PARSIPPANY, N.J.--(BUSINESS WIRE)--The Medicines Company (NASDAQ: MDCO) today reported its financial results for the third quarter ended September 30, 2017, and provided an update on its clinical and operational activities.
“We made significant clinical and strategic progress during the third quarter,” said Clive Meanwell, M.D., Ph.D., Chief Executive Officer of The Medicines Company. “We aggressively advanced start-up work for the inclisiran Phase III clinical program, preparing investigational sites–which began screening patients in September–and manufacturing double-blind-packaged drug supply, and are pleased to announce that dosing of patients in the Phase III LDL-C lowering program will commence next week. We remain confident that all trials comprising the inclisiran LDL-C lowering program will commence before year-end. Turning to our process to monetize our Infectious Disease Business (ID Business), we continue to expect to announce a transaction to divest the business before the end of the year. In the meantime, independent of that transaction, we are finalizing plans to significantly restructure the remainder of The Medicines Company. We anticipate that the restructuring, which we intend to substantially implement within the next 45 days, will reduce headcount to less than 60 people at The Medicines Company (excluding the ID Business), significantly reducing go-forward annual operating expenses. As indicated in our strategic plans previously disclosed, we believe that the restructuring, when taken together with the anticipated disposition of our ID Business, will provide the Company with a strong financial position from which to aggressively advance the inclisiran development program to anticipated readout of final data from the Phase III LDL-C lowering trials in the second half of 2019. We expect to provide further information regarding the restructuring plan and its implementation in our third quarter Form 10-Q.”
Third-Quarter 2017 Highlights
Inclisiran (PCSK9 synthesis inhibitor)
- On August 28, 2017, new, one-year data from the ORION-1 Phase II study of inclisiran was presented in the “Hot Line – Late-Breaking Clinical Trials 2” session at the European Society of Cardiology (ESC) Congress 2017. Efficacy data presented reaffirmed inclisiran’s significant LDL-C lowering effects following a starting dose of 300 mg given on Day-1 and Day-90, after which the mean LDL-C reduction was 56% at Day-150 and 51% at Day-180. For the subsequent six-month period – from Day-90 to Day-270 – the time-averaged LDL-C reduction was 51%, with minimum intra-patient variability over time (all comparisons to placebo P <0.0001). These robust data underscore the selection of a six-monthly maintenance dose of 300 mg in the inclisiran Phase III clinical program. With completion of one-year follow-up, safety data for inclisiran from the Phase II ORION-1 study now include 370 subject-years of observation, including at least 300 subject-years of inclisiran effects. As in prior analyses, no material safety issues were observed on inclisiran, which continued to demonstrate an adverse event profile similar to placebo. There were no deaths or serious adverse events during the extended observation period. In particular, in spite of the prolonged LDL-C lowering effects of inclisiran, there were no investigational drug-related elevations of liver enzymes and no neuropathy, change in renal function, thrombocytopenia or anti-drug antibodies during extended follow-up, or at any earlier time periods in the ORION-1 study.
VABOMERE™
- On August 29, 2017, the U.S. Food and Drug Administration (FDA) approved VABOMERE (meropenem-vaborbactam) for injection for the treatment of adult patients with complicated urinary tract infections (cUTI), including pyelonephritis, caused by designated susceptible Enterobacteriaceae – Escherichia coli, Klebsiella pneumoniae and Enterobacter cloacae species complex.
-
At IDWeek 2017 in October, the Company presented new data on
VABOMERE, including results from the landmark TANGO II study of
VABOMERE versus “best available therapy” (BAT) in the treatment of
suspected or documented infections due to carbapenem-resistant
Enterobacteriaceae (CRE). Highlights from the posters on the TANGO II
study included:
- VABOMERE was associated with a higher clinical cure versus BAT in patients with a baseline organism that was CRE (mCRE-MITT population) at both end-of-therapy (EOT) (VABOMERE 64.3% vs. BAT 33.3%; p=0.04) and test-of-cure (TOC) (VABOMERE 57.1% vs. BAT 26.7%; p=0.04). In immunocompromised patients, VABOMERE was also associated with a higher clinical cure versus BAT at EOT (VABOMERE 60% vs. BAT 12.5%; p<0.01), and a relative mortality benefit of 46.7%.
- In further exploratory analyses, VABOMERE was associated with a relative mortality benefit of 84% (p = 0.03) compared to BAT when excluding patients with previous antibiotic failures.
Sensitivity Analysis of Clinical Cure at TOC and All-Cause
Mortality at Day 28 Across All |
|||||||||
M-V N=19 n (%) |
BAT N=15 n (%) |
Absolute Difference |
P value |
Relative |
|||||
Patients with All Infection Types | |||||||||
Clinical Cure at TOC | 13 (68.4) | 4 (26.7) | 41.8 (11.1 to 72.4) | 0.008 | 156.2 | ||||
Day-28 All-cause Mortality | 1 (5.3) | 5 (33.3) | -28.1 (-54.0 to -2.2) | 0.03 | -84.1 | ||||
- VABOMERE was associated with decreased nephrotoxicity and significantly fewer treatment-related adverse events versus BAT.
- An analysis using the composite endpoints of clinical failure or nephrotoxicity demonstrated a risk-benefit profile favoring VABOMERE versus BAT (VABOMERE 32.1% vs BAT 80.0% (95% CI: −74.5 to −21.2; P< 0.001)).
- In July 2017, the Company announced randomization in the TANGO II trial was stopped early following a recommendation by the TANGO II independent Data and Safety Monitoring Board (DSMB) based on an analysis of 72 patients, including 43 patients with microbiologically evaluable CRE infections of blood, lung, urinary tract and abdominal organs. The DSMB concluded that a risk-benefit analysis of available data no longer supported randomization of additional patients to the best available therapy comparator arm.
- VABOMERE is now available for pharmacies to order through wholesalers and usual distribution channels.
Third-Quarter 2017 Financial Summary from Continuing Operations
Worldwide
net revenue was $16.9 million in the third quarter of 2017 compared to
$37.6 million in the third quarter of 2016. Included in total net
revenue for the third quarter of 2017 and 2016 was $7.9 million and
$28.9 million, respectively, of total Angiomax revenue, including both
royalty revenues derived from the gross profit on authorized generic
sales of Angiomax® (bivalirudin) by Sandoz, Inc. and worldwide
Angiomax®/Angiox® (bivalirudin) net product sales. Other products
recorded aggregate sales of $9.0 million in the third quarter of 2017
compared to $6.7 million in the third quarter of 2016. Among these other
products, Minocin® (minocycline) for Injection and Orbactiv®
(oritavancin) recorded sales of $9.0 million in the third quarter of
2017 compared to $6.5 million in the third quarter of 2016, an increase
of 38%, predominantly driven by an increase in Orbactiv (oritavancin)
revenue of 57%, from $4.3 million in the third quarter of 2016 to $6.8
million in the third quarter of 2017. The third quarter of 2016 also
included $2.0 million of sales related to the divested non-core
cardiovascular products.
On a GAAP basis, net loss from continuing operations in the third quarter of 2017 was $30.2 million, or $0.42 per share, compared to $86.4 million, or $1.23 per share, in the third quarter of 2016. On a non-GAAP basis, adjusted net loss (1) from continuing operations in the third quarter of 2017 was $86.3 million, or $1.19(1) per share, compared to $44.8 million, or $0.64(1) per share, in the third quarter of 2016.
Third-Quarter 2016 Financial Summary from Discontinued Operations
In
the first quarter of 2016, the Company completed the divestiture of its
hemostasis products for an upfront payment of $174.1 million, and
potential milestone payments of up to an additional $235.0 million, in
the aggregate, following the achievement of certain specified net sales
milestones. Net income from discontinued operations in the third quarter
of 2016 was $0.1 million.
First Nine Months 2017 Financial Summary from Continuing Operations
Worldwide
net revenue was $59.8 million in the first nine months of 2017 compared
to $142.6 million in the first nine months of 2016. Included in total
net revenue for the first nine months of 2017 and 2016 was $35.9 million
and $104.9 million, respectively, of total Angiomax revenue, including
both royalty revenues derived from the gross profit on authorized
generic sales of Angiomax (bivalirudin) by Sandoz, Inc. and worldwide
Angiomax/Angiox (bivalirudin) net product sales. Other products,
including Minocin (minocycline) for Injection and Orbactiv
(oritavancin), recorded aggregate sales of $23.9 million in the first
nine months of 2017 compared to $17.4 million in the first nine months
of 2016. The first nine months of 2016 also included $20.3 million of
sales related to the divested non-core cardiovascular products.
On a GAAP basis, net loss from continuing operations in the first nine months of 2017 was $530.1 million, or $7.39 per share, compared to net income from continuing operations of $5.1 million, or $0.07 per share, in the first nine months of 2016. Included in net loss from continuing operations for the first nine months of 2017 were net charges of approximately $277.0 million associated with the discontinuation and market withdrawal of Ionsys (fentanyl iontophoretic transdermal system) in the U.S. market, and $27.3 million associated with the discontinuation of the clinical development program for MDCO-700, our investigational anesthetic agent. On a non-GAAP basis, adjusted net loss (1) from continuing operations in the first nine months of 2017 was $234.5 million, or $3.27(1) per share, compared to $164.2 million, or $2.35(1) per share, in the first nine months of 2016.
First Nine Months 2016 Financial Summary from Discontinued Operations
Net
loss from discontinued operations in the first nine months of 2016 was
$1.4 million, or $0.02 per share.
(1) Adjusted net loss and adjusted loss per share from continuing operations are non-GAAP financial performance measures with no standardized definitions under U.S. GAAP. For further information and a detailed reconciliation, refer to the “Non-GAAP Financial Performance Measures” and “Reconciliations of GAAP to Adjusted Net Loss and Adjusted Loss per Share” sections of this press release.
At September 30, 2017, the Company had a total of $208.9 million in cash and cash equivalents and available for sale securities.
Third-Quarter 2017 Conference Call and Webcast Information
The
Company will host a conference call and webcast today, October 25, 2017,
at 8:30 a.m., Eastern Daylight Time, to discuss its third-quarter 2017
financial results and provide clinical and operational updates. The
dial-in information to access the call is as follows:
U.S./Canada: (877) 359-9508
International: (224) 357-2393
Conference
ID: 9194649
A taped replay of the conference call will be available from 11:30 a.m., Eastern Daylight Time, today until 11:30 a.m., Eastern Daylight Time, on November 1, 2017. The replay may be accessed as follows:
U.S./Canada: (855) 859-2056
International: (404) 537-3406
Conference
ID: 9194649
The webcast can be accessed in the Investors section of The Medicines Company website. A replay of the webcast will also be available.
About VABOMERE™
VABOMERE™ (meropenem and vaborbactam) is
indicated for the treatment of patients 18 years of age and older with
complicated urinary tract infections (cUTI), including pyelonephritis,
caused by the following susceptible microorganisms: Escherichia coli,
Klebsiella pneumoniae, and Enterobacter cloacae species
complex.
To reduce the development of drug-resistant bacteria and maintain the effectiveness of VABOMERE and other antibacterial drugs, VABOMERE should be used only to treat or prevent infections that are proven or strongly suspected to be caused by susceptible bacteria.
For more information on VABOMERE, including its important safety information and package insert, please see www.vabomere.com.
About Inclisiran
Inclisiran (formerly known as PCSK9si and
ALN-PCSsc) is an investigational GalNAc-conjugated RNAi therapeutic
targeting PCSK9 – a genetically validated protein regulator of LDL
receptor metabolism – being developed for the treatment of
hypercholesterolemia. In contrast to anti-PCSK9 monoclonal antibodies
(MAbs) that bind to PCSK9 in blood, inclisiran is a first-in-class
investigational medicine that acts by turning off PCSK9 synthesis in the
liver.
The Medicines Company and Alnylam Pharmaceuticals, Inc. are collaborating in the advancement of inclisiran pursuant to their 2013 agreement. Under the terms of the agreement, Alnylam completed certain pre-clinical studies and the Phase I clinical study, with The Medicines Company leading and funding the development of inclisiran from Phase II forward, as well as potential commercialization.
About The Medicines Company
The Medicines Company is a
biopharmaceutical company driven by an overriding purpose – to save
lives, alleviate suffering and contribute to the economics of
healthcare. The Company’s mission is to create transformational
solutions to address the most pressing healthcare needs facing patients,
physicians and providers in serious infectious disease care and
cardiovascular care. The Company is headquartered in Parsippany, New
Jersey, with a global innovation center in California.
Forward-Looking Statements
Statements contained in this
press release that are not purely historical may be deemed to be
forward-looking statements for purposes of the safe harbor provisions
under The Private Securities Litigation Reform Act of 1995. Without
limiting the foregoing, the words "believes," "anticipates," "plans,"
"expects" and similar expressions, including the Company's preliminary
financial results, are intended to identify forward-looking statements.
These forward-looking statements involve known and unknown risks and
uncertainties that may cause the Company's actual results, levels of
activity, performance or achievements to be materially different from
those expressed or implied by these forward-looking statements.
Important factors that may cause or contribute to such differences
include whether the Company's product candidates will advance in the
clinical trials process on a timely basis or at all, or succeed in
achieving their specified endpoints; whether the Company will make
regulatory submissions for product candidates on a timely basis; whether
its regulatory submissions will receive approvals from regulatory
agencies on a timely basis or at all; whether the Company’s ongoing and
planned commercial launches will be successful; the extent of the
commercial success of our products; the Company's ability to penetrate
foreign markets; whether physicians, patients and other key decision
makers will accept clinical trial results; whether the Company can
protect its intellectual property; whether the Company will be able to
raise additional capital on favorable terms or at all when needed; and
such other factors as are set forth in the risk factors detailed from
time to time in the Company's periodic reports and registration
statements filed with the Securities and Exchange Commission, including,
without limitation, the risk factors detailed in the Company's Quarterly
Report on Form 10-Q filed with the SEC on August 9, 2017, which are
incorporated herein by reference. The Company specifically disclaims any
obligation to update these forward-looking statements.
NON-GAAP FINANCIAL PERFORMANCE MEASURES
In addition to
financial information prepared in accordance with U.S. GAAP, this press
release also contains adjusted net loss and adjusted loss per share from
continuing operations attributable to The Medicines Company. The Company
believes these measures provide investors and management with
supplemental information relating to operating performance and trends
that facilitate comparisons between periods and with respect to
projected information.
Adjusted net loss from continuing operations excludes share-based compensation expense, amortization of acquired intangible assets, asset impairment charges, inventory adjustments, restructuring charges, charges associated with product discontinuance, milestone payments, changes in contingent purchase price, expenses incurred for certain transactions, non-cash interest expense, gain on sale of assets, loss on repurchase of debt and net loss tax adjustments. The Company believes these non-GAAP financial measures help indicate underlying trends in the Company’s business and are important in comparing current results with prior period results and understanding projected operating performance. Non-GAAP financial measures provide the Company and its investors with an indication of the Company’s baseline performance before items that are considered by the Company not to be reflective of the Company’s ongoing results. See the attached Reconciliations of GAAP to Adjusted Net Loss and Adjusted Loss per Share for explanations of the amounts excluded and included to arrive at adjusted net loss and adjusted loss per share amounts for the three- and nine-month periods ended September 30, 2017 and 2016.
These adjusted measures are non-GAAP and should be considered in addition to, but not as a substitute for, the information prepared in accordance with U.S. GAAP. The Company strongly encourages investors to review its consolidated financial statements and publicly-filed reports in their entirety and cautions investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures.
THE MEDICINES COMPANY |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net product revenues | $ | 10,935 | $ | 18,843 | $ | 38,135 | $ | 80,542 | |||||||
Royalty revenues | 5,936 | 18,756 | 21,694 | 62,094 | |||||||||||
Total net revenues | 16,871 | 37,599 | 59,829 | 142,636 | |||||||||||
Operating expenses: | |||||||||||||||
Cost of product revenues | 9,601 | 20,777 | 39,436 | 54,804 | |||||||||||
Asset impairment charges | — | 329,097 | — | ||||||||||||
Research and development | 45,838 | 23,537 | 117,337 | 94,595 | |||||||||||
Selling, general and administrative | 47,198 | 69,022 | 159,980 | 242,478 | |||||||||||
Total operating expenses | 102,637 | 113,336 | 645,850 | 391,877 | |||||||||||
Loss from operations | (85,766 | ) | (75,737 | ) | (586,021 | ) | (249,241 | ) | |||||||
Co-promotion and license income | 769 | 757 | 2,283 | 3,073 | |||||||||||
Gain on sale of assets | — | — | — | 288,301 | |||||||||||
Loss on extinguishment of debt | — | — | — | (5,380 | ) | ||||||||||
Interest expense | (11,886 | ) | (12,089 | ) | (36,898 | ) | (32,198 | ) | |||||||
Other (loss) income | 71 | 865 | 916 | 741 | |||||||||||
(Loss) income from continuing operations before income taxes | (96,812 | ) | (86,204 | ) | (619,720 | ) | 5,296 | ||||||||
Benefit (provision) for income taxes | 66,637 | (163 | ) | 89,607 | (220 | ) | |||||||||
Net (loss) income from continuing operations | (30,175 | ) | (86,367 | ) | (530,113 | ) | 5,076 | ||||||||
Income (loss) from discontinued operations, net of tax | — | 96 | — | (1,390 | ) | ||||||||||
Net (loss) income | (30,175 | ) | (86,271 | ) | (530,113 | ) | 3,686 | ||||||||
Net loss attributable to non-controlling interest | — | 13 | — | 50 | |||||||||||
Net (loss) income attributable to The Medicines Company | $ | (30,175 | ) | $ | (86,258 | ) | $ | (530,113 | ) | $ | 3,736 | ||||
Amounts attributable to The Medicines Company: | |||||||||||||||
Net (loss) income from continuing operations | $ | (30,175 | ) | $ | (86,354 | ) | $ | (530,113 | ) | $ | 5,126 | ||||
Income (loss) from discontinued operations, net of tax | — | 96 | — | (1,390 | ) | ||||||||||
Net (loss) income attributable to The Medicines Company | $ | (30,175 | ) | $ | (86,258 | ) | $ | (530,113 | ) | $ | 3,736 | ||||
Basic (loss) earnings per common share attributable to The Medicines Company: | |||||||||||||||
(Loss) earnings from continuing operations | $ | (0.42 | ) | $ | (1.23 | ) | $ | (7.39 | ) | $ | 0.07 | ||||
Loss from discontinued operations | — | — | — | (0.02 | ) | ||||||||||
Basic (loss) earnings per share |
$ | (0.42 | ) | $ | (1.23 | ) | $ | (7.39 | ) | $ | 0.05 | ||||
Diluted (loss) earnings per common share attributable to The Medicines Company: | |||||||||||||||
(Loss) earnings from continuing operations | $ | (0.42 | ) | $ | (1.23 | ) | $ | (7.39 | ) | $ | 0.07 | ||||
Loss from discontinued operations | — | — | — | (0.02 | ) | ||||||||||
Diluted (loss) earnings per share | $ | (0.42 | ) | $ | (1.23 | ) | $ | (7.39 | ) | $ | 0.05 | ||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 72,286 | 70,194 | 71,763 | 69,711 | |||||||||||
Diluted | 72,286 | 70,194 | 71,763 | 72,920 | |||||||||||
THE MEDICINES COMPANY |
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September 30, 2017 | December 31, 2016 | ||||
Cash and cash equivalents | $ | 166,734 | $ | 541,835 | |
Available for sale securities | $ | 42,168 | $ | — | |
Total assets | $ | 1,006,980 | $ | 1,705,211 | |
Convertible senior notes (due 2022 and 2023) | $ | 642,655 | $ | 677,333 | |
The Medicines Company stockholders' equity | $ | 188,055 | $ | 652,501 | |
THE MEDICINES COMPANY |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net (loss) income from continuing operations attributable to The |
$ | (30,175 | ) | $ | (86,354 | ) | $ | (530,113 | ) | $ | 5,126 | |||||
Before tax adjustments: | ||||||||||||||||
Cost of product revenues: | ||||||||||||||||
Share-based compensation expense | (1) | 205 | 195 | 613 | 691 | |||||||||||
Amortization of acquired intangible assets | (2) | 3,105 | 6,469 | 11,557 | 19,319 | |||||||||||
Inventory adjustments | (3) | (348 | ) | 6,460 | (3,531 | ) | 1,248 | |||||||||
Restructuring charges | (4) | 18 | 108 | (48 | ) | 383 | ||||||||||
Market withdrawal of Ionsys | (5) | — | — | 8,458 | — | |||||||||||
Asset impairment charges | ||||||||||||||||
Market withdrawal of Ionsys | (5) | — | — | 264,097 | — | |||||||||||
Discontinuance of MDCO 700 | (6) | — | — | 65,000 | — | |||||||||||
Research and development: | ||||||||||||||||
Share-based compensation expense | (1) | 1,332 | 916 | 3,888 | 2,923 | |||||||||||
Restructuring charges | (4) | (36 | ) | 91 | 359 | 1,451 | ||||||||||
Milestone payments | (7) | — | — | — | 11,000 | |||||||||||
Market withdrawal of Ionsys | (5) | — | — | 1,032 | — | |||||||||||
Selling, general and administrative: | ||||||||||||||||
Share-based compensation expense | (1) | 6,341 | 6,849 | 19,579 | 20,555 | |||||||||||
Restructuring charges | (4) | 1,110 | 1,447 | 1,007 | 14,445 | |||||||||||
Changes in contingent purchase price | (8) | (7,673 | ) | 12,393 | 4,234 | 14,346 | ||||||||||
Market withdrawal of Ionsys | (5) | — | — | 3,434 | — | |||||||||||
Discontinuance of MDCO 700 | (6) | — | — | (14,701 | ) | — | ||||||||||
Expenses incurred for certain transactions | (9) | — | — | — | 7,887 | |||||||||||
Other: | ||||||||||||||||
Non-cash interest expense | (10) | 6,504 | 6,622 | 20,326 | 19,392 | |||||||||||
Gain on sale of assets | (11) | — | — | — | (288,301 | ) | ||||||||||
Loss on extinguishment of debt | (12) | — | — | — | 5,380 | |||||||||||
Net loss tax adjustments | (13) | (66,713 | ) | 1 | (89,702 | ) | — | |||||||||
Net loss attributable to The Medicines Company - Adjusted | $ | (86,330 | ) | $ | (44,803 | ) | $ | (234,511 | ) | $ | (164,155 | ) | ||||
Net loss per share attributable to The Medicines Company - Adjusted |
||||||||||||||||
Basic | $ | (1.19 | ) | $ | (0.64 | ) | $ | (3.27 | ) | $ | (2.35 | ) | ||||
Diluted | $ | (1.19 | ) | $ | (0.64 | ) | $ | (3.27 | ) | $ | (2.35 | ) | ||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 72,286 | 70,194 | 71,763 | 69,711 | ||||||||||||
Diluted | 72,286 | 70,194 | 71,763 | 69,711 | ||||||||||||
Explanation of Adjustments:
(1) Excludes share-based compensation of $7,878 and $7,960 for the three
months ended September 30, 2017 and 2016 and $24,080 and $24,169 for the
nine months ended September 30, 2017 and 2016 because these expenses are
substantially dependent on changes in the market price of the Company's
common stock.
(2) Excludes amortization of intangible assets
resulting from transactions with Targanta, Incline Therapeutics and
Rempex.
(3) Excludes all non-cash inventory adjustments. Prior year
balances revised to reflect all non-cash inventory adjustments for the
respective periods.
(4) Excludes restructuring charges for the
workforce reorganization related to the sale of the non-core
cardiovascular products.
(5) Excludes charges associated with the
voluntary discontinuation and withdrawal of Ionsys from the market in
the United States and cessation of related commercial activities.
(6)
Excludes costs associated with the decision to discontinue the MDCO-700
program.
(7) Excludes upfront and milestone payments for research
and development collaboration arrangements and manufacturing scale up
for MDCO-216.
(8) Excludes changes in fair value of the contingent
price related to the acquisitions of Targanta, Incline Therapeutics,
Rempex and Annovation.
(9) Excludes transaction costs related to
the sale of the Non-Core ACC Products.(10) Excludes non-cash interest
expense which is in excess of the actual interest expense paid on the
Convertible Senior Notes.
(11) Excludes gain on the sale of the
Non-Core ACC Products.
(12) Excludes loss on the repurchase of
$220.0 million in aggregate principal amount of the 2017 Notes.
(13)
Net loss tax adjustments reflect the estimated tax effect of the costs
associated with the decision to discontinue the MDCO-700 program and the
amortization of Vabomere IPR&D.
In addition to the financial information prepared in accordance with U.S. GAAP, this press release also contains adjusted financial measures that the Company believes provide investors and management with supplemental information relating to operating performance and trends that facilitate comparisons between periods and with respect to projected information. These adjusted measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with U.S. GAAP. The Company strongly encourages investors to review its consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures.