Back to top

Analyst Blog

AMAG Pharmaceuticals Inc. (AMAG - Snapshot Report) recently announced certain changes to its operating cost structure. The company intends to focus on Feraheme and boost its product portfolio with commercial stage assets.

AMAG’s global phase III iron deficiency anemia (IDA) clinical program for Feraheme is scheduled to complete this year. This should allow the company to file a supplemental New Drug Application (sNDA) for Feraheme.

AMAG is managing its internal development expenses so as to meet its future development requirements.

We note that Feraheme is approved in the US since June 2009. It is also approved in Canada and is marketed by Takeda Pharmaceuticals (TKPYY). Recently, Feraheme received marketing authorization in the EU where it will be launched in 2012 under the trade name of Rienso.

AMAG intends to outsource its manufacturing requirements and is divesting its own Cambridge, MA manufacturing facility. With the company deciding to divest its manufacturing facility, AMAG will now stop producing GastroMark. AMAG will be incurring one-time costs related to the GastroMark agreements of around $1.6 million in the second quarter.

The company also intends to cut its workforce by 45 positions by the end of this year and expects to incur restructuring costs of about $1 million. Of the $1 million, AMAG expects to recognize $0.5 million in the second quarter 2012.

AMAG stated that these restructuring efforts will help reduce operating expenses from early 2013. AMAG added that external research and development expenses related to the company’s IDA clinical development program will not be recurring, resulting in further reduction in the company’s 2013 operating expenses. The change in the manufacturing structure will also result in lower cost of goods sold in 2014. 

We currently have a Neutral recommendation on the stock, which carries a Zacks #3 Rank (short-term Hold rating).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%