AMAG Pharmaceuticals Inc.AMAG

Morningstar Rating

Stock Research and Analysis

by Bill Buhr

AMAG Pharmaceuticals has long focused on developing products used with magnetic resonance imaging to help doctors diagnose cancer and heart disease. Now the company will throw its hat into the pharmaceutical arena, as its lead product candidate Feraheme Read more

Bulls Say

Feraheme could administer greater amounts of iron through an injection that takes less than a minute, significantly reducing treatment time and patient inconvenience.

Certain treatment methods for iron replacement, including oral iron supplements, have been known to cause discomfort, including cramping and diarrhea. Feraheme could potentially deliver more iron to patients without these side effects.

Feraheme demonstrated compelling data during its clinical trials, increasing hemoglobin levels in patients by statistically significant amounts compared with those receiving oral iron.

AMAG plans to sell Feraheme to dialysis and nondialysis CKD sufferers, a market that has sales potential of well over $1 billion. Read more

Bears Say

AMAG faces risks as a one-product company, as revenue from its two imaging products would not be enough to cover any commercial setbacks related to Feraheme.

Several competing iron replacement products are either in development or already on the market, so AMAG will probably have to demonstrate that Feraheme has a stronger safety profile than other options in order to gain the acceptance of doctors and patients.

AMAG has no experience marketing or commercializing drugs, which could lead to higher-than-expected operating expenses or reduced revenue during the drug's initial market phase. Read more

Strategy

While AMAG has two imaging products on the market, its primary focus will remain on its iron replacement drug, Feraheme, for CKD patients suffering from anemia. Feraheme was granted final approval from Read more

Management

Jerome Goldstein founded AMAG (formerly Advanced Magnetics) in 1981 and served as CEO until his retirement in November 2006. His successor, Brian Pereira, has been in management since 2005 and has served as a director since 2004. We think Pereira was Read more

Profile

Founded in 1981, AMAG Pharmaceuticals uses its nanoparticle technology to develop therapeutic compounds to treat anemia in patients suffering from chronic kidney disease, Read more

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