Covis Group to acquire US biopharma company AMAG Pharmaceuticals
Covis Group, a Luxembourg specialty pharma company, has agreed to acquire US biopharma company AMAG Pharmaceuticals for about $647 million, which includes the latter’s debt.
As per the terms of the deal, Covis Group will acquire AMAG Pharmaceuticals for $13.75 per share in cash, or nearly $498 million.
Covis Group is making the acquisition to become a major provider of therapeutic solutions for life-threatening conditions and chronic illnesses.
Michael Porter – Covis Group CEO said: “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.
“At Covis, we never lose sight that our patients are our paramount concern. We look forward to engaging with the talented team at AMAG as we work together to plan the integration of our two organizations.”
AMAG Pharmaceuticals has two approved products – Feraheme (ferumoxytol injection) and Makena (hydroxyprogesterone caproate injection). Feraheme has approval for the treatment of iron deficiency anemia (IDA) in adults, while Makena is a progestin, which has approval for reducing the risk of preterm birth in women with a singleton pregnancy who have a history of singleton.
It also has two other products in its portfolio – Ciraparantag, which is in phase 2 clinical development, and AMAG-423 Digoxin Immune Fab (ovine), which is in phase development.
According to AMAG Pharmaceuticals, Ciraparantag is a small, water-soluble molecule, which is being studied for the reversal of anticoagulation induced by direct oral anticoagulants (DOACs) or low molecular weight heparin (LMWH).
On the other hand, AMAG-423 Digoxin Immune Fab (ovine) is a polyclonal antibody, which is being developed for the treatment of severe preeclampsia in pregnant women. AMAG Pharmaceuticals acquired its global rights to develop and commercialize DIF from Velo Bio.
DIF has an orphan drug as well as fast-track designations from the US Food Drug and Administration in severe preeclampsia.
Scott Myers – AMAG Pharmaceuticals CEO said: “In the beginning of 2020, AMAG announced that the company had undertaken a strategic review of our product portfolio and strategy, the guiding principles of which included driving near- and long-term profitability and enhancing shareholder value. This strategic 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.
“We believe Covis is the right partner for AMAG, especially in light of Covis’ shared commitment to ensuring that our therapies will reach patients in need.”
The deal is likely to be closed in November subject to Hart-Scott-Rodino (HSR) approval and the conditions to a tender offer being satisfied.