I am here to talk today about The Medicines Company, which is focused on both value and growth in hospital, acute and intensive care medicines. And before I begin, I should point out of course that I will be using certain forward-looking statements; and for a complete account of the risks and uncertainties associated with our stock, I will refer you to our most recent SEC filings.This is a bottle of Angiomax, direct injectable thrombin inhibitor used in PCI, that have been used to treat more than 4 million people worldwide during the cardiac procedures by consequence of that. Branson and colleagues and others have published estimates that it would save 35,000 lives, so far, 50,000 major transfusions or bleeds and about 5,000 patient years of hospitalization, which is a large amount of resource consumption reduction, which is associated with total hospital savings to-date of about $2.5 billion. During that time, since the launch of the product, we’ve been fortunate to garner about $2.6 billion in net revenue, including last year, $484 million; and this year we’re running well over $500 million run rate. So just to me that splitting the value creation 50-50 with your customers would be a pretty sustainable approach. Our entire pipeline takes a similar approach; we have 10 products including Angiomax, including three in Phase III, two in Phase II and two in Phase I to testing. So quite an extensive portfolio, all in the acute hospital space, and we’re operating now in 19 countries on a worldwide basis and we have partnerships in a couple of others. Despite this and despite the rather substantial growth both behind and ahead of us, market capital term is about $1.2 billion including almost $300 million of cash. So the investment thesis put up in 10 minute here is that there’s an opportunity for an investment based on four key points. Firstly, that the cash flows future for Angiomax, we expect largely support the current valuation. The commercial business because of our footprint in the hospital and our capabilities as demonstrated recently by our deal with AstraZeneca has global leverage. Thirdly, that a focused R&D portfolio as I show you can add significant value that should be accounted for. And finally, we’ve been executing in a reasonably predicable fashion particularly in the last nine quarters.
So, Angiomax is for sure now the leading solution for anticoagulation in percutaneous coronary interventions. And the reasons are quite simple, it’s data set which show a 40% reduction in cardiac death, it’s sustained out for three years in particularly high-risk patients who’re having a ST-segment elevation myocardial infarction, 40% reduction in major bleeding in fact in high-risk patients as much as a 60% reduction. But once they do their length of stay reduction in particularly urgent PCI, but also for some elective procedures and cost savings in the hospital of between $400 and $2,000 each time they use the drug.No surprise, therefore that the drug has grown and more or less in a straight line fashion since launch, with a compound annual growth rate of around 40%. We do expect that growth to continue and the way we expect that growth to be driven is because we will be seeing the drug use more and more high-risked patients, because of the latest data from HORIZONS II published in the New England Journal of Medicine several times now. And also another trial in Germany called, ISAR-REACT-4, which showed once again the utility and effect of the drug as well as its superior safety in high-risk ACS patients treated in the cath labs. So, this should continue for those reasons alone. In addition to that, we are investing in new uses of the drug, as many of you know, coronary interventions are flat or declining in the United States and flat in European Union, although, growing rapidly Asia. However, what is exciting in terms of growth in the United States, this peripheral arterial disease interventions, which now represent more than 400,000 additional procedures a year, structural heart disease procedures such as transcutaneous aortic valve replacements and carotid and atherectomy through a catheter. Read the rest of this transcript for free on seekingalpha.com