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Covis Group to acquire AMAG Pharmaceuticals in $647m deal

pharmafile | October 5, 2020 | News story | Sales and Marketing AMAG Pharmaceuticals, Covis group, acquisition, pharma 

Luxembourg-based Covis Group is set to acquire Massachusetts-based AMAG Pharmaceuticals in a new deal worth approximately $647 million on an enterprise basis, including debt, it has emerged.

The value of the deal translates to $13.75 per share, a premium of around 46% of AMAG’s common stock closing price as of 30 September.

To Covis, the deal means access to AMAG’s two commercial therapies. The first, Makena (hydroxyprogesterone caproate injection), is for the reduction in risk of preterm birth in singleton pregnancies in women with a history of singleton spontaneous preterm birth, which generated $22.3 million in revenue for the company as of its second-quarter financial report on 6 August.

The second, Feraheme (ferumoxytol injection), is to treat iron deficiency anaemia (IDA) in adult patients with chronic kidney disease or for whom oral iron is not suitable or ineffective. The therapy generated revenues of $29.6 million as of Q2 this year.

On top of these revenues, AMAG also reported a $7 million operating loss and an adjusted EBITDA loss of $1.7 million.

Covis CEO Michael Porter said of the new partnership: “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.”

The deal was signed off unanimously by AMAG’s board.

The deal materialises following a recent strategic review at AMAG. The company’s CEO Scott Myers explained that this review, “resulted in the company pursuing and accomplishing the divestiture of its women’s health assets, and other efforts to streamline and strengthen the core business to position AMAG for the future. 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.”

Matt Fellows

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