LEXINGTON, Mass. (AP) – Amag Pharmaceuticals Inc. said it hired Jefferies & Co. as an adviser as it considers its strategic options, including a possible sale of the company.
The company said Jefferies will help it review options that can improve shareholder value and leverage its assets, including its iron deficiency drug Feraheme, its sales operations, drug development pipeline, and balance sheet. The company said it had $250 million in cash and no debt as of Sept. 30.
Earlier this year Amag agreed to buy Allos Therapeutics Inc., which makes the lymphoma drug Folotyn. However Amag’s shareholders voted down the deal in October. In November, CEO Brian Pereira and Chief Commercial Officer Gary Zieziula left the company, and Amag said it will restructure its operations and eliminate around 25 percent of its jobs. It said those moves will allow it to save $20 million to $25 million per year and bring its costs closer in line with expected sales of Feraheme.
Feraheme is used to treat iron deficiency anemia in adults who have chronic kidney disease.
Chief Financial Officer Frank Thomas is serving as interim CEO, and the company said it is still searching for a new CEO.
Date: November 17, 2011
Source: Associated Press
