'Deck chairs on the Titanic'?: AMAG's CEO departure, drug dumps may not right the ship, analyst says
An FDA advisory committee recommended in October that AMAG's premature birth med Makena be pulled off the market based on slim confirmatory trial evidence. (Pixabay)
After forfeiting two board seats and undertaking a strategic review, AMAG Pharmaceuticals is saying goodbye to its CEO and two of its drugs. But with another med likely being pulled from the market, AMAG's sudden decision to cut ties with its chief executive could be akin to shifting "deck chairs on the Titanic," one analyst said.
AMAG CEO William Heiden has agreed to step down following a strategic review spurred by activist investor Caligan Partners that also recommended the sale or spinoff of two women's health drugs, female libido treatment Vyleesi and painful sex med Intrarosa, the company said Thursday.
Heiden will stay on with AMAG through the successor search, which the company expects to wrap up by mid-2020, it said.
“It has been an honor and a privilege to lead the team at AMAG," Heiden said in a release. "As we implement the strategic shift announced today, my fellow directors and I believe that this is the right time for the board to identify a new CEO for the next leg of AMAG’s journey.”