The Medicines Co. (MDCO) Q3 Loss Narrower Than Expected
Zacks Investment Research | Oct 26, 2016 10:33PM ET
The Medicines Company (NASDAQ:MDCO) reported a loss of 75 cents per share (including the impact of share-based compensation expenses) in the third quarter of 2016, significantly narrower than both the Zacks Consensus Estimate of a loss of $1.38 and the year-ago loss of 94 cents.
Meanwhile, quarterly revenues tanked 34.3% year over year to $37.6 million. Reported revenues were, however, slightly above the Zacks Consensus Estimate of $37 million. Net revenues for the quarter included royalty revenues of $18.8 million derived from gross profit on authorized generic sales of Angiomax by Novartis AG’ (NYSE:NVS) generic arm, Sandoz.
Quarter in Detail
Worldwide sales of Angiomax were down 54.7% to $10.2 million during the reported quarter. In the U.S., the product’s sales plunged 56.4% to $8.2 million, reflecting the Jul 2015 loss of exclusivity.
Sales of other products like Minocin, Orbactiv, Ionsys and the recently divested non-core cardiovascular products were $8.7 million, down 14.7%.
While adjusted research & development (R&D) expenses decreased 14.1% to $22.5 million, adjusted selling, general and administrative (SG&A) spend were down 32.2% to $48.4 million.
2016 Guidance
The company maintained its net revenue guidance in the range of $160–$170 million. R&D expenditures are now expected in the range of $118 million to $128 million on an adjusted basis, narrower that its earlier guidance of $128–$138 million. SG&A are now anticipated in the range of $239 million to $249 million, again narrower than the prior expectations of $247–$257 million.
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