The Medicines Company Reports Second Quarter and First Half 2008 Financial Results...

The Medicines Company Reports Second Quarter and First Half 2008 Financial Results and Raises Full Year Top Line Guidance

PARSIPPANY, N.J.--(Business Wire)--
The Medicines Company (NASDAQ: MDCO) today announced its financial
results for the second quarter and first half of 2008.

Financial highlights for the second quarter of 2008:

-- Net revenue increased by 54% to $86.7 million for the second
quarter of 2008 from $56.4 million for the second quarter of
2007.

-- Angiomax(R) (bivalirudin) U.S. sales increased by 53% to
$84.5 million for the second quarter of 2008 from $55.2
million for the second quarter of 2007.

-- Angiomax/Angiox international net revenue in the second
quarter of 2008 increased $1.0 million to $2.2 million
compared to $1.2 million in the second quarter of 2007.

-- Net income for the second quarter of 2008 was $4.1 million, or
$0.08 per share, compared to net income of $0.8 million, or
$0.02 per share, for the second quarter of 2007.

-- Excluding stock-based compensation expense and non-cash income
taxes, the Company reported second quarter of 2008 non-GAAP
net income of $14.5 million, or $0.28 per share, compared to
non-GAAP net income of $5.1 million, or $0.10 per share, for
the second quarter of 2007.

John Kelley, President and Chief Operating Officer, stated, "We
continue to execute our Angiomax strategy to gain market share and
further penetrate the PCI market. We look forward to hearing from the
FDA on our Cleviprex submission and continue to build our European
infrastructure which will lead to multiple revenue sources in the near
future."

Financial highlights for the first half of 2008:

-- Net revenue increased by 35% to $166.2 million for the first
half of 2008 from $123.0 million for the same period in 2007.

-- Angiomax U.S. sales increased by 33% to $161.4 million for
the first half of 2008 from $121.5 million for the first
half of 2007.

-- Angiomax/Angiox international net revenue in the first
half of 2008 increased $3.3 million to $4.8 million
compared to $1.5 million in the first half of 2007.

-- Net income for the first half of 2008 was $8.9 million, or
$0.17 per share, compared to net income of $3.9 million, or
$0.07 per share, for the first half of 2007.

-- Excluding stock-based compensation expense and non-cash income
taxes, the Company reported first half of 2008 non-GAAP net
income of $26.9 million, or $0.51 per share, compared to
non-GAAP net income of $13.3 million, or $0.25 per share, for
the first half of 2007.

The following table provides reconciliations between GAAP and
non-GAAP net income for the second quarter (Q2) and first half (1H) of
2008 and 2007. Non-GAAP net income excludes stock-based compensation
expense and the non-cash provision for income taxes:

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FAS 123R Non-Cash
Stock-Based Provision Non-GAAP
Reported GAAP Compensation for Income Net Income
(in millions) Net Income Expense Taxes (1)
--------------- -------------- ------------- ------------- -----------
Q2 2008 $4.1 $ 6.9 $3.6 $14.5
--------------- -------------- ------------- ------------- -----------
Q2 2007 $0.8 $ 3.7 $0.6 $ 5.1
1H 2008 $8.9 $11.4 $6.6 $26.9
--------------- -------------- ------------- ------------- -----------
1H 2007 $3.9 $ 7.2 $2.2 $13.3
*T

Note: Amounts may not sum due to rounding.

(1)Excluding stock-based compensation expense and the non-cash
provision for income taxes

Reconciliations between GAAP and non-GAAP fully diluted earnings
per share (EPS) for the second quarter (Q2) and first half (1H) of
2008 and 2007 are provided in the following table:

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FAS 123R Stock-
Based Non-Cash
Reported Compensation Provision for Non-GAAP
(per share) GAAP EPS Expense Income Taxes EPS(1)
----------------- --------- --------------- -------------- -----------
Q2 2008 $0.08 $0.13 $0.07 $0.28
----------------- --------- --------------- -------------- -----------
Q2 2007 $0.02 $0.07 $0.01 $0.10
1H 2008 $0.17 $0.22 $0.13 $0.51
----------------- --------- --------------- -------------- -----------
1H 2007 $0.07 $0.14 $0.04 $0.25
*T

Note: Amounts may not sum due to rounding.

(1)Excluding stock-based compensation expense and the non-cash
provision for income taxes

The Company believes that presenting the non-GAAP information
contained in the financial tables and in this press release assists
investors and others in gaining a better understanding of the
Company's core operating results and future prospects, expected growth
rates or forecasted guidance, particularly as related to stock-based
compensation expense and the non-cash provision for income taxes.
Management uses this non-GAAP information, in addition to the GAAP
information, as the basis for measuring the Company's core operating
performance and comparing such performance to that of prior periods
and to the performance of its competitors. Such measures are also used
by management in its financial and operating decision-making. Non-GAAP
information is not meant to be considered superior to or a substitute
for the Company's results of operations prepared in accordance with
GAAP. A reconciliation of GAAP results with non-GAAP results may also
be found in the attached financial tables.

Revised 2008 Guidance

Based upon results of the first half of 2008, the Company provided
revised 2008 guidance as follows:

-- Full year net revenue of $335 million to $355 million,
including:

-- U.S. net revenue for Angiomax of $320 million to $330
million

-- SG&A expense of $153 million to $159 million (GAAP)

-- $135 million to $140 million excluding stock-based
compensation expense

-- Total stock-based compensation expense of $22 million to $24
million

The Company reaffirmed 2008 guidance on other line items as
follows:

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Original Revised
---------------- --------------
(in millions, except percentages and
per share amounts)
Net Sales
U.S. Angiomax $ 310-$320 $320-$330
International Angiox $ 10-$15
US Cleviprex $ 5-$10
Total $ 325-$345 $335-$355

Cost of revenue 25%

R&D (GAAP) $ 79-$83
-------------------------------------- ---------------- --------------
(w/o 123R) $ 75-$79
-------------------------------------- ---------------- --------------

SG&A (GAAP) $ 146-$153 $153-$159
-------------------------------------- ---------------- --------------
(w/o 123R) $ 130-$135 $135-$140
-------------------------------------- ---------------- --------------

Stock Based Comp -123R (1) $ 20-$22 $ 22-$24

Investment Income $ 6-$8

Effective Tax Rate 50%-55%

Net Income - GAAP $ 12-$16
-------------------------------------- ---------------- --------------
- Non GAAP $ 41-$49
-------------------------------------- ---------------- --------------

EPS - GAAP $0.22-$0.30
-------------------------------------- ---------------- --------------
EPS - Non GAAP $0.77-$0.92
-------------------------------------- ---------------- --------------
*T

(1) Note that GAAP reporting of R&D and SG&A include stock based
compensation expense

There will be a conference call with management today at 8:30 a.m.
Eastern Time to discuss second quarter and first half 2008 financial
results, guidance and operational developments. The conference call
will be available via phone and webcast. The webcast can be accessed
at The Medicines Company website at www.themedicinescompany.com.

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The dial in information is listed below:
Domestic Dial In: 877-419-6590
International Dial In: 719-325-4894
*T

Replay is available from 11:30 a.m. Eastern Time following the
conference call through August 6, 2008. To hear a replay of the call,
dial 888-203-1112 (domestic) and 719-457-0820 (international).
Passcode for both dial in numbers is 4642411.

MDCO-F

About The Medicines Company: The Medicines Company (NASDAQ: MDCO)
is focused on advancing the treatment of critical care patients
through the delivery of innovative, cost-effective medicines to the
worldwide hospital marketplace. The Company markets Angiomax(R)
(bivalirudin) in the United States and other countries for use in
patients undergoing coronary angioplasty, a procedure to clear
restricted blood flow in arteries around the heart. The Company also
has two products in late-stage development, Cleviprex(TM) (clevidipine
butyrate) injectable emulsion and cangrelor. The Company's website is
www.themedicinescompany.com.

This document is intended to assist listeners of The Medicines
Company's quarterly results conference call available via webcast at
www.themedicinescompany.com. In this document and the call, statements
about The Medicines Company that are not purely historical, and all
other statements 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" and
"expects" and similar expressions, including our 2008 guidance, 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 the extent of the
commercial success of Angiomax, whether the Company's products will
advance in the clinical trials process on a timely basis or at all,
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 physicians, patients and other key decision makers will
accept clinical trial results, risks associated with the establishment
of international operations, 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
on May 12, 2008, which are incorporated herein by reference. The
Company specifically disclaims any obligation to update these
forward-looking statements.

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The Medicines Company
Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data) Three months ended June 30,
----------------------------
2008 2007
----------------------------

Net revenue $ 86,731 $ 56,399
Operating expenses:
Cost of revenue 21,939 15,094
Research and development 19,781 15,729
Selling, general and administrative 38,789 26,819
--------------- ------------
Total operating expenses 80,509 57,642
--------------- ------------
Income (loss) from operations 6,222 (1,243)
Other income 1,805 2,719
--------------- ------------
Income before income taxes 8,027 1,476
Provision for income taxes (3,971) (659)
--------------- ------------

Net income $ 4,056 $ 817
=============== ============

Basic earnings per common share $ 0.08 $ 0.02
=============== ============
Shares used in computing basic earnings
per common share 51,834 51,638
=============== ============

Diluted earnings per common share $ 0.08 $ 0.02
=============== ============
Shares used in computing diluted earnings
per common share 52,441 52,294
=============== ============
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The Medicines Company
Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data) Six Months Ended June 30,
-------------------------------
2008 2007
-------------------------------
Net revenue $ 166,159 $ 123,046
Operating expenses:
Cost of revenue 41,032 32,874
Research and development 38,443 35,208
Selling, general and administrative 74,139 53,957
---------------- --------------
Total operating expenses 153,614 122,039
---------------- --------------
Income from operations 12,545 1,007

Other income 4,186 5,302
---------------- --------------
Income before income taxes 16,731 6,309
Provision for income taxes (7,821) (2,444)
---------------- --------------
Net income $ 8,910 $ 3,865

Basic earnings per common share $ 0.17 $ 0.07
================ ==============
Shares used in computing basic
earnings per common share 51,792 51,578
================ ==============

Diluted earnings per common share $ 0.17 $ 0.07
================ ==============
Shares used in computing diluted
earnings per common share 52,361 52,587
================ ==============
*T

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The Medicines Company
Condensed Consolidated Balance Sheets
(unaudited)

June 30, December 31,
(in thousands) 2008 2007
------------ ------------

ASSETS
Cash, cash equivalents and available for
sales securities $ 238,068 $222,113
Accrued interest receivable 1,071 1,598
Accounts receivable, net 25,081 25,584
Inventory 29,567 35,468
Prepaid expenses and other current assets 10,949 7,425
------------ ------------
Total current assets 304,736 292,188
------------ ------------

Fixed assets, net 4,054 3,245
Intangible assets, net 14,641 14,929
Restricted cash 5,000 5,000
Deferred tax assets 39,433 46,018
Other assets 181 136
------------ ------------
Total assets $ 368,045 $361,516
============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 68,454 $ 83,620
Stockholders' equity 299,591 277,896
------------ ------------
Total liabilities and stockholders'
equity $ 368,045 $361,516
============ ============
*T

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The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended June 30,
-----------------------------------------------
2008
-----------------------------------------------
GAAP (1) Non-Cash Non-GAAP
As Tax (4) As
Reported SFAS123R Provision Adjusted
---------- --------- ----------- ----------
Net revenue $ 86,731 $ - $ - $ 86,731

Operating expenses:
Cost of revenue 21,939 (219)(2) - 21,720
Research and
development 19,781 (1,192)(2) - 18,589
Selling, general and
administrative 38,789 (5,451)(2) - 33,338
---------- --------- ----------- ----------
Total operating
expenses 80,509 (6,862) - 73,647

Income from operations 6,222 6,862 - 13,084

Other income 1,805 - - 1,805
---------- --------- ----------- ----------
Income before income
taxes 8,027 6,862 - 14,889
Provision for income
taxes (3,971) - 3,586(3) (385)
---------- --------- ----------- ----------
Net income 4,056 6,862 3,586 14,504

Basic earnings per
common share $ 0.08 $ 0.13 $ 0.07 $ 0.28
========== ========= =========== ==========

Shares used in
computing basic
earnings per common
share 51,834 51,834 51,834 51,834
========== ========= =========== ==========

Diluted earnings per
common share $ 0.08 $ 0.13 $ 0.07 $ 0.28
========== ========= =========== ==========

Shares used in
computing diluted
earnings per common
share 52,441 52,441 52,441 52,441
========== ========= =========== ==========

(1) GAAP Results
(2) Non-cash stock compensation expense
(3) Non-cash tax provision
(4) Non-GAAP Results
*T

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The Medicines Company
Reconciliation of GAAP to non-GAAP Measures
(Amounts in thousands, except per share data)
(Unaudited)
Six Months Ended June 30,
-----------------------------------------------
2008
-----------------------------------------------
GAAP (1) Non-Cash Non-GAAP
As Tax (4) As
Reported SFAS123R Provision Adjusted
---------- --------- ----------- ----------
Net revenue $ 166,159 $ - $ - $ 166,159

Operating expenses:
Cost of revenue 41,032 (356)(2) - 40,676
Research and
development 38,443 (1,872)(2) - 36,571
Selling, general and
administrative 74,139 (9,196)(2) - 64,943
---------- --------- ----------- ----------
Total operating
expenses 153,614 (11,424) - 142,190

Income from operations 12,545 11,424 - 23,969

Other income 4,186 - - 4,186
---------- --------- ----------- ----------
Income before income
taxes 16,731 11,424 - 28,155
Provision for income
taxes (7,821) - 6,602(3) (1,219)
---------- --------- ----------- ----------
Net income 8,910 11,424 6,602 26,936

Basic earnings per
common share $ 0.17 $ 0.22 $ 0.13 $ 0.52
========== ========= =========== ==========

Shares used in
computing basic
earnings per common
share 51,792 51,792 51,792 51,792
========== ========= =========== ==========

Diluted earnings per
common share $ 0.17 $ 0.22 $ 0.13 $ 0.51
========== ========= =========== ==========

Shares used in
computing diluted
earnings per common
share 52,361 52,361 52,361 52,361
========== ========= =========== ==========

(1) GAAP Results
(2) Non-cash stock compensation expense
(3) Non-cash tax provision
(4) Non-GAAP Results
*T

The Medicines Company
Robyn Brown, 973-656-1616
Vice President, Investor Relations
investor.relations@themedco.com

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