September 29, 2014
By Mark Terry, BioSpace.com Breaking News Staff
AMAG Pharmaceuticals, Inc. announced today that is acquiring women’s health company Lumara Health Inc. (Chesterfield, MO) for $675 million.
The deal is for $600 million in cash and $75 in stock with a potential additional $350 million based on sales milestones. Once the deal is closed, Lumara’s commercial operations will operate as a separate business unit within AMAG.
Waltham, Mass.-based AMAG markets Feraheme (ferumoxytol) Injection and MuGard Mucoadhesive Oral Wound Rinse in the U.S. Lumara focuses on women’s health and markets Makena (hydroxyprogesterone caproate injection).
In February 2011 Lumara was granted 7-year orphan drug exclusivity by the FDA. Makena is used to decrease the risk of premature birth in women who have already had one premature baby. Makena is a big seller, with sales in the last 12 months ending on August 31 of more than $130 million, which is reportedly a 72 percent increase over the same period in the previous year.
“Makena is a unique product with clear clinical benefits that serves an important medical need for at-risk pregnant mothers and their unborn children,” said William Heiden, AMAG president and chief executive officer, in a statement. “The consequences of preterm birth are a significant public health issue, and we believe that Makena will be a tremendous addition to our portfolio and will be complementary to AMAG’s in-office injectables commercial expertise.”
In a related deal, Lumara sold some of its women’s healthcare assets to supplements maker Perrigo. The products include a vaginal cream and a skin spray. The separate deal was for $82 million.
“I’m excited to announce the addition of these women’s healthcare products to Perrigo’s Specialty Rx portfolio,” said Joseph Papa, Perrigo chairman, president and chief executive officer, today. “Perrigo is uniquely positioned to realize potential manufacturing synergies given the fact that we currently manufacture three of the products included in this portfolio for Lumara.”
The AMAG-Lumara deal has been unanimously approved by the boards of directors of both companies and is expected to be completed in Q4 2014. The companies project a combined 2015 products sales of $350 million.
AMAG’s lead product, Feraheme, is used to treat iron deficiency anemia in individuals with chronic kidney disease. Because women represent the largest population of patients with iron deficiency anemia, if AMAG can achieve FDA approval to expand use of the drug beyond the chronic kidney disease indication, the Lumara commercial market offers a strategic commercial entry point.
“I strongly believe AMAG is the right partner to support the continued growth of Makena and our maternal health business,” Lumara Health CEO Greg Divis said in a press release. “This transaction is a great reflection of the outstanding work our team has done to build the maternal health franchise to what it is today, and I am pleased that this same team will continue to grow the brand within AMAG.”
