AMAG Announces Financial Results for the Second Quarter and Six Months Ended June 30, 2012

• Full-year 2012 financial guidance updated based on strong
  first-half demand of Feraheme
• Product revenue and provider demand increased for second
  consecutive quarter
• Operating expenses down approximately 30% from the second
  quarter of 2011
• Ferumoxytol approved in Europe triggering $15 million milestone

LEXINGTON, Mass.–(BUSINESS WIRE)–Jul. 26, 2012–
AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG), a specialty pharmaceutical
company focused on the development and commercialization of Feraheme®
(ferumoxytol) Injection for intravenous (IV) use to treat iron
deficiency anemia (IDA), today reported unaudited consolidated financial
results for the second quarter ended June 30, 2012.

Business Update

• Feraheme net product revenues in the United States for the second
  quarter of 2012 were $14.1 million, a 10% increase from the $12.8
  million reported in the second quarter of 2011.
• Feraheme provider demand¹ for the second quarter of 2012
  reached a record level of approximately 28,200 grams, a 15% increase
  from the second quarter of 2011.
• AMAG took further steps to streamline its cost structure in the second
  quarter. As previously announced, the company plans to divest its
  manufacturing facility and reduce its workforce by 45 positions.
• Ferumoxytol was approved in the European Union in June 2012 for the
  treatment of IDA in adult patients with chronic kidney disease, which
  triggered a $15 million milestone payment from Takeda Pharmaceutical
  Company Limited.
• The company reported positive data from two phase III clinical trials
  of Feraheme for the treatment of IDA regardless of the underlying
  cause and plans to submit a supplemental new drug application to the
  U.S. Food and Drug Administration by the end of 2012.

“Since joining AMAG, I have been focusing on our two key financial
growth drivers. First, is to ensure that Feraheme reaches its full
commercial potential and second, to add complimentary products to our
portfolio. I am confident that success on these two fronts will create
significant value for AMAG shareholders,” commented William Heiden,
president and chief executive officer of AMAG. “With another strong
quarter of growing Feraheme revenues and continued aggressive operating
expense management under our belt, I believe that our core business is
sound and we are indeed ready to add additional products to our
portfolio, leveraging our commercial footprint and driving us to
profitability.”

Second Quarter and Six Month 2012 Financial Results (unaudited)

Total revenues for the quarter ended June 30, 2012 were $31.0 million,
as compared to $15.4 million for the second quarter of 2011. For the six
months ended June 30, 2012, AMAG reported total revenues of $46.5
million, as compared to revenues of $28.8 million for the same period in
2011. The change in total revenues in 2012 versus the comparable 2011
periods was due to increased physician demand for Feraheme and the
recognition of a $15 million milestone associated with European
regulatory approval of ferumoxytol in the second quarter of 2012.
Revenues in the three- and six-months ended June 30, 2012 were favorably
impacted by a reduction of reserves for product returns of $0.6 million
and $1.1 million, respectively.

Total operating costs and expenses for the quarter ended June 30, 2012
were $27.1 million, as compared to $35.6 million for the second quarter
of 2011. Total operating costs and expenses for the six months ended
June 30, 2012 were $55.3 million, as compared to $71.8 million for the
same period in 2011. The decreases in total operating costs and expenses
in the 2012 periods were due to decreased research and development costs
associated with the company’s global iron deficiency anemia (IDA)
registrational program and decreased selling, general and administrative
expenses as the company realized the benefits of its streamlined cost
structure.

The company reported net income of $3.3 million, or $0.16 per basic and
$0.15 per diluted share, for the quarter ended June 30, 2012, as
compared to a net loss of $19.6 million, or a loss of $0.92 per basic
and diluted share, for the second quarter of 2011. AMAG reported a net
loss for the six months ended June 30, 2012 of $9.1 million, or a loss
of $0.43 per basic and diluted share, as compared to a net loss of $41.9
million, or a loss of $1.98 per basic and diluted share for the same
period in 2011.

As of June 30, 2012, the company’s cash, cash equivalents and
investments totaled approximately $207 million. The $15 million dollar
milestone payment from Takeda was recognized as revenue in the second
quarter of 2012; however, the payment was received in July 2012 and is
therefore not included in the June 30, 2012 cash balance.

“During the second quarter, we also took important actions that led to
multiple one-time items in our financial statements,” said Frank E.
Thomas, executive vice president and chief operating officer of AMAG.
“From de-risking our investment portfolio through the liquidation of our
remaining auction rate securities, to streamlining our cost structure
and taking the steps necessary to move to a completely outsourced
manufacturing model, we believe these actions will strengthen our
business and lead to more predictable operating margins in future
periods.”

2012 Financial Guidance

The company is updating its 2012 financial guidance. AMAG now expects:

• Net Feraheme product revenues of $55 – $58 million, excluding any
  royalties and product sales outside the U.S.;
• Milestones achieved totaling $33 million associated with regulatory
  approvals and commercial launches in the EU and Canada;
• Cost of goods sold (COGS) of approximately 20% – 24% of total product
  sales, which now includes accelerated depreciation and idle capacity
  associated with the planned closure of the company’s manufacturing
  facility;
• Total operating expenses, excluding COGS, of $90 – $95 million,
  including one-time charges associated with the planned closure of the
  company’s manufacturing facility and employee-related restructuring
  charges; and
• A 2012 year-end cash and investments balance of $225 – $230 million,
  excluding cash utilized to acquire or in-license additional marketed
  products.

Conference Call and Webcast Access

AMAG Pharmaceuticals, Inc. will host a conference call and webcast with
slides today at 8:00 a.m. ET. To access the conference call via
telephone, dial 877-412-6083 from the United States or 702-495-1202 for
international access. A telephone replay of the conference call will be
available from approximately 10:00 a.m. ET on July 26 until midnight
July 28. To access the replay, dial 855-859-2056 from the United States
or 404-537-3406 for international access. The passcode for the live call
and the telephone replay is 10874179.

A live webcast of the conference call and accompanying slides will be
accessible through the Investors section of the Company’s website at www.amagpharma.com
beginning at 8:00 a.m. ET. Following the conference call, the webcast
replay will be available at approximately 10:00 a.m. ET and will be
archived on the AMAG Pharmaceuticals, Inc. website until midnight August
26, 2012.

About Feraheme

In the United States, Feraheme® (ferumoxytol) Injection for Intravenous
(IV) use is indicated for the treatment of iron deficiency anemia in
adult chronic kidney disease (CKD) patients. Feraheme received
marketing approval from the U.S. Food and Drug Administration on June
30, 2009 and was commercially launched by AMAG in the U.S. shortly
thereafter. Ferumoxytol received marketing approval in Canada in
December 2011 and in the European Union in June 2012. For additional
product information, please visit www.feraheme.com.

About AMAG Pharmaceuticals, Inc.

AMAG Pharmaceuticals, Inc. is a biopharmaceutical company that
manufactures and markets Feraheme® in the United States. For
additional company information, please visit www.amagpharma.com.

AMAG Pharmaceuticals and Feraheme are registered trademarks of
AMAG Pharmaceuticals, Inc.

¹IMS Health DDD Data (in grams) through the period ending
June 30, 2012.

Forward-looking Statements

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 and
other federal securities laws. Any statements contained herein which do
not describe historical facts, including but not limited to, our
intention to divest our manufacturing facility and reduce our workforce
by 45 positions, our expectation to submit a supplemental new drug
application to the U.S. Food and Drug Administration by the end of 2012,
our belief that we are ready to add additional products to our
portfolio, and our belief that our recent initiatives will strengthen
our business and lead to more predictable operating margins in future
periods, are forward-looking statements which involve risks and
uncertainties that could cause actual results to differ materially from
those discussed in such forward-looking statements.

Such risks and uncertainties include: (1) uncertainties regarding our
and Takeda’s ability to successfully compete in the intravenous iron
replacement market both in the U.S. and outside the U.S., (2)
uncertainties regarding our ability to successfully and timely complete
our clinical development programs and obtain regulatory approval for
Feraheme in the broader IDA indication and in territories outside of the
U.S., including the European Union, (3) the fact that significant safety
or drug interaction problems could arise with respect to Feraheme, (4)
uncertainties regarding our ability to manufacture Feraheme, (5)
uncertainties relating to our patents and proprietary rights, (6)
uncertainty regarding our ability to acquire additional products for our
portfolio, and (7) other risks identified in our Securities and Exchange
Commission filings, including our Quarterly Report on Form 10-Q for the
quarter ended March 31, 2012. We caution you not to place undue reliance
on any forward-looking statements, which speak only as of the date they
are made.

We disclaim any obligation to publicly update or revise any such
statements to reflect any change in expectations or in events,
conditions or circumstances on which any such statements may be based,
or that may affect the likelihood that actual results will differ from
those set forth in the forward-looking statements.

Source: AMAG Pharmaceuticals, Inc.

AMAG Pharmaceuticals, Inc.
Amy Sullivan, 617-498-3303