AMAG Pharmaceuticals, Inc. (AMAG) provided preliminary results for the fourth quarter and full year 2014 as well as its 2015 financial guidance. The outlook includes the company’s recently concluded acquisition of privately held company Lumara Health Inc.
Preliminary Results for Q4 and 2014
AMAG expects its fourth quarter 2014 sales to be in the range of $52.8 million to $54.5 million including net product sales between $47.2 million and $48.2 million. Total revenues as per the Zacks Consensus Estimate are $35 million.
AMAG’s net product sales guidance includes U.S. Feraheme sales of $23.8 million and $24.3 million and around $23.1 million to $23.6 million of Makena sales, which was added to its portfolio with the Lumara acquisition. AMAG expects fourth quarter pro forma net product sales (total net product sales if the acquisition of Lumara Health had occurred at the beginning of the fourth quarter) between $72.7 million and $74.7 million.
For 2014, AMAG expects total revenues to be in the range of $123.8 million to $125.5 million including net product sales in the range of $110.1 million to $111.1 million. The Zacks Consensus Estimate for total revenues currently stands at $107 million.
AMAG’s 2014 net product sales guidance includes U.S. Feraheme sales of $85.8 million and $86.3 million and around $23.1 million to $23.6 million of Makena sales. U.S. Feraheme sales for 2014 represent 19% growth year over year driven by significant increases in volume along with increasing net revenue per gram. Pro forma net product sales for 2014 are expected in the range of $252 million to $255.5 million.
The company’s total operating expenses for the fourth quarter and full year are expected in the range of $41.5 million to $42.8 million and $104.6 million to $105.9 million respectively.
2015 Guidance
Apart from its fourth quarter and full year 2014 preliminary results, the company also provided its guidance for 2015.
2015 total revenues are expected in the range of $380 million to $420 million including net product sales between $335 million and $375 million. The Zacks Consensus Estimate for total revenues currently stands at $368 million. The company’s net products sales guidance for 2015 includes Makena net sales between $245 million and $270 million, Feraheme and MuGard net sales between $90 million and $105 million and collaboration revenue of around $45 million.
Moreover, AMAG is expecting cash earnings of around $150 million to $170 million for 2015.
AMAG awaits several regulatory decisions and data announcement in 2015 including a decision from the FDA on the approval of the 1 ml dose of Makena expected in the second quarter of 2015. The drug is currently approved for the 5 ml dose. In addition to that, the company is also expecting a feedback from the FDA in relation to the study design of the broader label of Feraheme which was submitted last year.
Our Take
The company’s preliminary results and its 2015 guidance look impressive. We note that last month AMAG regained worldwide development and commercialization rights to Feraheme after the company and partner, Takeda Pharmaceutical Company Ltd. (TKPYY), mutually terminated their agreement (read more: AMAG, Takeda Mutually End Agreement for Feraheme).
AMAG’s focus will primarily remain on Feraheme. Meanwhile, the addition of Makena will reduce its dependence on Feraheme. We expect investor focus to remain on both the products going forward.
AMAG currently carries a Zacks Rank #1 (Strong Buy). Some equally well-ranked stocks in the health care sector include Affymetrix Inc. (AFFX) and Amgen Inc. (AMGN).
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