AMAG Pharmaceuticals (AMAG) didn't please investors one bit when the company announced its results in May. Revenue fell 35% while its net loss worsened.
Any hopes for better results in the second quarter were dashed when AMAG announced its Q2 results before the market opened on Wednesday. Here are the highlights of the company's second-quarter update.
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By the numbers
AMAG reported revenue in the second quarter of $78.1 million. This reflected a 47% decrease from the prior-year period revenue total of $146.3 million. Wall Street analysts projected Q2 revenue of $91.8 million.
The drugmaker posted a net loss in the second quarter of $120.8 million, or $3.57 per share, on the basis of generally accepted accounting principles (GAAP). This reflected significant deterioration from the prior-year period GAAP net loss of $20.1 million, or $0.58 per share. Analysts were anticipating a Q2 adjusted net loss of $0.57 per share.
AMAG ended the second quarter with cash, cash equivalents, and short-term investments of $261 million. This was a slight decline from the $266.5 million reported in the quarter ended March 31, 2019.
Behind the numbers
There was one overriding factor weighing on AMAG's Q2 results: The company decided to quit selling its progestin drug Makena in the intramuscular market. This decision was based on continued supply disruptions and increased generic competition. The net year-over-year impact of AMAG exiting this market totaled nearly $102 million.
However, as horrible as AMAG's Q2 results were, there was some good news. Sales for its Makena subcutaneous auto-injected drug soared 204% year over year to $41 million. AMAG reported that sales for anemia drug Feraheme climbed 12% to $42.1 million. Sales for Intrarosa were $4.9 million, up 53% from the prior-year period.
AMAG was also pleased with its market share growth for these drugs. The company said the Makena subcutaneous auto-injector achieved a 63% market share. Feraheme and Intrarosa both captured their highest market shares yet, at 17.2% and 4.8%, respectively.
Despite these positive developments, though, AMAG couldn't overcome the big hit from exiting the intramuscular market with Makena. It also didn't help in year-over-year bottom-line comparisons that the company benefited from a one-time adjustment of $49.8 million in the prior-year period.
Looking ahead
The company lowered its full-year 2019 guidance based on the dismal performance in Q2. AMAG now projects total revenue between $325 million and $355 million for the year, down from its previous forecast of a range of $365 million to $415 million. The company's operating loss is expected to be between $276 million and $286 million. AMAG previously expected an operating loss of $176 million to $206 million.
Investors should look forward to one potential bright spot for AMAG in the near future: the national launch of Vyleesi in September. The drug received FDA approval in June for treating acquired, generalized hypoactive sexual desire disorder (HSDD) in premenopausal women.
