AMAG tops its year-long, activist driven transformation with a $647M selloff to private equity
AMAG Pharmaceuticals, beset by falling revenue and the threat of the FDA pulling a longtime drug, has spent the last year trying to streamline, cutting staff and jettisoning assets to other companies. Now they’ve sold the last bit they can: Themselves.
The Waltham-based biotech has agreed to a $498 million bid from Covis Pharma, a business managed by the private equity firm Apollo Global Management. That’s $13.75 per share, a 46% premium on yesterday closing price. The deal, when considering AMAG’s debt, is worth $647 million total. Scott Myers, the CEO brought in to remold the company, said in a statement that it was “the most compelling opportunity” to give shareholders “certain and immediate cash value.”
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