) announced its preliminary fourth quarter and full year 2013
financial results. AMAG's shares gained more than 9.3% following
AMAG's total revenues for the fourth quarter of 2013 are expected
within $21.3-$21.8 million, compared with $21.1 million in the
year-ago period. The company's projected range is above the Zacks
Consensus Estimate of $21 million. AMAG's fourth quarter revenues
include U.S. net Feraheme product revenues of $18.6-$19.1
million, compared with $14.4 million in the year-ago period.
AMAG records revenues mainly from Feraheme, an injectable drug
for intravenous use as iron replacement therapy for the treatment
of iron deficiency anemia (IDA) in adults suffering from chronic
kidney disease (CKD). AMAG is looking to get Feraheme's label
expanded for the treatment of IDA in all adults suffering from
CKD with a history of unsuccessful oral iron therapy. The FDA is
expected to render a final decision on Feraheme's label expansion
by Jan 21, 2014.
The company's total revenue for 2013 is expected to be in the
band of $80.5-$81 million, compared with the year-ago figure of
$85.4 million. The Zacks Consensus Estimate of $81 million is on
the high end of the company's guidance.
Meanwhile, the company's U.S. net Feraheme revenues look
impressive. AMAG expects U.S. net Feraheme product revenues in
the range of $71−$71.5 million, up from the 2012 figure of $58.3
million. Higher volume and improved pricing drove 2013 Feraheme
AMAG expects 2013 operating expenses within $79.5-$81 million,
down about 7% from 2012.
AMAG's fourth quarter and full year 2013 Feraheme sales figures
look impressive. However, we believe investor focus will stay on
the upcoming FDA decision on Feraheme's label expansion. We
expect a negative decision or further delay in the approval of
the broader label of Feraheme. This will have a negative impact
on AMAG's share price.
AMAG currently carries a Zacks Rank #4 (Sell). Some better-ranked
Jazz Pharmaceuticals Public Limited Company
). All the stocks hold a Zacks Rank #1 (Strong Buy).
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