Amag Pharma Bulls Still Have Hope

The FDA delayed approval of Amag key anemia drug, but things still look good.
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Late Monday night, Amag Pharmaceuticals (AMAG) - Get Report reported that the Food and Drug Administration asked for more information on Amag's key anemia drug ferumoxytol before the FDA could consider the drug for approval.

This was definitely a slight snag for the Amag bulls, who were hoping for an outright approval of Ferumoxytol by Dec. 30.

Generally speaking, an FDA-educed delay is a potential death knell for a cash-strapped single-drug-dependent biotech firm, as was the case with

Dendreon

(DNDN)

, which was forced to run an additional phase III trial of its breakthrough drug Provenge. But things at Amag are a bit different, and investors should pay attention.

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