2009 Bio Darling- AMAG- The LONG view

Discussion in 'Stocks' started by stonedinvestor, Jul 9, 2007.

  1. Well folks you have to construct portfolios with the proper balance of momentum AND longer view stocks, looking out to 2008 and beyond there's one I am really HIGH on- Advanced Magnetics.

    AMAG develops nanoparticle iron oxides for big pharma it has two products under the hood, one that is designed to treat anemia and one to give advanced diagnostic pictures from MRI's--

    The MRI image enhancer is called Combidex the FDA has said that it CAN be approved subject to additional data...

    The big one for AMAG is Ferumoxytol. AMAG has lined up an impressive team to launch Ferumoxytol former senior execs from Idenix Pharma Genzyme & Sepracor!

    Ferumoxytol is an iron-replacement drug.

    > 18 months ago AMAG got a new leader Brian Pereira. He has not spoken to me directly but I understand he is VERY NERVOUS because the FDA will issue a verdict on Ferumoxytol in the autumn of 2008.

    > Having had a friend pass away from cancer I have seen what anemia does to people it's not pretty but what's even uglier is the Pfizer product to treat it- Procreat I think it was called
    it basically opened the coffin door and ushered him through. Things began to go horribly wrong on this stuff and other competing products from Watson Pharm and American Regent have their own faults.

    > For now Ferumoxytol is to treat anemia in patients with chronic kidney disease whether or not they need dialysis.

    > 3 PHASE 3 Trials have been done and the data has been positive. A FOURTH IS ABOUT TO CONCLUDE! This should be the spark that ignites the engine that aims this mothership up.

    > Based on WHAT WE ALREADY KNOW-
    Ferumoxytol will be the SAFEST, MOST CONVENIENT and most EFFECTIVE intravenous iron product on the market.

    > The market is more than $400 million a year.

    > Ferumoxytol will be administered in TWO shots that take 12 minutes each vs the current industry standard of 10 TWO HOUR ordeals.

    > Will Gov & Private insurers pay up for this better product? That is the BIG question here as we evaluate AMAG for investment.

    > Analysts believe the co will earn it's first profit in 2009 as earnings are slated to be positive $1.65 a share vs a loss of $1.67 in 2008.

    So you can see we are a bit ahead of the game here and the stock in my view is a GREAT buy under $60.

    > What's really great for us stonedinvestors (maybe not so great for the patients) is that the market for intravenous iron therapy in chronic kidney disease is expected to grow and grow during this period of waiting for AMAG to
    $1 BILLION by 2010!

    > How long do you think Pfizer and others will let this stand alone company stand alone after the new results come in?.....

    > Of course there's yet another kicker to this tale and that's the planned EXPANSION of Ferumoxytol's use to cancer patients with anemia caused by chemotherapy AND to women with gynecological problems, including the dreaded heavy menstrual bleeding....

    Folks if you invest in biotech YOU KNOW the size of these markets. It's surprising we all haven't heard more about this company don't you think? I am an avid watcher of the market and what everyone recommends and I can tell you I have NEVER ONCE heard this name brought up!

    Let's take a stand and for once buy a stock that isn't pushed on us or breaking out with momentum, let's buy a stock that has real appeal to big pharma and lets get in before the talking heads start noticing.

    Price Target. $90. ~ stoney
     
  2. I know thw company well. i had a friend by the 60 call options. i think it goes to 100.