UPDATE 2-AMAG enters into anemia drug licensing deal with Takeda

* Says eligible for $220 mln in milestone payments

* Takeda has exclusive licence to drug in five regions

* Shares up 8 percent
(Adds analyst comment, updates share movement)

By Shailesh Kuber

BANGALORE, April 1 (BestGrowthStock) – AMAG Pharmaceuticals Inc
(AMAG.O: ) said it has entered into a licensing deal with Japan’s
Takeda Pharmaceutical Co (4502.T: ) to market the U.S.
biopharmaceutical company’s injectable anemia drug in five
regions outside the United States.

Shares of AMAG rose as much as 8 percent.

Under the agreement, AMAG received an upfront payment of
$60 million, while Takeda holds the exclusive license to
Feraheme for all therapeutic applications in Europe, Canada,
Turkey, the Commonwealth of Independent States and Asia Pacific
countries, excluding Japan, China and Taiwan.

AMAG, which is eligible to receive up to $220 million in
development and commercial milestones, will earn tiered,
double-digit royalties based on net sales of Feraheme in the
licensed territories.

Summer Street Research analyst Carol Werther said Takeda
could be a really good partner, but she finds it a “little
unusual” that AMAG is going to conduct and fund all the global
clinical development of Feraheme.

“Usually when you get a rest-of-world partner, they often
conduct the studies overseas. It may be because AMAG already
had plans to do a global study in some areas and so they wanted
to hang on to that,” Werther said by phone.

“But all in all, it’s positive that AMAG got a partner,”
she added.

Feraheme is already approved for the treatment of iron
deficiency anemia in adult patients with chronic kidney
disease.

Shares of the company were up 4 percent at $36.18 in
morning trade on Nasdaq. They touched a high of $37.58 earlier
in the session.

Stock Market

(Additional reporting by Anuradha Ramanathan; Editing by
Maju Samuel, Jarshad Kakkrakandy)

UPDATE 2-AMAG enters into anemia drug licensing deal with Takeda