AMAG Provides Business Outlook for 2014 and Reports 2013 Financial Results

AMAG Provides Business Outlook for 2014 and Reports 2013 Financial Results

  *Achieves record annual U.S. Feraheme product revenues in 2013 with 28%
    growth over 2012
  *Guides to continued growth for Feraheme and first breakeven year in 2014
  *Conference call scheduled for 8:00 a.m. Eastern time today

WALTHAM, Mass., Feb. 6, 2014 (GLOBE NEWSWIRE) -- AMAG Pharmaceuticals, Inc.
(Nasdaq:AMAG), a specialty pharmaceutical company, today reported unaudited
consolidated financial results for the fourth quarter and year ended December
31, 2013. The company achieved record annual U.S. Feraheme® net product sales
of $71.4 million. As of December 31, 2013, the company's cash and investments
totaled $216.7 million (including $2.9 million of restricted cash).

"In 2013, we executed a plan to drive renewed volume growth and increased net
revenue per gram for Feraheme, generating the outstanding results reported
today," said William Heiden, president and chief executive officer of AMAG.
"While the recent news on our supplemental new drug application for Feraheme
in the U.S. clearly represents, at a minimum, a delay in the potential
approval of the expanded label, we intend to continue to work towards an
approval and remain focused on the near-term opportunity of maximizing
Feraheme in our current indication for the treatment of iron deficiency anemia
(IDA) in chronic kidney disease (CKD) patients."

Heiden continued, "We achieved a number of important corporate objectives in
2013, including dramatic improvements in our top-line and bottom-line
performance (vs. 2012). These successes have given us an even stronger
foundation from which to continue to build across an ambitious new set of
goals for 2014."

2014 Goals

The company's goals for 2014 include the following:

  *Maximize Feraheme revenues, including increasing market share within the
    current U.S. IDA CKD indication, undertaking market expansion initiatives
    for the 1.6 million patients diagnosed with IDA and CKD but not treated
    with IV iron, and optimizing net revenue per gram;
  *Drive MuGard® Mucoadhesive Oral Wound Rinse growth across the 400,000
    patients in the U.S. at risk of developing oral mucositis;
  *Support Takeda's efforts to gain approval of the Type II Variation with
    the European Medicines Agency (EMA) for broad IDA label expansion of
    Rienso in the E.U., which would trigger a significant milestone payment;
  *Determine and pursue the optimal path forward for Feraheme for the broad
    IDA indication in the U.S. with input from the U.S. Food and Drug
    Administration (FDA); and
  *Expand the company's product portfolio through acquisition or in-licensing
    of specialty pharmaceutical product(s) or companies.

2014 Financial Outlook

The company is issuing the following financial guidance for 2014:

-- Total revenues of between $88 million and $100 million (not including the
potential milestone payment for broad IDA approval in the E.U.), including:

  *U.S. Feraheme net product sales of between $75 million and $85 million;
  *Revenue from MuGard, ex-U.S. Feraheme product sales, royalties and
    milestones of between $13 million and $15 million;

-- Cost of goods sold (COGS) of between 14% and 16% of Feraheme net product

-- Total operating expenses of between $80 million and $85 million, including:

  *Research and development expenses of between $20 million and $22 million;
  *Selling, general and administrative expenses of between $60 million and
    $63 million; and

-- Operating the business to break-even for the full year, before the
potential milestone related to broad IDA approval in the E.U.

The company's guidance for 2014 does not include: the impact of business
development transactions or potential expenses associated with further
development of Feraheme for the broad IDA indication.

Fourth Quarter and Full Year 2013 Financial Results (unaudited)

Total revenues for the fourth quarter ended December 31, 2013 were $21.7
million, as compared to $21.1 million for the same period in 2012. Total
revenues for the year ended December 31, 2013 were $80.9 million as compared
to $85.4 million for 2012. The decrease in total revenues in 2013 was driven
primarily by non-recurring 2012 milestone revenues, partially off-set by
increased U.S. Feraheme product sales.

U.S. Feraheme net product sales for the quarter ended December 31, 2013 were
$19.0 million, a 32% increase compared to $14.4 million for the same period in
2012. U.S. Feraheme net product sales for 2013 were $71.4 million (including a
$0.6 million reduction of Medicaid reserves), as compared to $58.3 million
(including a $3.2 million reduction of product return and Medicaid reserves)
for 2012.This represents a 28% increase excluding the reductions in Medicaid
and product return reserves and a 22% increase when including these reductions
in reserves. The strong growth in 2013 Feraheme sales was driven by
significant increases in volume as well as an increasing net revenue per gram.

Feraheme COGS for the fourth quarter of 2013 was $3.2 million, or 17%, of
Feraheme net product sales, compared to $4.0 million, or 28%, for the fourth
quarter of 2012. Feraheme COGS for 2013 was $11.6 million, or 16%, of Feraheme
net product sales, compared to $14.0 million, or 24%, for 2012. Feraheme COGS
for the 2012 periods included expenses associated with the closing of the
company's Cambridge, Massachusetts manufacturing facility.

Total operating expenses, excluding COGS, for the fourth quarter of 2013 were
$22.4 million, compared to $21.1 million same period in 2012. The increase in
operating expenses in the fourth quarter of 2013 relates to increased business
development expenses in support of the company's portfolio expansion and
contingent consideration expense related to the purchase accounting for the
license of MuGard in 2013. Total operating expenses for 2013 were $80.5
million, as compared to $88.6 million for 2012. The decrease in operating
costs in 2013 versus 2012 was primarily attributable to lower research and
development expenses due to the completion of the phase III IDA clinical
program in mid-2012, partially offset by increased expenses associated with
acquiring and marketing MuGard.

The company reported a net loss of $3.7 million, or $0.17 per share, for both
quarters ended December 31, 2013 and 2012. Net loss for 2013 was $9.6 million,
or $0.44 per share, as compared to a net loss of $16.8 million, or $0.78 per
share, for 2012.

AMAG utilized $10.3 million to fund its operations in 2013, including the $3.3
million upfront payment to license MuGard and ended the year with $216.7
million in cash and investments.

"We are proud of the achievements of 2013, represented in our financial
results reported today; significant volume and price growth for Feraheme, the
addition of a new commercial product to our portfolio, and continued financial
discipline resulting in a 43% reduction in net loss," said Frank Thomas, chief
operating officer of AMAG. "We have set another set of ambitious goals for
2014, including the financial guidance that we have given today, which we have
already begun to pursue aggressively in order to meet or beat."

About Iron Deficiency Anemia

More than 4 million Americans have IDA; 1.6 million of whom are estimated to
have CKD, while the other 2.4 million suffer from anemia due to other
causes.^1For these patients with anemia due to other causes, the underlying
diseases or issues causing IDA include abnormal uterine bleeding,
gastrointestinal disorders, inflammatory diseases and chemotherapy-induced
anemia.Many IDA patients fail treatment with oral iron due to intolerability
or side effects.^2

Conference Call and Webcast Access

AMAG Pharmaceuticals, Inc. will host a conference call and webcast with slides
today at 8:00 a.m. ET, during which management will discuss the company's
financial results and commercial progress. To access the conference call via
telephone, please dial (877) 412-6083 from the United States or (702) 495-1202
for international access.A telephone replay will be available from
approximately 11:00 a.m. ET on February 6, 2014 through midnight on February
13, 2014.To access a replay of the conference call, dial (855) 859-2056 from
the United States or (404) 537-3406 for international access.The pass code
for the live call and the replay is 58720931.

The call will be webcast with slides and accessible through the Investors
section of the company's website at webcast replay
will be available from approximately 11:00 a.m. ET on February 6, 2014 through
midnight March 7, 2014.

About AMAG

AMAG Pharmaceuticals, Inc. is a rapidly growing, specialty pharmaceutical
company, supported by a talented and passionate workforce. AMAG currently
markets Feraheme® (ferumoxytol) Injection and MuGard® Mucoadhesive Oral Wound
Rinse in the United States. Along with driving organic growth of its products,
AMAG intends to expand its portfolio with additional commercial-stage
specialty products. The company is seeking complementary products that
leverage the company's commercial footprint and focus on hematology and
oncology centers and hospital infusion centers. The company's primary goal is
to bring to market therapies that provide clear benefits and improve patients'
lives. For additional company information, please visit

AMAG Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations
(unaudited, amounts in thousands, except per share data)

                                     Three Months Ended  Twelve Months Ended
                                     December 31,        December 31,
                                     2013      2012      2013      2012
U.S. Feraheme product sales, net      $ 18,981  $ 14,381  $ 71,362  $ 58,287
Otherproduct sales and royalties     401       199       1,109     616
License fee and other collaboration   2,329     6,564     8,385     26,475
Total revenues                        21,711    21,144    80,856    85,378
Operating costs and expenses:                                    
Cost of product sales                 3,326     4,027     11,960    14,220
Research and development expenses     6,581     7,903     20,564    33,296
Selling, general and administrative   15,799    12,629    59,949    53,071
Restructuring expenses                --        595       --        2,215
Total operating costs and expenses    25,706    25,154    92,473    102,802
Operating loss                        (3,995)   (4,010)   (11,617)  (17,424)
Interest and dividend income, net     278       260       1,051     1,286
Gains on sale of assets               59        --        924       --
Gains (losses) on investments, net    4         3         40        (1,466)
Net loss before income taxes          (3,654)   (3,747)   (9,602)   (17,604)
Income tax benefit                    --        61        --        854
Net loss                              $ (3,654) $ (3,686) $ (9,602) $ (16,750)
Net loss per share:                                              
Basic and diluted                     $ (0.17)  $ (0.17)  $ (0.44)  $ (0.78)
Weighted average shares outstanding                              
used to compute net loss per share:
Basic and diluted                     21,743    21,446    21,703    21,392

AMAG Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheets
(unaudited, amounts in thousands)

                                          December 31, 2013 December 31, 2012
Cash and cash equivalents                  $ 26,986          $ 46,293
Short-term investments                     186,803           180,750
Accounts receivable, net                   6,842             6,410
Inventories                                17,217            12,451
Receivable from collaboration              278               263
Assets held for sale                       --                2,000
Other current assets                       6,279             6,213
Total current assets                       244,405           254,380
Property and equipment, net                1,846             3,297
Intangible assets, net                     16,844            --
Other assets                               2,364             460
Total assets                               $ 265,459         $ 258,137
Accounts payable                           $ 2,629           $ 3,515
Accrued expenses                           22,266            20,338
Deferred revenues                          8,226             9,104
Total current liabilities                  33,121            32,957
Deferred revenues                          44,534            50,350
Acquisition-related contingent             13,609            --
consideration, net
Other long-term liabilities                1,787             2,033
Total long-term liabilities                59,930            52,383
Total stockholders' equity                 172,408           172,797
Total liabilities and stockholders' equity $ 265,459         $ 258,137

About Feraheme® (ferumoxytol)/Rienso

Feraheme (ferumoxytol) Injection for Intravenous (IV) use received marketing
approval from the U.S. Food and Drug Administration (FDA) on June 30, 2009 for
the treatment of IDA in adult chronic kidney disease patients and was
commercially launched by AMAG in the U.S. shortly thereafter. Ferumoxytol is
protected in the U.S. by five issued patents covering the composition and
dosage form of the product, and approved method of use. Each issued patent is
listed in the FDA's Orange Book. These patents are set to expire in 2020; a
request for patent term extension has been filed, which, if granted, may
extend the patent term to 2023 for one of the patents.

Ferumoxytol received marketing approval in Canada in December 2012, where it
is marketed by Takeda as Feraheme, and in the European Union in June 2013 and
Switzerland in August 2013, where it is marketed by Takeda as Rienso™.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 and other federal
securities laws. Any statements contained herein which do not describe
historical facts, including but not limited to statements regarding: our
expectations and goals for 2014, including plans to maximize Feraheme sales
and increase market share, to increase utilization of MuGard and to expand our
product portfolio; our plans to work with Takeda on label expansion
initiatives outside of the U.S.; expectations regarding milestone payments;
our plans regarding the path forward for Feraheme and our intentions to
continue to work towards approval for an expanded label; expected revenues,
cost of goods sold, operating expenses and operating the business to break
even for 2014, are forward-looking statements which involve risks and
uncertainties that could cause actual results to differ materially from those
discussed in such forward-looking statements.

Such risks and uncertainties include, among others: (1) uncertainties
regarding the likelihood and timing of potential approval of AMAG's sNDA for
Feraheme in the U.S. in the broader IDA indication, (2) the possibility that
following FDA review of post-marketing safety data, including reports of
serious anaphylaxis, cardiovascular events, and death, the FDA will request
additional technical or scientific information, new studies or reanalysis of
existing data, on-label warnings, post-marketing requirements/commitments or
risk evaluation and mitigation strategies (REMS) in the current CKD indication
for Feraheme, (3) uncertainties regarding our and Takeda's ability to
successfully compete in the intravenous iron replacement market both in the US
and outside the US, including the EU, as a result of limitations, restrictions
or warnings in Feraheme's/Rienso's current or future label that put
Feraheme/Rienso at a competitive disadvantage, (4) uncertainties regarding
Takeda's ability to obtain regulatory approval for Feraheme in Canada, and
Rienso in the EU, in the broader IDA patient population, (5) the possibility
that significant safety or drug interaction problems could arise with respect
to Feraheme/Rienso and in turn affect sales, or the company's ability to
market the product both in the US and outside of the US, including the EU, (6)
uncertainties regarding the manufacture of Feraheme/Rienso or MuGard, (7)
uncertainties relating to our patents and proprietary rights, both in the US
and outside of the US, (8) the risk of an Abbreviated New Drug Application
(ANDA) filing following the FDA's recently published draft bioequivalence
recommendation for ferumoxytol, and (9) other risks identified in our
Securities and Exchange Commission filings, including our Quarterly Report on
Form 10-Q for the three months ended September 30, 2013 and subsequent filings
with the SEC. We caution you not to place undue reliance on any
forward-looking statements, which speak only as of the date they are made.

We disclaim any obligation to publicly update or revise any such statements to
reflect any change in expectations or in events, conditions or circumstances
on which any such statements may be based, or that may affect the likelihood
that actual results will differ from those set forth in the forward-looking

AMAG Pharmaceuticals and Feraheme are registered trademarks of AMAG
Pharmaceuticals, Inc.MuGard is a registered trademark of Access
Pharmaceuticals, Inc.Rienso is a trademark of Takeda Pharmaceutical Company

^1 U.S. Census; U.S. Renal Data System, USRDS 2010 Annual Data Report: Atlas
of Chronic Kidney Disease and End-Stage Renal Disease in the United States,
National Institutes of Health, National Institute of Diabetes and Digestive
and Kidney Diseases, Bethesda, MD, 2010: 41-42; Fishbane, S. et al. Iron
Indices in CKD in the NHANES 1998-2004. Clin J Am Soc Nephrol.2009
January;4(1): 57–61.

^2 Barton, James et al. Intravenous iron dextran therapy in patients with iron
deficiency and normal renal function who failed to respond to or did not
tolerate oral iron supplementation. Am J Medicine. 2000; 109: 27-32.

CONTACT: AMAG Pharmaceuticals, Inc. Contact:
         Amy Sullivan, 617-498-3303

AMAG Pharmaceuticals logo
Press spacebar to pause and continue. Press esc to stop.