UPDATE: JP Morgan Downgrades AMAG Pharmaceuticals to Underweight, Reduces PT to $12

JP Morgan Lowers its rating on AMAG Pharmaceuticals (NASDAQ: AMAG) to Underweight from Equal-weight and lowers its price target to $12 as the company comes off a failed merger. JP Morgan notes, "AMAG is coming off a failed merger with Allos and is currently evaluating strategic alternatives for its business. AMAG's lead product, Feraheme has had a disappointing launch (2011 sales largely flat since 2010; 2012 expectations seem high at +14% growth) and we think that business disruptions are likely going forward given the uncertainty with the fate of the company. While AMAG's ~$10 / share in cash does provide downside protection, we see little upside with Feraheme in 2012. New indications such as IDA could expand the Feraheme label based on data in 1H12, but these will require higher SG&A investments, which run the risk of profitability being pushed."AMAG closed at $16.10 on Friday. A