Medicines Co. declared its results for the quarter ended December 2011. Shares of the drug maker soared on the news of excellent results. The company earned $19.6 million, or 36 cents per share, in the three months that ended Dec. 31. That compares to earnings of $58.6 million, or $1.09 per share, in the final quarter of 2010, which benefited from a sizable income tax benefit. Adjusted earnings were 52 cents per share, up from 30 cents per share in the year-earlier quarter. Revenue rose more than 10 percent to $132.2 million. The results have been better than the analyst’s expectations. Shares of the stock rose by almost 3 percent on the trading session.
The company product mix has helped it to achieve good sales over the quarter. Its top product angiomax saw revenue growth of over 11 percent. The company has been also incurring expenditure on research and development. Around 25 percent of the expenses have been utilized in the research and development. For the full year, Medicines Co. earned $127.9 million, or $2.35 per share, up from $104.6 million, or $1.97 per share, in 2010.
Chief Financial Officer Glenn Sblendorio said, “We sustained consistent growth in the fourth quarter 2011, both on the revenue and profit target, and met all of our significant financial objectives in 2011. Our uniquely positioned business model is realizing significant progress in helping deliver acute intensive care in hospitals worldwide.”
We maintain a buy on the stock as the company again has good product mix. This will help the company over the future as it does not have to rely on generic drugs for revenue generation. Research and development focus will provide the company much needed traction for the future.