AMAG Pharmaceuticals Announces Financial Results for the Third Quarter and Nine Months Ended September 30, 2012

• Year-over-year quarterly Feraheme® sales and provider demand
  growth continued
• Reduced operating expenses by 42% from the third quarter of 2011
• Updates financial guidance for 2012, raising Feraheme sales and
  lowering expense forecasts

LEXINGTON, Mass.–(BUSINESS WIRE)–Nov. 1, 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 third quarter ended September 30, 2012. The company
ended the third quarter of 2012 with approximately $211 million of cash,
cash equivalents and investments.

Business Update

• Total revenues for the third quarter of 2012 were $17.7 million, which
  included $16.2 of net U.S. Feraheme product revenues. As a result of
  actions taken earlier this year to improve the pricing dynamics for
  Feraheme, net revenue realized per gram of Feraheme increased in the
  third quarter of 2012 compared to the second quarter of 2012,
  reversing a historically downward trend.
• Feraheme provider demand¹ for the third quarter of 2012 was
  approximately 27,500 grams, an 11% increase over the third quarter of
  2011, with growth continuing to outpace IV iron market growth.
  Feraheme gained share in the hematology and hospital segments, with
  demand in these segments growing at 8% and 34%, respectively, compared
  to the third quarter of 2011.
• The company reported positive data from the second phase III clinical
  trials of Feraheme for the treatment of iron deficiency anemia
  regardless of the underlying cause and plans to submit a supplemental
  new drug application to the U.S. Food and Drug Administration in the
  fourth quarter of 2012.
• International expansion efforts for ferumoxytol are progressing as
  planned. The first shipment of ferumoxytol to support European launch
  of Rienso®, the brand name of ferumoxytol in Europe, occurred in the
  third quarter. Revenue from these sales has been deferred until the
  product has been sold to customers of Takeda Pharmaceuticals Company,
  Ltd., AMAG’s partner in the EU and Canada. Additionally, Feraheme was
  launched in Canada early in the fourth quarter, for which AMAG has
  received a $3 million milestone payment, and today, Rienso was
  launched in Europe. The first commercial sale of Rienso in Europe,
  which is expected shortly, triggers a $15 million milestone payment
  from Takeda.

“We are pleased to report the results of our strong third quarter
performance. Our updated full-year 2012 financial guidance is a direct
result of our renewed focus on Feraheme sales growth and aggressive
operating expense management,” commented William Heiden, president and
chief executive officer of AMAG. “While I am pleased with the growth
achieved in our U.S. Feraheme business this year, I believe that we can
do even better. Feraheme represents a tremendous opportunity for AMAG
and I want to ensure that we unlock its full potential — by maximizing
the number of adult IDA patients with chronic kidney disease who benefit
from Feraheme today, and broadening that to all IDA patients next year,
should we gain regulatory approval of an expanded label.”

Heiden continued, “Additionally, we have extended the international
reach of Feraheme/Rienso with launches in Canada and Europe, we remain
on-track for our fourth quarter sNDA filing in the U.S. for our Feraheme
label expansion and are making progress in our search to acquire
additional commercial products.”

Third quarter and Nine Month 2012 Financial Results (unaudited)

Total revenues for the quarter ended September 30, 2012 were $17.7
million, as compared to $17.6 million for the third quarter of 2011. For
the nine months ended September 30, 2012, AMAG reported total revenues
of $64.2 million, as compared to revenues of $46.3 million for the same
period in 2011. The increase in total revenues for the nine-month period
ended September 30, 2012 was due to increased physician demand for
Feraheme and the recognition of a $15 million milestone payment from
Takeda in 2012.

Net U.S. Feraheme product revenues for the third quarter of 2012 were
$16.2 million and include approximately $2.1 million in revenues
associated with changes in estimated Medicaid rebate and product returns
reserves. These reductions in estimated reserves reflect AMAG’s lower
Medicaid claims and product returns than originally recorded since
launch in 2009. For comparison, net U.S. Feraheme product revenues for
the third quarter of 2011 were $15.6 million and included $3.0 million
of revenues associated with a change in estimated Medicaid reserves.

Total cost of goods sold (COGS) for the quarter ended September 30, 2012
were $4.3 million, as compared to $2.7 million for the third quarter of
2011. Total COGS for the nine months ended September 30, 2012 were $10.2
million, as compared to $7.8 million for the same period in 2011. The
increase in COGS for the nine months ended September 30, 2012 is
primarily due to a $0.7 million increase in idle capacity charges and an
additional $1.8 million in non-cash charges related to the closure of
the company’s Cambridge, MA manufacturing facility.

Total operating expenses, excluding COGS, for the quarter ended
September 30, 2012 were $18.0 million, as compared to $32.1 million for
the third quarter of 2011. Total operating expenses, excluding COGS, for
the nine months ended September 30, 2012 were $67.5 million, as compared
to $98.8 million for the same period in 2011. The decreases in total
operating expenses in the 2012 periods were due to decreased research
and development costs associated with the company’s global IDA
registration program and decreased selling, general and administrative
expenses as the company realized the benefits of its streamlined cost
structure.

For the quarter ended September 30, 2012, the company’s net loss
decreased 76% to $4.0 million, or a loss of $0.19 per basic and diluted
share, as compared to a net loss of $16.6 million, or a loss of $0.78
per basic and diluted share, for the third quarter of 2011. AMAG’s net
loss for the nine months ended September 30, 2012 was $13.1 million, or
a loss of $0.61 per basic and diluted share, as compared to a net loss
of $58.5 million, or a loss of $2.76 per basic and diluted share for the
same period in 2011.

Updated Annual 2012 Financial Guidance

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

• Increased net Feraheme product revenue of $58 – $60 million, including
  the impact of changes in estimated reserves already recorded this
  year; and
• Reduced total operating expenses, excluding COGS, of $87 – $90 million.

AMAG confirms prior annual 2012 guidance for the following:

• COGS of approximately 20% – 24% of total product sales, which includes
  accelerated depreciation and idle capacity associated with the closure
  of the company’s manufacturing facility;
• Cash milestones totaling $33 million associated with regulatory
  approvals and commercial launches in the EU and Canada, $18 million of
  which have already been received; and
• A 2012 year-end cash and investments balance of $225 – $230 million,
  not including the impact of a business development transaction.

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 12:00 p.m. ET on November 1, 2012 until
midnight November 8, 2012. 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 37432497.

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 today at 8:00 a.m. ET. Following the conference call, the
webcast replay will be available today at approximately 10:00 a.m. ET
and will be archived on the AMAG Pharmaceuticals, Inc. website until
midnight November 30, 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, in
the European Union in June 2012, and in Switzerland in August 2012. For
additional product information, please visit www.feraheme.com.

About AMAG Pharmaceuticals, Inc.

AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG), a specialty
pharmaceutical company focused on the development and commercialization
of an intravenous iron to treat iron deficiency anemia (IDA). For
additional company information, please visit www.amagpharma.com.

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

Rienso is a registered trademark of Takeda Pharmaceutical Company, Ltd.

¹IMS Health Data (in grams) through the period ending
September 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 belief
that “we can do better,” our expectation to submit a supplemental new
drug application to the U.S. Food and Drug Administration by the end of
2012, our progress in our search to acquire additional products and our
expected financial results for the 2012 fiscal year, 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 possibility that significant
safety or drug interaction problems could arise with respect to
Feraheme, (4) uncertainties regarding the 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 June 30, 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