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» AMAG Pharmaceuticals, Inc. Q2 2010 Earnings Call Transcript
We've had historically a decline price due to discounting, but I am happy to report that we took our first price increase every on May 1, so in Q3, we expect to see net price program starting to turn around and begin to grow, and so we'll have a nice multiplicative effect on our Feraheme sales, and so Feraheme is our flagship brand. We've got about 70 people across the U.S. who are selling Feraheme.We've also have announced some recent approvals internationally in Europe, Canada and just last week in Switzerland, and so we will be seeing launches in double-digit royalties and milestones flowing to AMAG on the international basis. On top of that, we are building a company focused on the oncology/hematology in hospital space, which is where call on today in order to promote Feraheme, so we are looking to build out the portfolio with the purchaser in-licensing of commercial assets to leverage those call points. The company on a whole will breakeven in 2012. For the first time, we will breakeven primarily or at least partially due to $33 million in milestones, so as we go forward and look to 2013, there's a $33 million GAAP if you like, but with sales continuing to grow, operating expenses continuing to decline, we like the idea of adding in an additional marketed asset or two in order to leverage the existence of this high-powered commercial team that we have out there and make the crossover into profitability, so that's really what we are focused on. Feraheme is number one priority. It's continuing to grow. Feraheme in terms of grams and into profitability, so that's really what we are focused at Feraheme is number one priority. It's continuing to grow Feraheme in terms of grams, and that selling price and second is the successful business development initiative to identify commercial assets with strong IP and preferably in in-office injectable, so that we can leverage our current sales force and cross-over into profitability.
David Friedman - Morgan StanleyGreat. Thanks. Maybe if we can just start with one broader question, which is you guys have made fairly significant headway in rightsizing your business versus your current opportunity, and it's something that I think a lot of small and midcap biotech companies struggle to do, and frankly don't do very well, so can you maybe just briefly touch on the changes that you've made within the organization 12 months back and any changes that are coming in the next 12 months in terms of you guys have had manufacturing changes, sales force changes, and just talk a little bit about how you've set the organization up for this next leg, because again it is fairly unique among a lot of single-product companies right now. Bill Heiden Let me just mention broadly, and then I'll ask Frank to go through a bit more detail. I think one of the overriding goals of some of the changes we have made is to form ourselves into a true specialty pharma company, where we have flexibility, so on the development side historically; the company had a large development organization. Going forward, we are going to have a small flexible team that can flex by external partners and also take in development when we need to and then to remain small and lean during times when we are not doing development. Similar on the manufacturing side, we didn't feel it made sense for us any longer as a one-product company or even a two or three-product Company to have our own manufacturing. Outsourcing manufacturing gives us tremendous flexibility as a specialty pharma company. Lastly, I will just mention we have right-sized the commercial organization. It was much larger in the past, but we did some very, very detailed analytics looking at the opportunity that we have in the IV iron market and now have right-sized our commercial organization to 43 sales territories and a total of about 70 people in the field and we think that's right-sized. Read the rest of this transcript for free on seekingalpha.com