Bloomberg News

Allos Says It Settled Lawsuits Contesting Merger With AMAG

October 14, 2011

Oct. 14 (Bloomberg) -- Allos Therapeutics Inc., maker of the blood-cancer drug Folotyn, said it reached a settlement of lawsuits opposing its planned $195 million acquisition by AMAG Pharmaceuticals Inc.

The parties entered into a memorandum of understanding, under which Allos will submit a regulatory filing with amended and increased information, Westminster, Colorado-based Allos said yesterday in a statement.

AMAG, based in Lexington, Massachusetts, is working with Allos to complete an all-stock acquisition valued at $2.44 a share when the deal was announced in July. It’s now worth about $1.84 after a decline in AMAG’s share price.

The suits were filed in Delaware Chancery Court. The deal also has faced opposition from hedge fund MSMB Capital Management, which owns 5.9 percent of AMAG, and said the company may be overpaying for Allos.

Allos was unchanged yesterday at $1.45 in Nasdaq Stock Market trading. The shares have fallen 30 percent since July 19, the day before the merger was announced. AMAG, which makes the anemia drug Feraheme, rose 3.2 percent to $14.39. The shares have lost 25 percent since July 19.

--Editors: Bruce Rule, Chris Staiti

To contact the reporter on this story: Meg Tirrell in New York at mtirrell@bloomberg.net

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


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