Today, an analyst from Leerink, Joseph Schwartz came out with a note that stated shares of AMAG are falling because of worries about the drug Makena after “the Abbreviated New Drug Approval was granted to McGuff Pharmaceuticals for the generic version of Bristol-Myers’ long-since withdrawn hydroxyprogesterone caproate Delalutin,” according to The Fly on the Wall.
AMAG Pharmaceuticals Stock Price Decline a Buy Opportunity, According to Analyst
The analysis, who feels that this dip is an opportunity to add shares, continues to state that the approved indication is not in pregnancy and that he sees a high likelihood that “the drug is contraindicated for use in pregnant women, similar to the original label of Delalutin.”
He finished his analysis by concluding that, “AMAG has orphan drug exclusivity until Feb. 2018,” stating that he views today’s pullback as “overdone and keeps an Outperform rating on the name. [AMAG’s] Makena injection is a prescription hormone medicine used to lower the risk of preterm birth in women.”
As AMAG Pharmaceuticals is a company we have kept a watch on for the last couple of months, we’ll continue to monitor the story for further developments.
We have no position in AMAG.