Mon Sep 29, 2014 9:08am EDT
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<span id="midArticle_0"/>Sept 29 (Reuters) - Amag Pharmaceuticals Inc said it would buy privately held women's healthcare company Lumara Health Inc for $675 million in cash and stock, gaining access to the only approved product designed to reduce the risk of preterm birth.
<span id="midArticle_1"/>Amag's shares were up 21 percent at $28.09 before the bell.
<span id="midArticle_2"/>The company said the deal, which has a cash component of $600 million, was expected to add earnings immediately and result in combined product sales of $350 million in 2015.
<span id="midArticle_3"/>Amag, based in Waltham, Massachusetts, had sales of $39.6 million in the first half of the year ended June 30.
<span id="midArticle_4"/>Lumara's drug, Makena, generated sales of more than $130 million in the 12 months ending Aug. 31, Amag said.
<span id="midArticle_5"/>Lumara is eligible to receive an additional $350 million based on hitting a sales milestone.
<span id="midArticle_6"/>Lumara, formerly known as K-V Pharmaceuticals Inc, said separately that it would sell a line of women's health products to Perrigo Company Plc.
<span id="midArticle_7"/>Amag will fund its deal through term loan financing from Jefferies Finance LLC, cash on hand and $75 million raised through an issue of common stock. (Reporting by Vidya L Nathan; Editing by Ted Kerr)
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<span id="articleText"/>(Adds background, details)
<span id="midArticle_0"/>Sept 29 (Reuters) - Amag Pharmaceuticals Inc said it would buy privately held women's healthcare company Lumara Health Inc for $675 million in cash and stock, gaining access to the only approved product designed to reduce the risk of preterm birth.
<span id="midArticle_1"/>Amag's shares were up 21 percent at $28.09 before the bell.
<span id="midArticle_2"/>The company said the deal, which has a cash component of $600 million, was expected to add earnings immediately and result in combined product sales of $350 million in 2015.
<span id="midArticle_3"/>Amag, based in Waltham, Massachusetts, had sales of $39.6 million in the first half of the year ended June 30.
<span id="midArticle_4"/>Lumara's drug, Makena, generated sales of more than $130 million in the 12 months ending Aug. 31, Amag said.
<span id="midArticle_5"/>Lumara is eligible to receive an additional $350 million based on hitting a sales milestone.
<span id="midArticle_6"/>Lumara, formerly known as K-V Pharmaceuticals Inc, said separately that it would sell a line of women's health products to Perrigo Company Plc.
<span id="midArticle_7"/>Amag will fund its deal through term loan financing from Jefferies Finance LLC, cash on hand and $75 million raised through an issue of common stock. (Reporting by Vidya L Nathan; Editing by Ted Kerr)
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