UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2004
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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 October 29, 2004, there were 48,114,181 shares of Common Stock, $0.001 par value per share, outstanding.
THE MEDICINES COMPANY
TABLE OF CONTENTS
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Part I. Financial Information |
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Item 1 - Unaudited Condensed Consolidated Financial Statements |
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Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3 - Quantitative and Qualitative Disclosures About Market Risk |
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Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds |
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THE MEDICINES COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
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September 30, |
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December 31, |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
25,460,010 |
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$ |
43,401,610 |
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Available for sale securities |
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111,468,785 |
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92,462,883 |
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Accrued interest receivable |
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672,626 |
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990,824 |
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Accounts receivable, net of allowances of approximately $1.65 million and $2.23 million at September 30, 2004 and December 31, 2003, respectively |
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29,068,291 |
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15,660,148 |
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Inventory |
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20,356,075 |
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11,459,771 |
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Prepaid expenses and other current assets |
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1,539,128 |
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976,258 |
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Total current assets |
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188,564,915 |
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164,951,494 |
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Fixed assets, net |
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1,536,663 |
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1,510,706 |
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Other assets |
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160,614 |
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200,265 |
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Total assets |
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$ |
190,262,192 |
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$ |
166,662,465 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
1,494,321 |
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$ |
7,274,943 |
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Accrued expenses |
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25,776,696 |
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17,951,845 |
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Total current liabilities |
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27,271,017 |
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25,226,788 |
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Deferred revenue |
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3,612,428 |
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1,270,833 |
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Commitments and contingencies |
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— |
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— |
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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, $.001 par value per share, 75,000,000 shares authorized at September 30, 2004 and December 31, 2003; 47,990,378 and 47,443,902 issued and outstanding at September 30, 2004 and December 31, 2003, respectively |
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47,990 |
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47,444 |
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Additional paid-in capital |
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461,354,423 |
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454,804,001 |
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Deferred compensation |
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— |
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(744,107 |
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Accumulated deficit |
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(301,812,609 |
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(314,144,531 |
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Accumulated other comprehensive income/(loss) |
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(211,057 |
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202,037 |
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Total stockholders’ equity |
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159,378,747 |
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140,164,844 |
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Total liabilities and stockholders’ equity |
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$ |
190,262,192 |
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$ |
166,662,465 |
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See accompanying notes to unaudited condensed consolidated financial statements.
1
THE MEDICINES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
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Three Months Ended September 30, |
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Nine Months Ended September 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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$ |
37,714,796 |
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$ |
21,248,027 |
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$ |
103,385,854 |
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$ |
56,702,827 |
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Operating expenses: |
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Cost of revenue |
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9,147,602 |
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6,602,543 |
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20,328,546 |
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19,835,063 |
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Research and development |
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12,331,830 |
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9,382,934 |
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34,182,908 |
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24,835,640 |
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Selling, general and administrative |
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11,353,209 |
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11,834,740 |
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37,599,126 |
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32,190,894 |
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Total operating expenses |
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32,832,641 |
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27,820,217 |
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92,110,580 |
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76,861,597 |
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Income/(loss) from operations |
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4,882,155 |
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(6,572,190 |
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11,275,274 |
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(20,158,770 |
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Other income |
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516,011 |
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409,962 |
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1,475,145 |
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993,426 |
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Income/(loss) before income taxes |
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5,398,166 |
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(6,162,228 |
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12,750,419 |
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(19,165,344 |
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Provision for Income taxes |
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(136,742 |
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(418,497 |
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Net income/(loss) |
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$ |
5,261,424 |
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$ |
(6,162,228 |
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$ |
12,331,922 |
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$ |
(19,165,344 |
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Basic earnings/(loss) per common share |
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$ |
0.11 |
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$ |
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