable to lower sales of the company’s marketed drug, Angiomax.
Notably, in January 2018, The Medicines Company completed the sale of its infectious disease business unit to Melinta Therapeutics, an antibiotics company. With this divestiture, the former sold the worldwide rights of Orbactiv, Minocin and the recently launched, Vabomere. This deal was executed for a consideration of a $215-million guaranteed cash and approximately, 3.3 million shares of Melinta’s common stock. The company is also entitled to receive tiered royalty payments of 5-25% on the worldwide net sales of the aforementioned drugs.
The Medicines Company’s adjusted research and development (R&D) expenses (excluding the impact of one-time items) increased 51% year over year to $39.1 million on higher spend in support of inclisiran. It is the company’s lead candidate, developed under a collaboration agreement with Alnylam Pharmaceuticals (ALNY - Free Report) for treating hypercholesterolemia.
We remind investors that last November, The Medicines Company along with Alnylam, initiated a phase III, ORION-11 study on inclisiran for treating patients with atherosclerotic cardiovascular disease (ASCVD) and an elevated LDL-cholesterol.
Subsequently, in January, The Medicines Company announced that the target enrollment of 1,500 patients in the ORION-11 study has been achieved ahead of schedule. The enrollment also exceeded the desirable patient count within 11 weeks, considerably beating its goal of 28 weeks.
The company anticipates submitting a regulatory filing for inclisiran in the United States and the EU by the end of 2019.
Adjusted selling, general and administrative (SG&A) expenses (excluding the impact of one-time items) declined 41% to $21.4 million.
The Medicines Company Price, Consensus and EPS Surprise
Ligand’s earnings per share estimates have moved north from $3.92 to $4.40 for 2018 and from $4.75 to $5.32 for 2019 in the last 60 days. The company delivered a positive surprise in three of the trailing four quarters with an average beat of 24.88%. Share price of the company has surged 42.6% over a year.
Infinity’s loss per share estimates have narrowed from $1.69 to 74 cents for 2018 and from 94 cents to 66 cents for 2019 in the last 60 days. The company delivered a positive surprise in three of the last four quarters with an average beat of 7.87%.
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Medicines Company's (MDCO) Q1 Loss Widens, Revenues Tank Y/Y
The Medicines Company incurred first-quarter 2018 loss of 76 cents per share, wider than the Zacks Consensus Estimate of a loss of 71 cents and the year-ago figure of a loss of 75 cents.
Shares of The Medicines Company decreased more than 2% on Apr 25 following the release of weak earnings results. The same has also underperformed the industry in a year’s time with the stock having lost 38.3%, wider than the industry’s decrease of 9.7%.
Quarterly revenues plunged 55.4% year over year to $7.8 million. Also, the top line missed the Zacks Consensus Estimate of $9 million. This downside in the quarter under review is mainly attributable to lower sales of the company’s marketed drug, Angiomax.
Notably, in January 2018, The Medicines Company completed the sale of its infectious disease business unit to Melinta Therapeutics, an antibiotics company. With this divestiture, the former sold the worldwide rights of Orbactiv, Minocin and the recently launched, Vabomere. This deal was executed for a consideration of a $215-million guaranteed cash and approximately, 3.3 million shares of Melinta’s common stock. The company is also entitled to receive tiered royalty payments of 5-25% on the worldwide net sales of the aforementioned drugs.
The Medicines Company’s adjusted research and development (R&D) expenses (excluding the impact of one-time items) increased 51% year over year to $39.1 million on higher spend in support of inclisiran. It is the company’s lead candidate, developed under a collaboration agreement with Alnylam Pharmaceuticals (ALNY - Free Report) for treating hypercholesterolemia.
We remind investors that last November, The Medicines Company along with Alnylam, initiated a phase III, ORION-11 study on inclisiran for treating patients with atherosclerotic cardiovascular disease (ASCVD) and an elevated LDL-cholesterol.
Subsequently, in January, The Medicines Company announced that the target enrollment of 1,500 patients in the ORION-11 study has been achieved ahead of schedule. The enrollment also exceeded the desirable patient count within 11 weeks, considerably beating its goal of 28 weeks.
The company anticipates submitting a regulatory filing for inclisiran in the United States and the EU by the end of 2019.
Adjusted selling, general and administrative (SG&A) expenses (excluding the impact of one-time items) declined 41% to $21.4 million.
The Medicines Company Price, Consensus and EPS Surprise
The Medicines Company Price, Consensus and EPS Surprise | The Medicines Company Quote
Zacks Rank & Key Picks
The Medicines Company carries a Zacks Rank #4 (Sell).
Two better-ranked stocks in the health care sector are Ligand Pharmaceuticals Incorporated (LGND - Free Report) and Infinity Pharmaceuticals, Inc. , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ligand’s earnings per share estimates have moved north from $3.92 to $4.40 for 2018 and from $4.75 to $5.32 for 2019 in the last 60 days. The company delivered a positive surprise in three of the trailing four quarters with an average beat of 24.88%. Share price of the company has surged 42.6% over a year.
Infinity’s loss per share estimates have narrowed from $1.69 to 74 cents for 2018 and from 94 cents to 66 cents for 2019 in the last 60 days. The company delivered a positive surprise in three of the last four quarters with an average beat of 7.87%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>