Allos looks to complete merger with AMAG, as third party bows out

Allos Therapeutics (Nasdaq: ALTH) says that it continues to work with fellow USA-based AMAG Pharmaceuticals (Nasdaq: AMAG) toward completing their previously-announced $686 million stock merger (The Pharma Letter July 21), pending stockholder approval and satisfaction of the other conditions to closing described in Allos’ definitive proxy statement filed with the Security and Exchange Commission on September 15.

On October 7, Allos explained, the publicly traded pharmaceutical company that had previously submitted a proposal to acquire Allos for $2.20 per share in cash and stock delivered a letter to Allos withdrawing its revised proposal to acquire the company. As a result, Allos is no longer providing information to, or engaging in discussions or negotiations with, that company with respect to the revised acquisition proposal or any other acquisition proposal.

Although Allos did not name the third-party bidder, TheStreet.com has named it as Spectrum Pharmaceuticals. Allos stock dropped 18% to $1.43 on the news, the lowest since the stock began trading in March 2000, reports Bloomberg.