AMAG Pharma Hit With $50 Million Earnout Suit Over Lumara Merger

AMAG Pharmaceuticals Inc. was hit with a lawsuit Aug. 29 claiming it refuses to pay former Lumara Health Inc. stockholders $50 million it owes them stemming from the merger between the two drugmakers.

AMAG bought Lumara for $675 million in 2014. At the time, Lumara was developing Makena, the only approved drug for reducing the risk of preterm birth for women who previously delivered early. The deal called for an additional $350 million in milestone payments if Makena reached certain sales thresholds, according to the complaint.

Those milestones were an essential part of the merger, without which Lumara’s shareholders wouldn’t ...