Amag’s Makena supply issues ‘more dire than thought,’ says Piper Jaffray

Piper Jaffray analyst Christopher Raymond said that Amag Pharmaceuticals made what he would consider material additional disclosures in today’s 10-Q filing that he did not hear during the company’s earnings call yesterday regarding Makena supply disruptions. The company now states that Makena supply disruptions are expected to result in a stock-out of the multi-dose, 5mL vial “in the near future,” which Raymond said is a change from last quarter’s filing, which indicated supply limitations were confined to the single-dose, 1mL vial. The company also pointed to the potential for supply issues with Makena’s SubQ auto-injector format, though that language “may be out of an abundance of caution,” Raymond said. While he is not lowering his estimates, the filing details may indicate potential downside risk to Makena estimates, said the analyst, who keeps a Neutral rating on Amag shares.
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