The Medicines Company Reports Fourth Quarter and Full Year 2005 Financial Results

Financial highlights include:

-- Net revenues were $32.1 million for the fourth quarter 2005, compared to $40.9 million for the fourth quarter of 2004. For the full year 2005, net revenues were $150.2 million, compared to $144.3 million for the full year 2004.

-- Net loss was $5.1 million for the fourth quarter 2005, compared to net income of $4.7 million for the fourth quarter 2004. For the full year 2005, net loss was $7.8 million, compared to net income of $17.0 million for the full year 2004.

-- The Company estimates that wholesaler inventories were reduced by $26 million in the third and fourth quarters combined.

Steve Koehler, Senior Vice President and Chief Financial Officerof The Medicines Company stated, "In October, we provided revisedguidance for Angiomax sales of $150 million. We also guided to areduction in wholesaler inventories of $26 million in the third andfourth quarters. Fourth quarter growth in underlying demand forAngiomax(R) (bivalirudin) enabled us to reach our revenue guidance,while also reducing wholesaler inventories as we planned."

John Kelley, President and Chief Operating Officer, said, "Our keymilestone in the fourth quarter was the completion of patientenrollment in the 13,800-patient Angiomax ACUITY trial in patientswith acute coronary syndromes. The trial has been accepted forlate-breaking presentation at the American College of CardiologyConference on March 12."

Mr. Kelley continued, "The future drivers of our acute carefranchise continue to advance. We are continuing to enroll the PhaseIII safety trials for clevidipine, our IV blood pressure controlagent, and we expect completion of this program in 2006. We expect tocommence patient enrollment in the Phase III CHAMPION-PCI trial of ournovel IV antiplatelet candidate, cangrelor, in the first half of 2006.With Angiomax and with our two late-stage programs moving forward, webegin 2006 well positioned for sustainable growth."

There will be a conference call with management today at 8:30 A.M.to discuss financial results, outlook and operational developments. Tolisten live, webcast login is available athttp://www.themedicinescompany.com. Alternatively, the call dial-in is866-510-0704 (passcode is 28012450). From outside U.S.: dial1-617-597-5362 (passcode is 28012450). Replay is available from 10:30am EST following the conference call through February 28, 2006. Tohear a replay of the call, dial 888-286-8010 (domestic) and617-801-6888 (international). Passcode for both dial in numbers is59585880.

The Medicines Company meets the demands of the world's mostadvanced medical practitioners by developing products that improveacute hospital care. The Company markets Angiomax(R)(bivalirudin), ananti-clotting therapy approved in the U.S. and other countries for usein patients undergoing coronary angioplasty, a procedure to clearrestricted blood flow in arteries around the heart. The MedicinesCompany creates value using its range of clinical and commercialskills to develop products acquired from leading life scienceinnovators. The Company's website ishttp://www.themedicinescompany.com.

Statements contained in this press release about The MedicinesCompany, the Company's projected revenues and financial results,expected benefits of the Company's restructured wholesalerarrangements, the timing of clinical trials and clinical trialresults, and all other statements that are not purely historical, maybe deemed to be forward-looking statements for purposes of the safeharbor provisions under The Private Securities Litigation Reform Actof 1995. Without limiting the foregoing, the words "believes","anticipates", "plans", "expects", "intends", "potential", "estimates"and similar expressions are intended to identify forward-lookingstatements. These forward-looking statements involve known and unknownrisks and uncertainties that may cause the Company's actual results,levels of activity, performance or achievements to be materiallydifferent from those expressed or implied by these forward-lookingstatements. Important factors that may cause or contribute to suchdifferences include the extent of the commercial success of Angiomax,the Company's dependence on wholesalers and international distributionpartners for sales of Angiomax and the fluctuation of revenues basedon the buying patterns of these wholesalers and internationaldistribution partners, the success of the Company's arrangements withthe Company's wholesalers referred to in this release, that thesewholesaler arrangements are subject to termination on short notice,physicians' acceptance of Angiomax clinical trial results, whether theCompany will be able to obtain regulatory approval for additionalindications of Angiomax, whether the Company's products will receiveapprovals from regulatory agencies, whether the Company's productswill advance in the clinical trials process on the timelinesanticipated by the Company or at all, whether the clinical trialresults will warrant submission of applications for regulatoryapproval, and such other factors as are set forth in the risk factorsdetailed from time to time in the Company's periodic reports filedwith the Securities and Exchange Commission including, withoutlimitation, the risk factors detailed in the Company's QuarterlyReport on Form 10-Q filed on November 8, 2005, which are incorporatedherein by reference. The Company specifically disclaims any obligationto update these forward-looking statements.
The Medicines Company
Consolidated Statements of Operations

Three months ended
(in thousands, except per share data) December 31,
--------------------------
2005 2004
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Net revenue $ 32,120 $ 40,865
Operating expenses:
Cost of revenue 7,061 8,795
Research and development 12,960 15,106
Selling, general and administrative 18,527 12,676
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Total operating expenses 38,548 36,577
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Income/(loss) from operations (6,428) 4,288
Other income 1,314 651
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Income/(loss) before income taxes (5,114) 4,939
Provision for income taxes 4 (272)
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Net income/(loss) $ (5,110) $ 4,667
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Basic earnings/(loss) per common share $ (0.10) $ 0.10
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Shares used in computing basic
earnings/(loss) per common share 49,720 48,273
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Diluted earnings/(loss) per common share $ (0.10) $ 0.09
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Shares used in computing diluted
earnings/(loss) per common share 49,720 49,910
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The Medicines Company
Consolidated Statements of Operations

Twelve months ended
(in thousands, except per share data) December 31,
--------------------------

--------------------------
2005 2004
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Net revenue $ 150,207 $ 144,251
Operating expenses:
Cost of revenue 34,762 29,123
Research and development 64,389 49,290
Selling, general and administrative 63,053 50,275
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Total operating expenses 162,204 128,688
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Income/(loss) from operations (11,997) 15,563
Other income 4,344 2,126
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Income/(loss) before income taxes (7,653) 17,689
Provision for income taxes (100) (690)
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Net income/(loss) $ (7,753) $ 16,999
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Basic earnings/(loss) per common share $ (0.16) $ 0.36
============ =============
Shares used in computing basic
earnings/(loss) per common share 49,443 47,855
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Diluted earnings/(loss) per common share $ (0.16) $ 0.34
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Shares used in computing diluted
earnings/(loss) per common share 49,443 49,772
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The Medicines Company
Condensed Consolidated Balance Sheets


December 31, December 31,
(in thousands) 2005 2004
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ASSETS
Cash, cash equivalents, available for sales
securities $ 140,089 $ 160,312
Accrued interest receivable 922 912
Accounts receivable, net 14,611 18,388
Inventories 47,985 27,342
Prepaid expenses and other current assets 971 1,252
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Total current assets 204,578 208,206
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Fixed assets, net 3,990 1,677
Other assets 139 161
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Total assets $ 208,707 $ 210,044
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LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities $ 34,666 $ 34,856
Deferred revenue 3,142 3,517
Stockholders' equity 170,899 171,671
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Total liabilities and stockholders'
equity $ 208,707 $ 210,044
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