UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2004
Commission File Number 000-31191
The Medicines Company
(Exact Name of Registrant as Specified in Its Charter)
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Delaware |
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04-3324394 |
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(State or Other
Jurisdiction of |
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(I.R.S. Employer |
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8 Campus Drive, Parsippany, NJ |
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07054 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code: (973) 656-1616 |
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of the latest practicable date: As of July 30, 2004, there were 47,852,980 shares of Common Stock, $0.001 par value per share, outstanding.
THE
MEDICINES COMPANY
TABLE OF CONTENTS
THE MEDICINES COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
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June 30, |
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December 31, |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
12,626,268 |
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$ |
43,401,610 |
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Available for sale securities |
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115,462,485 |
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92,462,883 |
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Accrued interest receivable |
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1,011,335 |
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990,824 |
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Accounts receivable, net of allowances of approximately $3.24 million and $2.23 million at June 30, 2004 and December 31, 2003 |
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33,148,992 |
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15,660,148 |
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Inventory |
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14,708,148 |
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11,459,771 |
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Prepaid expenses and other current assets |
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965,682 |
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976,258 |
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Total current assets |
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177,922,910 |
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164,951,494 |
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Fixed assets, net |
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1,306,451 |
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1,510,706 |
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Other assets |
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160,614 |
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200,265 |
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Total assets |
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$ |
179,389,975 |
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$ |
166,662,465 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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— |
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Current liabilities: |
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— |
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Accounts payable |
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$ |
2,601,007 |
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$ |
7,274,943 |
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Accrued expenses |
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21,137,006 |
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17,951,845 |
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Total current liabilities |
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23,738,013 |
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25,226,788 |
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Deferred revenue |
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3,708,333 |
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1,270,833 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, $1.00 par value per share, 5,000,000 shares authorized; no shares issued and outstanding |
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— |
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— |
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Common stock, $.001 par value per share, 75,000,000 shares authorized at June 30, 2004 and December 31, 2003, respectively; 47,807,882 and 47,443,902 issued and outstanding at June 30, 2004 and December 31, 2003, respectively |
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47,808 |
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47,444 |
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Additional paid-in capital |
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459,290,188 |
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454,804,001 |
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Deferred compensation |
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(5,542 |
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(744,107 |
) |
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Accumulated deficit |
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(307,074,033 |
) |
(314,144,531 |
) |
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Accumulated other comprehensive income/(loss) |
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(314,792 |
) |
202,037 |
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Total stockholders’ equity |
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151,943,629 |
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140,164,844 |
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Total liabilities and stockholders’ equity |
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$ |
179,389,975 |
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$ |
166,662,465 |
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See accompanying notes to condensed consolidated financial statements.
1
THE MEDICINES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
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Three months ended June 30, |
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Six months ended June 30, |
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2004 |
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2003 |
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2004 |
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2003 |
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Net revenue |
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$ |
34,387,290 |
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$ |
18,749,508 |
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$ |
65,671,058 |
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$ |
35,454,800 |
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Operating expenses: |
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Cost of revenue |
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7,174,142 |
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6,969,765 |
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11,180,944 |
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13,232,520 |
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Research and development |
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12,029,081 |
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8,202,309 |
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21,851,078 |
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15,452,706 |
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Selling, general and administrative |
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12,670,867 |
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10,576,938 |
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26,245,917 |
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20,356,154 |
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Total operating expenses |
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31,874,090 |
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25,749,012 |
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59,277,939 |
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49,041,380 |
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Income/(loss) from operations |
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2,513,200 |
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(6,999,504 |
) |
6,393,119 |
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(13,586,580 |
) |
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Other income |
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487,005 |
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412,031 |
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959,134 |
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583,464 |
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Income/(loss) before income taxes |
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3,000,205 |
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(6,587,473 |
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7,352,253 |
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(13,003,116 |
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Provision for Income taxes |
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(159,329 |
) |
— |
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(281,755 |
) |
— |
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Net income/(loss) |
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$ |
2,840,876 |
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$ |
(6,587,473 |
) |
$ |
7,070,498 |
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$ |
(13,003,116 |
) |
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Basic earnings/(loss) per common share |
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$ |
0.06 |
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$ |
(0.14 |
) |
$ |
0.15 |
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$ |
(0.30 |
) |