- Amag Pharma is buying Lumara Health for $675 million up front and an additional potential $350 million in milestone payments. As a result, Amag will now own Makena (hydroxyprogesterone caproate), an injectable drug used to reduce the risk of preterm birth in high-risk women. It will also own other women’s health drugs -- though a portion will be excluded, as Lumara already sold off part of its portfolio to Perrigo for $82 million in cash.
- Makena sales over the 12-month period ending on August 31 were $130 million, representing a 72% increase year-over-year.
- Amag’s portfolio includes Feraheme (ferumoxytol), which is used to treat chronic kidney disease (CKD).
Though Makena brings value to Amag’s portfolio independently, Amag also plans to deploy Lumara’s commercial sales force to sell Feraheme. The company was disappointed earlier this year when the FDA rejected its ANDA for expansion of Feraheme’s CKD label to include adult iron deficiency anemia. Lumara was established in May following the bankruptcy of K-V Pharmaceuticals.
Makena was approved in February 2011 amidst a pricing controversy, as K-V Pharma planned to charge $1,500 per dose despite the fact that generic versions of the medication had been available from compounding pharmacies for $10 to $20 per dose. In the end, the company settled on a price of $690 per injection. K-V sent letters to generic compounders to desist from creating the generics, but was unable to take further action as it filed for chapter 11.