Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

AMAG Board Says Shareholders Should Vote for Allos Purchase

Don't Miss Out —
Follow us on:

Oct. 12 (Bloomberg) -- AMAG Pharmaceuticals Inc., the maker of the anemia drug Feraheme, urged investors today to support its $189 million bid for cancer drugmaker Allos Therapeutics Inc. over the objections of MSMB Capital Management.

MSMB Capital, a New York-based hedge fund that owns 5.9 percent of AMAG, said in a statement yesterday that it opposes AMAG’s attempt to purchase Allos. MSMB in August made an unsolicited $378 million offer for AMAG, based in Lexington, Massachusetts.

AMAG is working with Allos, based in Westminster, Colorado, to complete the all-stock acquisition valued at $2.44 a share when the deal was announced in July. It’s now worth about $1.79 after declines in AMAG’s share price. AMAG investors are scheduled to vote on the Allos acquisition on Oct. 21.

“Do not rely on MSMB Capital’s illusory proposal,” AMAG said in a filing today to investors. “Your Board believes that the combination with Allos will create a financially strong company.”

Allos shares were unchanged at $1.45 at 4 p.m. New York time. AMAG gained 5.3 percent to $13.94.

“Allos shareholders are getting an excellent price -- and AMAG shareholders may be overpaying,” MSMB said in its statement. Martin Shkreli, MSMB’s chief investment officer, said in announcing his takeover bid on Aug. 3 that AMAG had been mismanaged.

AMAG wants to add Allos to acquire its lymphoma drug Folotyn, which AMAG said has a common customer base. AMAG is seeking new revenue after Feraheme failed to meet second-quarter estimates by five analysts surveyed by Bloomberg. Sales of Folotyn may slow though, Citibank analyst Yaron Werber in New York said in an Oct. 5 note to clients that disparaged the deal.

To contact the reporter on this story: Drew Armstrong in Washington at darmstrong17@bloomberg.net;

To contact the editor responsible for this story: Reg Gale at rgale5@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.