AMAG Pharmaceuticals Sees Q4 Revenues of $14.3-15.0M vs $16.11M

AMAG Pharmaceuticals, Inc. AMAG today announced a business update, including preliminary fourth quarter 2011 financial results and its outlook for 2012. The company will present further details at the 30th Annual J.P. Morgan Healthcare Conference in San Francisco on January 11, 2012 at 3:00 p.m. Pacific time. Over the course of 2011, the company successfully completed the transition of Feraheme® provider demand from both dialysis and non-dialysis sites of care to entirely non-dialysis sites of care. Feraheme non-dialysis provider demand for the fourth quarter of 2011 was approximately 24,250 grams1, consistent with the third quarter of 2011, but 20% percent higher than the fourth quarter of 2010. Of particular note is Feraheme's growth in the hematology/oncology market segment, which increased approximately 65% in 2011 over 2010. AMAG expects to report fourth quarter 2011 total revenues of between $14.3 and $15.0 million, including between $12.4 and $13.1 million in net Feraheme product revenues. Total operating costs and expenses are expected to be between $38 and $43 million, including certain restructuring costs and a $2 million termination fee paid to Allos Therapeutics. AMAG implemented a restructuring plan on November 4, 2011 to align its operating expenses with projected Feraheme revenues. The restructuring plan included a reduction in force of approximately 25 percent and was designed to position the company to achieve cash flow breakeven in 2012 without impacting growth of Feraheme sales. The company's field sales team was realigned to a more strategically targeted account list and the number of territories was reduced from 72 to approximately 55 during the fourth quarter. The restructuring also included changes to the executive leadership team at AMAG, including the company's chief executive officer and chief commercial officer. AMAG hired Jefferies & Company, Inc. as a strategic advisor. Jefferies is assisting the company in identifying and evaluating various strategies to enhance stockholder value and leverage AMAG's core assets – Feraheme, AMAG's commercial and drug development infrastructure, and the company's balance sheet, which had more than $225 million in cash and investments, and no debt, as of December 31, 2011.