LEXINGTON, Mass.—AMAG Pharmaceuticals, Inc. shares rose 16 percent Jan. 10 after the company announced a strong fourth-quarter 2009 revenue outlook for its injectable anemia drug Feraheme, reported Reuters.
AMAG expects to report fourth quarter 2009 Feraheme net product revenues of between $12 million and $13 million (unaudited), including approximately $1 million of the $11.5 million in previously deferred product revenues. The company expects that utilization of the remaining deferred product revenues from the launch incentive program, which were recorded during third quarter 2009, will increase going forward as each launch incentive program customer has now initiated a pilot program and begun to use Feraheme.
These deferred revenues will be recognized when the purchases are utilized by these customers; no new deferred revenues are expected to be recorded during fourth quarter 2009. AMAG continues to expect that total operating expenses for fourth quarter of 2009 will be higher than those reported for third quarter 2009, due primarily to increases in both research and development expenses and commercial spending.
AMAG estimates that about 60 percent of Feraheme demand through the first five months of launch was outside of the dialysis setting.
