ARTICLE | Company News

AMAG gains on M&A deal to add Makena

September 30, 2014 2:30 AM UTC

AMAG Pharmaceuticals Inc. (NASDAQ:AMAG) jumped $6.54 (28%) to $29.72 Monday on news it agreed to acquire the maternal health business of Lumara Health Inc. (Chesterfield, Mo.) -- once known as KV Pharmaceutical Co. -- for $675 million in cash and stock, plus $350 million in potential sales milestones. AMAG will gain ownership of Lumara's Makena hydroxyprogesterone caproate injection to prevent preterm birth.

AMAG will pay $600 million in cash and issue 3.2 million new shares, worth about $74.4 million based on Friday's closing price of $23.18. It has arranged for $340 million in debt from Jefferies Finance LLC to finance the transaction. ...