Covis Group has agreed to acquire biopharmaceutical company AMAG Pharmaceuticals for a total consideration of approximately $647m, or $13.75 per share, including debt obligations.

AMAG develops pharmaceutical products to treat patients with unmet medical needs. The company uses its development and commercial capabilities to invest in and expand its products across various therapeutic areas.

Meanwhile, Covis is a speciality pharmaceutical company offering therapeutics for life-threatening conditions and chronic illnesses.

The acquisition of AMAG could help Covis boost its market presence globally.

Covis Group CEO Michael Porter said: “AMAG’s category leading treatments are strong strategic complements to our existing therapeutic portfolio.

“Through this combination, we believe we will be able to unlock value for all of our stakeholders, employees and patients through the effective and efficient management of these products, coupled with our two companies’ longstanding commitment to expanding patient access to therapy and putting patient interests first.”

Earlier this year, AMAG initiated a strategic review of its product portfolio and strategy with a focus on near and long-term profitability.

Based on the review, the company divested its women’s health assets, as well as carried out additional efforts to boost its core business and position the company for the future.

Commenting on the company’s strategy, AMAG Pharmaceuticals CEO Scott Myers said: “Following this initial transformation, our board of directors and management team, together with independent legal and financial advisors, thoroughly evaluated the transaction with Covis as well as other strategic options and concluded that it represents the most compelling opportunity for shareholders, providing them certain and immediate cash value.”

Subject to customary closing conditions, the transaction should complete next month. Covis intends to finance the acquisition with cash, along with committed debt and equity financing.

After closing of the tender offer, an indirect wholly owned subsidiary of Covis will merge with AMAG.

Separately, Johnson & Johnson completed the acquisition of Momenta Pharmaceuticals for approximately $6.5bn, the agreement signed in August.