AMAG Pharmaceuticals (AMAG)

[mlkrborn]

AMAG Pharma announces realignment of operating cost structure to focus on continued Feraheme growth and business development activities (AMAG) 14.89 -0.16 : Co announced a number of changes to its operating expenses that further align its cost structure with the company's focus on advancing Feraheme and expanding its product portfolio with commercial stage assets. First, AMAG is moving to an outsourced manufacturing model and intends to divest the company's manufacturing facility in Cambridge, MA. Additionally, the company's global phase III broad iron deficiency anemia (IDA) clinical program for Feraheme, which will support an sNDA filing later this year, will conclude this year. Along with the natural attrition of external development costs associated with the conclusion of the IDA development program, AMAG is reducing internal development expenses to match the reduced activities at this time, and will continue to adapt development resources to meet the company's future development needs. By year-end 2012, AMAG expects to reduce its workforce by approximately 45 positions. The company expects to incur approximately $1.0 million in charges associated with the restructuring, which will be spread over the remainder of 2012, with $0.5 million expected to be recognized in the second quarter of 2012. The company may provide updated 2012 financial guidance when it reports second quarter financial results.