January 11, 2010 / 4:30 PM / 10 years ago

AMAG shares rise on strong revenue outlook for anemia drug

(Reuters) - Shares of AMAG Pharmaceuticals Inc (AMAG.O) rose as much as 16 percent Monday, a day after the biopharmaceutical company provided a strong fourth-quarter revenue outlook for its injectable anemia medicine Feraheme.

On Sunday, the company said for the fourth quarter it expects Feraheme net product revenue between $12 million and $13 million.

Canaccord Adams analyst Adam Cutler, who has a “buy” rating on AMAG shares, said Feraheme revenue outlook was ahead of his Feraheme estimate of $6.3 million.

“We expect long-term Feraheme growth to be driven by the non-dialysis setting, which offers a faster sales cycle and no exposure to the pending bundled payment system that will impact the dialysis setting,” Cutler said.

AMAG estimates that about 60 percent of Feraheme demand through the first five months of launch was outside of the dialysis setting.

Shares of the company were trading up 15 percent at $46.64 Monday on Nasdaq.

Reporting by Anand Basu in Bangalore; Editing by Aradhana Aravindan

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