Amag Pharmaceuticals has signed an agreement to acquire a privately held maternal health pharmaceutical company, Lumara Health, for $675m.
The deal also includes an additional contingent consideration of up to $350m based on achievement of certain sales milestones for Lumara’s product Makena (hydroxyprogesterone caproate injection).
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Amag president and CEO William Heiden said: "This is a truly transformative transaction that will propel Amag into a profitable, high-growth multi-product specialty pharmaceutical company positioned for what we expect to be continued revenue and bottom-line growth, further business diversification and shareholder value creation.
"We believe the Lumara Health transaction will facilitate future product acquisitions in an attractive new therapeutic area and is an excellent strategic fit with our Feraheme market expansion plans."
Makena received seven-year orphan drug exclusivity from the US Food and Drug Administration (FDA) in February 2011.
The drug is the only product indicated to reduce the risk of preterm birth in women who are pregnant with one baby and who have delivered one preterm baby spontaneously in the past.
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By GlobalDataLumara Health will continue to operate as a separate business unit within Amag, after completion of the transaction. It will directly report to Amag president and chief executive officer William Heiden.
The transaction is expected to be completed in the fourth quarter of this year.
Lumara Health also announced that it has entered into a separate agreement to sell certain other assets to a third-party.
