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Amag agrees to buy Lumara’s maternal health business for $675m

Photo taken from Lumara’s website

Waltham’s Amag Pharmaceuticals Inc. said Monday that it has agreed to pay $675 million to buy the maternal health business of Lumara Health Inc. to gain entry into the women’s health market.

Missouri-based Lumara makes a drug called Makena that helps to prevent some pregnant women from giving premature birth to their babies.

By mid afternoon Monday, shares of Amag were up nearly 21 percent, or $4.82, to trade at $28.

Under the sales agreement, Amag plans to pay Lumara $600 million in cash and $75 million in stock. Lumara is also eligible to receive additional milestone payments of up to $350 million if certain conditions are met.

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Lumara Health announced that the company signed a separate agreement to divest certain other assets to a third party.

One Amag product is Feraheme, which treats iron deficiency anemia in adults.

In a press release, Amag said that the acquisition of Lumara Health provides it with “a strategic commercial entry into the women’s health segment.”

The release noted that net sales of Makena for the 12-month period ending Aug. 31 were about $130 million.

The transaction has been unanimously approved by both companies’ boards of directors, Amag said, and the sale is expected to be completed in the fourth quarter.

Leerink Partners LLC and J.P. Morgan served as financial advisors to Amag on the transaction. Amag’s legal advisors were Latham & Watkins LLP and Goodwin Procter LLP.


Chris Reidy can be reached at reidy@globe.com.