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
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.