AMAG Pharmaceuticals reports fourth-quarter 2009 net product revenues of $12.8M attributable to Feraheme

Mar 1 2010

AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG), a biopharmaceutical company focused on the development and commercialization of a therapeutic iron compound to treat iron deficiency anemia and novel imaging agents to aid in the diagnosis of cancer and cardiovascular disease, today reported unaudited consolidated financial results for the fourth quarter and year ended December 31, 2009.

“We are very pleased with the progress made by AMAG in 2009”

Business Highlights

• AMAG reported fourth quarter 2009 Feraheme^® net product revenues of $12.8 million, including $1.3 million of the $11.5 million in previously deferred product revenues.
• To date, more than 1,300 providers have purchased Feraheme® (ferumoxytol) Injection; collectively, these providers purchased approximately 240,000 grams of all forms of IV iron over the past 52 weeks.
• Of the providers that have purchased Feraheme to date, more than 1,100 are treating non-dialysis dependent chronic kidney disease patients and more than 60 percent have purchased on a repeat basis.
• AMAG estimates that more than half of Feraheme provider demand in 2009 was outside of the dialysis setting.

“We are very pleased with the progress made by AMAG in 2009,” said Brian J.G. Pereira, MD, President and Chief Executive Officer of AMAG Pharmaceuticals, Inc. “In addition to receiving marketing approval for our first therapeutic product in the U.S., we launched Feraheme within two weeks of approval, and ended the year with a strong foundation from which to grow.”

Dr. Pereira continued, “We enter 2010 with ambitious plans to continue the successful launch of Feraheme for the treatment of iron deficiency anemia in adult chronic kidney disease patients in the U.S.; expand the development of Feraheme to IDA patients, with and without CKD around the world; advance our ferumoxytol imaging program; and secure a commercial partner for Feraheme in the E.U.”

As of December 31, 2009, the Company’s cash, cash equivalents, investments and settlement rights associated with certain auction rate securities totaled $129.5 million. In January 2010, AMAG successfully completed a follow-on offering of 3.6 million shares of common stock, with net proceeds to the Company of approximately $165.6 million. Revenues for the quarter ended December 31, 2009 were $13.1 million as compared to revenues of $0.6 million for the same period in 2008. Revenues for the year ended December 31, 2009 were $17.2 million as compared to $1.9 million for the same period in 2008. The increases in revenues in 2009 over the comparable 2008 periods were attributable to Feraheme product sales following its approval and subsequent launch in July 2009.

Total operating costs and expenses for the quarter ended December 31, 2009 were $33.3 million as compared to $23.8 million for the same period in 2008. Total operating costs and expenses for the year ended December 31, 2009 were $115.1 million as compared to $81.5 million for the same period in 2008. The increases in operating costs and expenses in 2009 over the comparable 2008 periods were primarily due to increased selling, general and administrative expenses associated with the commercialization of Feraheme.

The Company reported a net loss of $18.4 million, or a loss of $1.07 per basic and diluted share, for the quarter ended December 31, 2009, as compared to a net loss of $21.8 million, or a loss of $1.28 per basic and diluted share, for the same period in 2008. Net loss for the year ended December 31, 2009 was $93.4 million, or a loss of $5.46 per basic and diluted share, as compared to a net loss of $71.6 million, or a loss of $4.22 per basic and diluted share for the same period in 2008.