Lumara has just emerged from bankruptcy and brings a drug for suppressing pre-term birth, plus other women’s health products

Women’s health specialist Lumara is to be split in two and sold to AMAG and consumer healthcare firm Perrigo. AMAG has agreed to buy Lumara Health for an up-front payment of $600 million (£370 million) in cash and $75 million in shares, plus up to $350 million if it meets sales milestones. Perrigo will get the company’s over-the-counter women’s health business for $82 million.

Lumara was previously known as KV Pharmaceuticals, and has just re-emerged from Chapter 11 bankruptcy. AMAG’s driver for the deal is an FDA approved preparation of the hormone treatment hydroxyprogesterone caproate, called Makena, which is used to reduce the risk of pre-term birth in pregnant women who have had premature babies before.

AMAG intends to use the acquisition to boost revenues and provide a platform for further expansion deals.