Unaudited consolidated financial results for the third-quarter reported by AMAG Pharmaceuticals

Oct 29 2009

AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG), a biopharmaceutical company focused on the development and commercialization of a therapeutic iron compound to treat anemia and novel imaging agents to aid in the diagnosis of cancer and cardiovascular disease, today reported unaudited consolidated financial results for the third quarter and nine months ended September 30, 2009.

Business Highlights

• The Company commenced the U.S. commercial launch of Feraheme™ (ferumoxytol) Injection on July 13, 2009, within two weeks of receipt of FDA approval. The Company reported $3.0 million of total revenues for the third quarter of 2009, of which $2.9 million was related to the sale of Feraheme. An additional $11.5 million was recorded as deferred revenue as of September 30, 2009. This deferred revenue was primarily associated with a launch incentive program implemented to advance the adoption of Feraheme by dialysis organizations.
• More than 500 customers have purchased Feraheme; collectively, these customers used 140,000 grams of all forms of IV iron over the past 52 weeks.
• Approximately 65 percent of Feraheme provider demand in the third quarter was outside of the dialysis setting. The Company views non-dialysis chronic kidney disease as a significant market opportunity for a safe and effective IV iron with the dosing profile of Feraheme.

“During the third quarter, years of hard work by AMAG employees culminated in the launch of Feraheme, which completed the transformation of AMAG into a commercial biopharmaceutical company,” commented Brian J.G. Pereira, M.D., President and Chief Executive Officer of AMAG Pharmaceuticals, Inc. “We are now focused on making Feraheme a commercial success in the chronic kidney disease market in the United States and unlocking the value of this asset for iron deficiency anemia patients, with or without chronic kidney disease, around the world.”

As of September 30, 2009, the Company’s cash, cash equivalents, investments and settlement rights associated with certain auction rate securities totaled $151.8 million. Total revenues for the quarter ended September 30, 2009 were $3.0 million as compared to total revenues of $0.3 million for the same period in 2008. Total revenues for the nine month period ended September 30, 2009 were $4.0 million as compared to $1.4 million for the same period in 2008.

Total operating costs and expenses for the quarter ended September 30, 2009 were $25.6 million as compared to $24.8 million for the same period in 2008. Total operating costs and expenses for the nine month period ended September 30, 2009 were $81.9 million as compared to $57.8 million for the same period in 2008. The increase in operating costs and expenses over the comparable nine month periods was primarily due to increased selling, general and administrative expenses associated with the commercialization of Feraheme.

The Company reported a net loss of $22.1 million, or a loss of $1.29 per basic and diluted share, for the quarter ended September 30, 2009, as compared to a net loss of $23.6 million, or a loss of $1.39 per basic and diluted share, for the same period in 2008. Net loss for the nine months ended September 30, 2009 was $74.9 million, or a loss of $4.39 per basic and diluted share, as compared to a net loss of $49.9 million, or a loss of $2.94 per basic and diluted share for the same period in 2008.