The Medicines Company (MDCO - Free Report) reported first quarter earnings of 24 cents per share, compared with the year-ago earnings of 14 cents per share.
Including one-time items, the company reported a loss of 21 cents per share compared to the year-ago earnings of 14 cents per share. The Zacks Consensus Estimate for the first quarter of 2013 was a loss of 27 cents. First quarter 2013 revenues increased 23% year over year to $155.8 million, in line with the Zacks Consensus Estimate.
The Quarter in Detail
Angiomax US sales increased 14% to $131.3 million. Ex-US sales of Angiomax increased 9% to $11.6 million during the quarter. The Medicines Company reported an increase in market share in the low risk percutaneous coronary intervention (PCI) segment in the US. We note that the company took a price increase of 7% for Angiomax in January.
Recothrom sales in the US were $8.6 million. The Medicines Company started selling Recothrom from Feb 8, 2013 under its collaboration with Bristol-Myers Squibb (BMY - Free Report) .
Adjusted research and development expenses during the quarter decreased 2.2% to $32.1 million.
Adjusted selling, general and administrative expenses increased 28.4% to $55.5 million for the quarter.
The Medicines Company remains on track to achieve net revenue growth of 20%−22% in 2013. The Medicines Company intends to seek marketing approval for Cangrelor in the US in the second quarter of 2013 and in the EU by year end. The company will seek approval for Cangrelor for all PCIs in all patient subgroups and in patients who require bridging from oral antiplatelet therapy before surgery.
Meanwhile, results on oritavancin from the SOLO-II study should be out by mid-2013. Positive results from the SOLO-I study were presented in Dec 2012. Oritavancin is being developed for the treatment of acute bacterial skin and skin structure infections (ABSSSI) caused by susceptible grampositive bacteria, including methicillin-resistant staphylococcus aureus (MRSA).
However, the delay in Medicines Company’s plans for filing for US approval of Ionsys is disappointing. Ionsys is a compact, disposable, needleless patient-controlled analgesia (PCA) system which is being developed for the short-term management of acute postoperative pain in the hospital setting.
The Medicines Company said that it is upgrading the integrated electronics and software prior to filing so as to improve the reliability and safety of the device. As a result, the company now expects to file for approval in the US in early 2014 instead of late 2013. The EU marketing application will be filed shortly after the filing of the US application.
The Medicines Company currently carries a Zacks Rank #2 (Buy). We expect Angiomax to continue performing well. Moreover, we are pleased to see management actively pursuing in-licensing deals and acquisitions to drive growth.
Companies that currently look well-positioned include Athersys, Inc. (ATHX - Free Report) and Cleveland BioLabs, Inc. . Both are Zacks Rank #1 (Strong Buy) stocks.