AMAG Pharmaceuticals Completes Acquisition of Cord Blood Registry
- Expands company’s growing maternal health business
- Transaction expected to be immediately accretive
- Company anticipates seamless integration and is well positioned for future acquisitions
AMAG Pharmaceuticals, Inc. (AMAG) (Nasdaq:AMAG) announced today that it has completed the acquisition of Cord Blood Registry®(CBR®), the world’s largest umbilical cord blood stem cell collection and storage company serving pregnant women and their families, for $700 million in cash (subject to certain adjustments). The transaction was announced on June 29, 2015, and is expected to be immediately accretive to AMAG’s adjusted EBITDA and earnings.
CBR’s state-of-the-art storage facility currently houses more than 600,000 preserved umbilical cord blood and tissue stem cell units, which CBR believes represents more than half of all privately stored cord units in the United States. To date, CBR has released more stem cell units to families for established and investigational treatment than any other cord blood company worldwide.1
In 2014, CBR generated non-GAAP revenue of $126 million and adjusted EBITDA of $45 million.2 AMAG expects approximately $15 million in annual expense synergies associated with the CBR transaction.
“The completion of AMAG’s acquisition of CBR marks another step forward in our strategy to expand and diversify our business through the acquisition of products and companies that leverage our therapeutic expertise and core competencies,” said William Heiden, chief executive officer of AMAG. “CBR is a strong strategic fit for AMAG’s growing maternal health business and offers a unique opportunity to reach a broader population of expectant mothers who may benefit from our product offerings in the maternal health space, including Makena.”
Mr. Heiden continued, “Increasingly, regenerative medicine research is focused on harnessing the potential of umbilical cord blood stem cells for possible use in treating diseases and conditions that have no known cure today. I am committed to continuing CBR’s important efforts to collaborate with academic researchers to help expand the potential uses of newborn stem cell therapies that may be available to patients and their families.”
CBR executive Geoffrey Crouse will serve as president of CBR and executive vice president at AMAG, reporting directly to Mr. Heiden. Several members of the CBR senior leadership team will also remain with the organization. In addition, an expanded and integrated maternal health field effort will enable more than 100 sales representatives to promote Makena and CBR to obstetricians throughout the country.
“We are proud that CBR is the top choice for families who choose to store umbilical cord blood and is the most recognized newborn stem cell banking brand with customers,” said Mr. Crouse. “Joining with AMAG is an important step as we expand the reach of CBR’s services to families, invest in the science to drive new applications and deepen our relationships with the maternal and child health community.”