AMAG Pharma To Buy Lumara Health - Quick Facts

(RTTNews) - AMAG Pharmaceuticals Inc. (AMAG) announced that it has entered into a definitive agreement to acquire Lumara Health Inc., a privately-held pharmaceutical company specializing in women's health, for $675 million ($600 million in cash and $75 million in stock) and additional contingent consideration of up to $350 million based on achievement of certain sales milestones.

Lumara Health is a specialty pharmaceutical company committed to advancing the health of women throughout the stages of their lives, with a particular focus on maternal health. Net sales of Makena over the 12 months ending August 31, 2014 were greater than $130 million, a 72% increase compared to the prior year period. Lumara Health announced that it has signed a separate agreement to divest certain other assets to a third party.

AMAG Pharma expects the deal to result in projected combined 2015 product sales of $350 million and expects to be immediately accretive to adjusted earnings per share, with cost synergies of at least $20 million per year. AMAG said the company intends to provide additional financial guidance for 2015 as promptly as practicable following completion of the transaction.

Upon closing, Lumara Health's commercial operations will function as a separate business unit within AMAG, reporting directly to William Heiden, CEO of AMAG. The company intends to name current Lumara Health executives who will be joining AMAG's leadership team at or prior to closing.