Anti-cancer drug company Allos Therapeutics (NASDAQ:ALTH) Friday abandoned a $686 million planned merger with AMAG Pharmaceuticals (NASDAQ:AMAG) after AMAG failed to get shareholder support for the deal.
Allos, which makes the cancer Folotyn cancer treatment, will receive $2 million to cover expenses related to the proposed deal, AMAG said in a statement.
Allos president and CEO, Paul L. Berns, said: "With the termination of the merger agreement, we will remain focused on growing US sales of Folotyn for relapsed or refractory Peripheral T-cell lymphoma, as well as pursuing future label expansion opportunities in T-cell lymphoma and regulatory approval in the EU, which may occur in early 2012."
"We ended the third quarter with no debt and $100.4 million in cash and investments, which based on our historical sales levels for the first nine months of 2011, we believe will be sufficient to fund our operations through early 2014.
The proposed deal was unveiled in July. AMAG had wanted to buy Allos to gain Folotyn.
AMAG is itself a takeover target as it received a hostile $378 million bid from hedge fund MSMB Capital in August.