The company will buy the maternal health business from Lumara Health for $675 million in cash and stock, according to the Wall Street Journal. The goal of the acquisition is to diversify AMAG's drug portfolio.
The flagship drug in the sale is Makena, which helps reduce the risk of preterm birth in pregnant women. Lumara sold more than $130 million worth of Makena in the past year, according to AMAG.
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TheStreet Ratings team rates AMAG PHARMACEUTICALS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMAG PHARMACEUTICALS INC (AMAG) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year."
You can view the full analysis from the report here: AMAG Ratings Report