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AMAG Pharma (AMAG) Q1 Loss Wider Than Expected, Lifts View

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AMAG Pharmaceuticals, Inc. AMAG reported adjusted loss of $1.59 per share in the first quarter of 2018 compared with the year-ago quarter loss of $1.06. The reported loss was also wider than the Zacks Consensus Estimate of a loss of 49 cents.

Quarterly revenues came in at $146.4 million, up approximately 5% from $139.5 million in the year-ago quarter, driven by sales growth across the product portfolio. However, the top line missed the Zacks Consensus Estimate of $155 million.

Shares of AMAG have returned 44.9% year to date, compared with the industry’s decline of 13%.

Quarter in Detail

Makena sales came in at $90 million, up 4% year over year.

Combined sales of Feraheme and MuGard amounted to $25.2 million, down 3% year over year. The temporary shortage of saline caused by the 2017 hurricane impact in Puerto Rico, a key manufacturing saline site, dented Feraheme sales in the early weeks of the quarter.

During the quarter, service revenues from Cord Blood Registry came in at $29 million, 8% higher than $26.9 million recorded in the year-ago quarter.

Costs and expenses, including costs of product sales and services, totaled $191.2 million in the reported quarter, an increase of 6.5% from the year-ago quarter. This increase was primarily due to higher costs of products sold which included an increase in amortization expenses primarily related to the Makena intramuscular intangible asset, and higher selling, general and administrative (SG&A) expenses related to launch activities for the Feraheme expanded label, the Makena SC auto-injector and Intrarosa.

Two New FDA Approvals in February

The FDA approved label expansion of Feraheme (ferumoxytol injection) beyond the current chronic kidney disease (“CKD”) indication. The new approval includes all eligible adult Iron Deficiency Anemia (“IDA”) patients who have intolerance to or have had unsatisfactory response to oral iron. The company also launched Feraheme with broad IV IDA label.

In February 2018, the FDA also approved a new administration option for Makena - subcutaneous auto-injector drug-device combination product to reduce the risk of preterm birth in certain at-risk women.  In March the company launched the same and

During the quarter, the company submitted a new drug application to the FDA for bremelanotide for the treatment of hypoactive sexual desire disorder in premenopausal women.

2018 Outlook

AMAG increased 2018 guidance and expects revenues in the range of $540-$580 million, raised from its previous guidance of $500-$800 million. TwoFDA approvals that provide an opportunity to broaden and extend the Makena and Feraheme brands and the filing of an NDA for bremelanotide and the company’s expectation for continued strong commercial execution led it to increase its guidance.

Zacks Rank & Stocks to Consider

AMAG is a Zacks Rank #3 (Hold) stock.

A few better-ranked stocks from the same space worth considering are Ligand Pharmaceuticals LGND, Protagonist Therapeutics PTGX and Catabasis Pharmaceuticals CATB. Whlle Ligand and Protagonist sport a Zacks Rank #1 (Strong Buy), Catabasis carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

Ligand’s earnings per share estimates have moved up $4.20 to $4.43 for 2018 over the last 30 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 24.88%. The company’s shares have rallied 10.1% year to date.

Protagonist’s loss estimates narrowed from $1.68 to 66 cents for 2018 and from $2.43 to $1.26 for 2019, over the last 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 24.95%.

Catabasis’ loss estimates narrowed from $1.09 to 90 cents for 2018 and from $1.76 to $1.43 for 2019, in the last 60 days. The company came up with a positive earnings surprise in all the preceding four quarters, with an average beat of 14.56%. The stock has rallied 7.4% so far this year.

AMAG Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

AMAG Pharmaceuticals, Inc. Price, Consensus and EPS Surprise | AMAG Pharmaceuticals, Inc. Quote

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