Around the Region

AMAG, Colo. firm agree to merger

By Chris Reidy

July 21, 2011

Text size – +

AMAG Pharmaceuticals Inc., a Lexington biopharmaceutical company focused on the development and commercialization of a compound to treat iron deficiency anemia, said it has agreed to merge with Allos Therapeutics Inc., a Colorado company that develops anticancer therapeutics.

The merger will strengthen the companies’ commercial portfolio and achieve projected annual cost savings synergies of between $55 million and $60 million, the companies said in a press release. The agreement calls for an all-stock merger with a total equity value of about $686 million.

AMAG stockholders will own approximately 61 percent of the combined company.

Brian J.G. Pereira, AMAG’s president and chief executive, will carry those titles to the combined company, which will have its headquarters in Lexington and is expected to be renamed to reflect its strategic focus, the release said.