AMAG Pharmaceuticals, Inc. (AMAG) saw its loss widen to $36.56 million, or $1.06 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $7.53 million, or $0.22 a share. Revenue during the quarter grew 27.60 percent to $139.47 million from $109.30 million in the previous year period. Gross margin for the quarter contracted 156 basis points over the previous year period to 76.64 percent. Operating margin for the quarter stood at negative 28.70 percent as compared to a positive 6.81 percent for the previous year period.
Operating loss for the quarter was $40.02 million, compared with an operating income of $7.45 million in the previous year period.
However, the adjusted operating income for the quarter stood at $57.62 million compared to $47.49 million in the prior year period. At the same time, adjusted operating margin contracted 214 basis points in the quarter to 41.31 percent from 43.45 percent in the last year period.
"Today we are reaffirming our 2017 annual revenue guidance on our existing commercial portfolio of Makena, Feraheme and CBR based on the strong underlying fundamentals of those products," stated William Heiden, AMAG's president and chief executive officer. "While our commercial team drove higher physician-level Makena demand (distributor shipments to end users) in the first quarter of 2017 compared to the fourth quarter of 2016, first quarter 2017 ex-factory sales of Makena (shipments to distributors) decreased compared to the fourth quarter of 2016. The difference between demand and ex-factory sales was primarily due to a decline in channel inventory, as well as one-time items impacting net price in the first quarter of 2017."
For financial year 2017, AMAG Pharmaceuticals, Inc. forecasts revenue to be in the range of $625 million to $685 million. It forecasts adjusted revenue to be in the range of $630 million to $690 million. It projects net loss to be in the range of $88 million to $44 million for the same period.
Operating cash flow turns negative
AMAG Pharmaceuticals, Inc. has spent $14.54 million cash to meet operating activities during the quarter as against cash inflow of $26.58 million in the last year period. The company has spent $1.29 million cash to meet investing activities during the quarter as against cash outgo of $38.59 million in the last year period.
The company has spent $5.63 million cash to carry out financing activities during the quarter as against cash outgo of $13.30 million in the last year period.
Cash and cash equivalents stood at $252.85 million as on Mar. 31, 2017, up 24.32 percent or $49.46 million from $203.39 million on Mar. 31, 2016.
Working capital increases marginally
AMAG Pharmaceuticals, Inc. has recorded an increase in the working capital over the last year. It stood at $380.93 million as at Mar. 31, 2017, up 1.95 percent or $7.29 million from $373.64 million on Mar. 31, 2016. Current ratio was at 2.24 as on Mar. 31, 2017, down from 2.50 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 89 days for the quarter from 212 days for the last year period. Days sales outstanding went down to 55 days for the quarter compared with 70 days for the same period last year.
Days inventory outstanding has decreased to 51 days for the quarter compared with 158 days for the previous year period. At the same time, days payable outstanding went up to 17 days for the quarter from 16 for the same period last year.
Debt remains almost stable
AMAG Pharmaceuticals, Inc. has recorded a decline in total debt over the last one year. It stood at $985.35 million as on Mar. 31, 2017, down 0.52 percent or $5.13 million from $990.48 million on Mar. 31, 2016. Total debt was 40.68 percent of total assets as on Mar. 31, 2017, compared with 40.04 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 1.07 as on Mar. 31, 2017, when compared with the last year.
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