AMAG Hires Financial Advisor - Analyst Blog
18 Novembre 2011 - 2:00PM
Zacks
AMAG Pharmaceuticals Inc. (AMAG) recently
announced that it has hired Jefferies & Company,
Inc. (JEF) as financial advisor to help it evaluate
strategic alternatives to enhance stockholder value. The options
under the anvil would also include a potential sale, merger or
acquisition. Jefferies and Company is expected to show AMAG the
best path forward, by leveraging its core assets. AMAG’s core
assets are its sole marketed product Feraheme, its balance sheet
and its infrastructure.
Feraheme, which is not doing too well currently, is an
injectable drug for intravenous use as an iron replacement therapy
for the treatment of iron deficiency anemia (IDA) in adult patients
suffering from chronic kidney disease (CKD).
Amid all the financial uncertainties, AMAG announced the
resignation of its president and chief executive officer (CEO)
Brian J.G. Pereira early this month. The company continues to look
for a permanent CEO.
Late last month, AMAG announced the termination of the deal to
merge with Colorado based Allos Therapeutics, Inc.
(ALTH). AMAG had entered into an agreement to merge with Allos in
July this year in an all stock deal that had a total equity value
of $686 million. The deal failed to receive sufficient shareholder
votes necessary for consummation. AMAG management instead decided
to restructure its expenses, including a workforce reduction of
25%, to bring it in line with expected sales from Feraheme.
Our Recommendation
We currently have an Outperform recommendation on the stock. The
stock carries a Zacks #2 Rank (short term “Buy” rating). We are
pleased with the company’s proactive efforts to redress its
problems and drive shareholder value by exploring strategic
alternatives. The hiring of a reputed advisory firm is a step in
the right direction.
ALLOS THERAPEUT (ALTH): Free Stock Analysis Report
AMAG PHARMA INC (AMAG): Free Stock Analysis Report
JEFFERIES GP-NW (JEF): Free Stock Analysis Report
Zacks Investment Research
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