AMAG Pharmaceuticals to cut 30% of staff as part of restructure

Photo by Rhoda Baer

AMAG Pharmaceuticals announced that it will cut 30% of its staff, or 140 jobs, as part of a companywide restructuring.

The company had an operating loss of $19.6 million in the last quarter, with overall total revenues amounting to $68.7 million. The impact of the COVID-19 coronavirus has had an effect on the layoffs.

Scott Myers, the President and Chief Executive Officer of AMAG, commented on the restructuring and said: “We are sharpening our focus on our priorities of maximizing Feraheme’s value, retaining patient access to Makena and continuing to efficiently develop innovative therapies, namely ciraparantag.

“As we look to the future, it is difficult to estimate the severity and duration of the COVID-19 pandemic. We’ve seen signs of stabilization and remain confident in the underlying demand for our products; however, we cannot speculate on the subsequent speed of recovery and the overall impact on our business.”

The company also have had to put various clinical trials on hold due to the pandemic, including the AMAG-423 Phase IIb/IIIa study.

Ted Myers, AMAG’s Chief Financial Officer also spoke on the layoffs, saying: “We continue to strive towards returning to profitability this year. The work force reduction that we announced today is an important step towards achieving these corporate objectives.

“While it was a difficult decision, we believe the organization is now the right size to support our long-term goals. We’d like to thank our colleagues who are leaving AMAG for their many contributions to our organizations."

Conor Kavanagh