Apollo’s Covis Nears Deal to Buy Amag Pharmaceutical
(Bloomberg) -- Covis Pharma agreed to buy Amag Pharmaceuticals Inc. for about $498 million, gaining a specialty pharmaceutical company with a treatment for iron deficiency anemia that's been under pressure to improve its performance from an activist investor.
Covis, a business backed by private-equity firm Apollo Global Management Inc., will pay $13.75 per Amag share in cash, 46% more than Amag's closing price on Sept. 30, according to a statement. The transaction, unanimously approved by Amag's board, gives the company an enterprise value of $647 million, including debt.
The shares jumped 44% to $13.55 Thursday after the deal was announced.
Amag, based in Waltham, Massachusetts, has been under pressure to improve its performance from investor Caligan Partners. The parties reached a settlement last October.
Since that agreement was struck, Amag has trimmed more than $100 million in expenses, sold a women's health businesses, and terminated a licensing agreement for the women's libido drug Vyleesi in recent months.
Covis markets and distributes an array of branded products used to treat chronic and life-threatening medical issues.
©2020 Bloomberg L.P.
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