AMAG Pharmaceuticals (AMAG)

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AMAG Pharma shares fall on weak 1Q results
AMAG Pharmaceuticals shares fall following lower-than-expected 1st-quarter results

On Wednesday April 28, 2010, 2:06 pm EDT
NEW YORK (AP) -- Shares of AMAG Pharmaceuticals Inc. fell Wednesday after the biotechnology company reported a wider first-quarter loss and weaker revenue than Wall Street expected.

The stock shed $3.42, or 9.3 percent, to $33.36 in afternoon trading. Shares earlier reached a 52-week low of $31.90. They have ranged from $33.11 to $58.23 over the past year.

On Tuesday, the company said it lost $23.1 million, or $1.15 per share, on revenue of $13.3 million during the quarter. Analysts polled by Thomson Reuters, on average, had forecast a loss of 85 cents per share on revenue of $16.8 million.

The bulk of the company's revenue comes from Feraheme, which treats iron deficiency anemia in chronic kidney disease patients.

Jefferies & Co. analyst Eun K. Yang reaffirmed a "Hold" rating on the stock with a $32 price target, citing the lower-than-expected Feraheme sales and wider-than-expected first-quarter loss.

"While its potential in non-dialysis remains, disappointing first-quarter sales suggests challenges it (Feraheme) faces in the competitive, pricing-sensitive intravenous iron market, with little advantages," Yang wrote in a note to investors.