Medicines Co. Takes Sick Day

The company's shares look a little peaked after a profit shortfall.
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Medicines Co.

(MDCO) - Get Report

said its earnings sank in the second quarter, and as a result the company's shares did the same Wednesday.

Second-quarter earnings fell to $1.3 million, or 2 cents a share, from $2.8 million, or 6 cents a share a year ago. Analysts surveyed by Thomson First Call expected earnings of $3.1 million, or 7 cents a share.

The Parsippany, N.J., pharmaceutical company blamed the earnings shortfall on increased research and development spending and higher operating costs.

Shares of Medicines were down $2.90, or 12%, to $21.43, and volume was very heavy.

R&D spending in the quarter was $16 million, four times the level in the year-ago period. The company also expanded its sales force for the blood thinner Angiomax by 50% and accelerated enrollment in a trial of the product in acute coronary syndromes. Medicines has also increased its investment in Cangrelor, which the company acquired from

AstraZeneca

(AZN) - Get Report

in late 2003.

Medicines said revenue increased in the second quarter on higher Angiomax sales. Revenue was $42.6 million, up 24% from $34.4 million for the second quarter of 2004.