AMAG, Allos to merge

Hematology company AMAG Therapeutics Inc. (NASDAQ:AMAG) and cancer company Allos Therapeutics Inc. (NASDAQ:ALTH) will merge in a stock deal that values Allos at about $2.44 per share, or $258 million. The companies said the merger will allow a single commercial team to sell Allos' Folotyn pralatrexate and AMAG's Feraheme ferumoxytol, with the merger resulting in annual savings of about $55-$60 million. The news sent shares of AMAG falling $2.76 (14%) to $16.31 on Wednesday. Allos was off $0.12 to $1.94.

Allos shareholders, who will receive 0.13 shares of AMAG stock for each Allos share, will own about 39% of the combined company. AMAG shareholders will own the remaining 61%. The deal value is based on Allos' 105.6 million shares outstanding at May 6 and AMAG's Tuesday close of $19.07 before the deal was announced. ...