AMAG (AMAG) to Report Q2 Earnings: What's in the Cards?

Investors will primarily focus on the performance of marketed drugs Feraheme and Makena during AMAG Pharmaceuticals Inc.’s AMAG second-quarter 2019 earnings call.

In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 503.64%. Moreover, AMAG’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, the average negative surprise being 180.50%.

The company’s shares have declined 42% year to date against  the industry’s growth of 0.5%.

What Our Model Indicates

Our proven model shows that AMAG is likely to beat earnings estimates in the to-be-reported quarter. This is because a stock needs to have — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to be able to beat estimates.

Earnings ESP: AMAG has an Earnings ESP of +16.67% as the Zacks Consensus Estimate is pegged at a loss of 48 cents and the Most Accurate Estimate at a loss of 40 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3, which increases the predictive power of ESP.

Note that Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement are best avoided.

Let’s see how things are shaping up for this announcement.

Factors at Play

AMAG has three marketed products in its portfolio. One of these is Feraheme (ferumoxytol), which is approved as an intravenous (IV) iron replacement therapy for the treatment iron-deficiency anemia (IDA) in adults with chronic kidney disease (CKD). Makena (hydroxyprogesterone caproate injection), a progestin, is approved to reduce the risk of preterm birth in women pregnant with a single baby, who have a history of singleton spontaneous preterm birth. The third product is MuGard, approved for the management of oral mucositis and stomatitis.

Makena and Ferahame are the primary sources of revenues for AMAG and the drugs are expected to perform well in the second quarter. Though Makena sellers are affected by entry of generic competition to the Makena IM product and IM supply constraints, the company is encouraged by strong underlying demand for the expanded label of the drug as a subcutaneous auto-injector. , and the progress made to replace its previous primary supplier of Makena IM with new inventory from two suppliers in the second quarter of 2019.

The company has also expanded the label of Feraheme. The FDA approved a label expansion of the drug beyond the current CKD indication. The new approval includes all eligible adult Iron Deficiency Anemia (“IDA”) patients, who have intolerance to or have had unsatisfactory response to oral iron. The drug is already capturing additional market share and expected to continue the trend in the second quarter of 2019.

In June 2019, AMAG announced that the FDA approved Vyleesi (bremelanotide injection) to treat acquired, generalized hypoactive sexual desire disorder (HSDD) in premenopausal women. The drug is an injection to be taken before sex and the first treatment for this patient population. Vyleesi will be commercially available this September. We expect management to discuss launch plans during the earnings call.

AMAG’s Intrarosa (prasterone), approved by the FDA to treat women experiencing moderate-to-severe pain during sexual intercourse (dyspareunia), a symptom of vulvar and vaginal atrophy (VVA), is the first and only non-estrogen product to treat dyspareunia in the United States. The company is optimistic about the drug.

 

AMAG Pharmaceuticals, Inc. Price and Consensus

 

AMAG Pharmaceuticals, Inc. Price and Consensus

AMAG Pharmaceuticals, Inc. price-consensus-chart | AMAG Pharmaceuticals, Inc. Quote

Other Stocks That Warrant a Look

Here are some other large-cap pharma stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Gilead Sceinces Inc. GILD has an Earnings ESP of +3.69% and a Zacks Rank #2. The company is scheduled to release second-quarter 2019 results on Jul 30. You can see the complete list of today’s Zacks #1 Rank stocks here.

Regeneron Pharmaceuticals, Inc. REGN has an Earnings ESP of +6.25% and a Zacks Rank #3. The company is scheduled to release second-quarter 2019 results on Aug 6.

Alexion Pharmaceuticals Inc. ALXN has an Earnings ESP of +3.10% and a Zacks Rank #1. The company is scheduled to release second-quarter 2019 results on Jul 24.

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