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Medicines Company (MDCO) Q4 Loss Narrower than Expected

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The Medicines Company MDCO reported a loss of $1.29 per share (including the impact of share-based compensation expenses) in the fourth quarter of 2016, narrower than Zacks Consensus Estimate of a loss of $1.43. The quarterly loss, however, widened from the year-ago loss of 95 cents per share.

So far this year, The Medicines Company’s shares significantly outperformed Zacks classified Medical-Biomedical and Genetics industry. Specifically, the company’s shares gained 54.4%, while the industry registered an increase of 8.7%.



Quarterly revenues plunged 62.5% year over year to $25.2 million. Reported revenues also missed the Zacks Consensus Estimate of $28.1 million. Net revenue for the quarter included royalty revenues of $9.1 million due to gross profit on authorized generic sales of Angiomax by Novartis AG’ NVS generic arm, Sandoz. Royalty revenues from Angiomax of $9.1 million were significantly lower than the year-ago figure of $29.4 million.

Quarter in Detail

Worldwide sales of Angiomax were $7.8 million during the reported quarter, significantly lower than the year-ago sales of $23.2 million. In the U.S., sales of the product plunged 41.8% to $5.5 million owing to the Jul 2015 loss of exclusivity.

Sales of other products like Minocin, Orbactiv, Ionsys and the recently divested non-core cardiovascular products were $8.3 million, down 43.2% year over year.

2016 Results

Full-year sales decreased significantly to $167.8 million from $309 million a year ago. Sales missed the Zacks Consensus Estimate of $170.8 million.

Full-year loss of $3.99 per share was significantly narrower than Zacks Consensus Estimate of a loss of $5.45 per share. The company had incurred a loss of $2.73 per share in the previous year.

Pipeline Updates

In Nov 2016, The Medicines Company announced positive top-line results from a Day 180 interim analysis of the ongoing ORION-1 phase II study on its pipeline candidate, Inclisiran. The drug is being evaluated for the treatment of hypercholesterolemia. Interim data demonstrated that Inclisiran led to a significant and durable reduction of LDL (low-density lipoprotein) cholesterol up to Day 210. Inclisiran was well tolerated throughout the study, with infrequent and mild or moderate injection site reactions.

Moreover, during the quarter the company announced impressive results from the TANGO 1 phase III study of Carbavance (meropenem-vaborbactam) in patients with complicated urinary tract infection. The new drug application (NDA) filing for Carbavance in Feb 2017 was accepted by the FDA for priority review.

The Medicines Company Price, Consensus and EPS Surprise

 

The Medicines Company Price, Consensus and EPS Surprise | The Medicines Company Quote

Zacks Rank & Key Picks

Medicines Company currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Celgene Corporation and Sunesis Pharmaceuticals, Inc. SNSS. Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Celgene’s earnings per share estimates increased from $6.52 to $6.60 for 2017 and from $8.15 to $8.16 for 2018 over the last 60 days. The company posted positive earnings surprises in three of the four trailing quarters with an average beat of 5.08%.

Sunesis’ loss per share estimates narrowed from $2.57 to $2.44 for 2016 and from $2.16 to $1.97 for 2017 over the last 60 days. The company posted positive earnings surprises in three of the four trailing quarters with an average beat of 0.54%.

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