AMAG Fights Back (AMAG)

February 5, 2010 · Filed Under Anemia, Financial 

AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG) has had a very tough week, whether it was a market with a bad trading tape or not.  The stock’s weakness was after an analyst from a relatively unknown firm called Summer Street downgraded the stock to Neutral from Buy over concerns that Feraheme patients are being hospitalized with severe allergic reaction events.  Shares were above $45.00 on Wednesday, yet the stock went as low as $35 today before word that a rebuttal was coming.  Then after the close, the company is out defending itself showing that the risks here are very low and may not be any different than previously thought.

After the close of trading today, the maker of treatments for anemia and imaging agents provided a safety update on Feraheme®.  The company noted, “Since the commercial launch of Feraheme in July 2009, serious adverse events have been reported at a rate consistent with that contained in the U.S. package insert. Of the estimated 35,000 patient exposures to date, 40 serious adverse events have been reported, an approximate rate of 0.1 percent. No mortality signal has been observed. A single reported death occurred in a patient two days post-Feraheme treatment, which the Company does not believe was the result of Feraheme.”

Shares closed down 0.9% at $37.77 today, and shares are now up 5% at $39.75 in the after-hours trading session.  Including the after-hours trading this one has traded 4.6 million shares today versus an average volume of 630,000 shares.

The drop today was not with as much volume as the stock traded over 8.5 million shares on Thursday.  The 52-week range is $22.20 to $58.23 and the market cap here is $647 million as of the closing price.

JON C. OGG

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