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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