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Medicines Company (MDCO) Reports Q3 Loss, Revenues Miss

The Medicines Company MDCO reported third-quarter 2017 loss of $1.19 per share. The Zacks Consensus Estimate stood at a loss of $1.46 per share.

However, excluding the impact of one-time items, adjusted loss per share came in at 42 cents, narrower than the year-ago loss of $1.23.

The Medicines Company’s shares have underperformed the industry so far this year. The stock has lost 4.6% versus the industry’s registered increase of 6.9%.

Quarterly revenues plunged 55% year over year to $16.9 million. Reported revenues also missed the Zacks Consensus Estimate of $22 million. This decrease in revenue in the reported quarter is mainly attributable to lower sales of the company’s marketed drug, Angiomax, due to its loss of exclusivity and increased generic competition. Incidentally, an amount of $2 million was also recorded in the third quarter of 2016, related to divestiture of non-core cardiovascular products, which had inflated the revenue in that particular quarter.

Quarter in Detail

Net revenue for the quarter included royalty revenues from the authorized generic sales of Angiomax by Novartis AG's NVS generic arm, Sandoz, and net product sales of Angiomax. Total Angiomax revenues slumped 72.7% to $7.9 million in the reported quarter.

Sales of other products like Minocin and Orbactiv surged 38% to $9 million compared with the year-ago sales of $6.5 million.

The Medicines Company’s research and development (R&D) expenses skyrocketed 94.8% year over year to $45.8 million due to higher spend in support of Inclisiran.

Selling, general and administrative (SG&A) expenses dropped 31.6% to $47.2 million.

Recent Approval

In August, The Medicines Company announced that the FDA has granted an accelerated approval to Vabomere, a combination of meropenem and vaborbactam, for treating complicated urinary tract infections (cUTI), including the pyelonephritis. It is currently under review in the EU.

Pipeline Updates

In August, The Medicines Company and Alnylam Pharmaceuticals ALNY announced new one-year safety and efficacy data from the ongoing phase II study, ORION-1, evaluating pipeline candidate, Inclisiran, for the treatment of hypercholesterolemia. This new data reaffirmed the earlier results from the ORION-1 study, demonstrating significant reductions of LDL-C (low-density lipoprotein) or bad cholesterol at six months and one year. The company expects to initiate a phase III study on the candidate next week.

The Medicines Company Price, Consensus and EPS Surprise

The Medicines Company Price, Consensus and EPS Surprise | The Medicines Company Quote

Zacks Rank & Key Picks

The Medicines Company currently carries a Zacks Rank #4 (Sell). A better-ranked stock in the healthcare sector is Novo Nordisk A/S NVO, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Novo Nordisk’s earnings per share estimates have moved up $2.37 to $2.39 for 2017 and from $2.51 to $2.54 for 2018 over the last 60 days. The company came up with positive earnings surprises in three of the trailing four quarters with an average beat of 3.63%. The share price of the company has soared 39.8% year to date.

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