Medicines Co. net income rises, but shares fall

Medicines Co. 2nd-quarter net income rises 32 percent but is shy of Wall Street estimates

Associated Press

PARSIPPANY, N.J. (AP) -- The Medicines Co. said Wednesday its net income grew 32 percent in the second quarter as sales of its drugs increased and research costs fell.

Its profit came in shy of Wall Street's forecasts and its shares slumped $1.58, or 5.1 percent, to close at $29.73.

The company said U.S. sales of its anti-clotting drug Angiomax grew 14 percent to $137.9 million. International sales also improved, and the company reported $17.9 million in U.S. sales of Recothrom, an anti-bleeding drug it licensed from Bristol-Myers Squibb Co. in December.

The company said its net income grew to $18.1 million, or 30 cents per share, from $13.8 million, or 25 cents per share. Revenue rose 27 percent, to $172.8 million from $135.7 million

Analysts were expecting net income of 32 cents per share and $168.9 million in revenue, according to FactSet.

Medicine Co.'s research and development costs declined after it finished testing its anti-clotting drug. The Food and Drug Administration is reviewing its application for marketing approval, and the company expects a decision in the second quarter of 2014.

The company maintained its revenue guidance, saying sales will grow 20 to 22 percent for the year. That implies a total of $670.3 million to $681.5 million, and analysts expect $686.7 million on average.

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