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AMAG Pharmaceuticals' (AMAG) Q2 Loss Narrower Than Expected

Zacks Equity Research
·4-min read

AMAG Pharmaceuticals, Inc. AMAG incurred an adjusted (excluding one-time expenses) loss of 25 cents per share in the second quarter of 2020, narrower than the year-ago quarter’s reported loss of $1.28. The loss was also narrower than the Zacks Consensus Estimate of a loss of 30 cents.

Including the one-time expenses, AMAG posted a loss of 39 cents per share in the second quarter,  compared with the year-ago quarter’s loss of $3.58.

Quarterly revenues of $52.8 million fell 32.1% from $77.8 million a year ago. The top line also missed the Zacks Consensus Estimate of $56 million.This decrease was due to the negative impact of COVID-19.

Shares of the company fell 4% following the earnings release. However, shares of AMAG have plunged 17.5% in the year so far against the industry’s increase of 5.4%.

Quarter in Detail

Makena’s second-quarter revenues totaled $22.3 million, a decrease of 27% year over year.  

Feraheme sales were $29.6 million in the second quarter, a declineof30% year over year.

Intrarosa generated sales worth $1.2 million in the reported quarter compared with $4.9 million in the prior year.

During the quarter, AMAG completed the divestment of Intrarosa and Vyleesi, which reduced operating expenses. Intrarosa was divested to Millicent Pharma in may 2020. Meanwhile, in July 2020, the company divested Vyleesi to Palatin. The decision will help the company focus on continuing the development of its pipeline candidates ciraparantag and AMAG-423, see steady growth of Feraheme and carry on with its work to retain patient access to Makena.

Research and development (R&D) expenses totaled $8.2 million compared with $13.9 million in the year-ago quarter. This decrease was mainly related to lower costs for Vyleesi following FDA approval in 2019 and COVID-19 related delays in clinical studies.

Selling, general and administrative (SG&A) expenses decreased about 49.4% to $37.1  million in the second quarter of 2020. This decrease was attributable to decreases in marketing spend related to women’s health assets and reduced compensation-related costs as a result of the May 2020 restructuring.

Other Updates

AMAG entered into an exclusive licensing agreement with Norgine, a leading European specialist pharmaceutical company, to develop and commercialize ciraparantag in Europe, Australia and New Zealand. Ciraparantag is in development as a single dose, ready-to-use solution for use in patients treated with novel oral anticoagulants (NOACs) or low molecular weight heparin (LMWH) when reversal of the anticoagulant effect of these products is needed for emergency surgery, urgent procedures or due to life-threatening or uncontrolled bleeding. For the deal, AMAG received an upfront payment of$30 million and could receive up to $260 million in future contingent development and commercial milestones, together with escalating double-digit royalties. Further, Norgine has committed to contribute one-third of the costs of the phase III clinical program, which would be conducted by AMAG to support regulatory approval of ciraparantag

2020 Guidance

The company reissed the financial guidance for 2020 and expects total revenues of $225-$255 million.

Zacks Rank & Stocks to Consider

AMAG currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector include Emergent Biosolutions Inc. EBS, AC IMMUNE SA. ACIU and Alimera Sceinces Inc. ALIM. While Emergent sportsa Zacks Rank #1 (Strong Buy), AC IMMUNE and Alimera carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Emergent’s earnings estimates have increased from $2.85 to $5.60 for 2020 and from $3.35 to $6.67 for 2021 over the past 60 days.

AC IMMUNE’s loss per share estimates have narrowed from 92 cents to 90 cents for 2020 over the past 60 days.

Alimera’s loss per share estimates have narrowed from $2.33 to $1.31 for 2020 and from 63 cents to 52 cents for 2021 over the past 60 days.

 

AMAG Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

 

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

AMAG Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | AMAG Pharmaceuticals, Inc. Quote

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