Transformative

Acquisitionof
Lumara Health
MaternalHealthBusiness
September29,2014

AMAGPharmaceuticals,Inc.
1100WinterStreet
Waltham,MA02451
o 617.498.3300
www.amagpharma.com

Copyright2014AMAGPharmaceuticals.AllRightsReserved.

ASPECIALTYPHARMACEUTICALCOMPANY
DEDICATEDTOBRINGINGTOMARKET
THERAPIESTHATIMPROVEPATIENTSLIVES.

ForwardLookingStatements
`

ThispresentationcontainsforwardlookingstatementswithinthemeaningofthePrivateSecuritiesLitigationReformActof1995(PSLRA)andotherfederalsecuritieslaws.Anystatements
containedhereinwhichdonotdescribehistoricalfacts,includingbutnotlimitedto,statementsregarding:(1)ourplansto buildamultiproductspecialtypharmaceuticalcompany;(2)the
transactionwithLumaraHealthandtheadditionofMakenatoourproductportfolio,includingexpectedbenefits,opportunities,synergies,financing,resultsandtheimpactonadjusted
earningspershare(EPS),EBITDAandshareholdervalue,theimpactonourfinancialprofile,aswellasthetimingoftheclosingofthetransactionandtheissuanceofstockconsideration;
(3)expectationsthatthecombinedcompanywillhave$350millioninU.S.productsalesin2015andwillbeimmediatelyaccretivetoadjustedEPS;(4)anticipatedcombinedcompany
adjustedEPS;(5)AMAGsintentionstoprovidefurtherguidance;(6)anticipatedcostsynergiesofatleast$20million;(7)beliefsthatMakenaenjoyssignificantadvantagesoverpossible
competitionfromgenericalternatives;(8)expectationsthatMakenawillretainlongtermgrowthafterexclusivityexpiresinFebruary2018;(9)expectationsforMakenaslifecycle
managementprogram;(10)anticipatedbenefitsfromrulesandregulations,includingtheDrugQualityandSecurityAct,andproductreimbursementtrends;(11)thesizeofthemarketfor
Makena(potentially$1billionplusinrevenue);(12)expectationsfortheLumaraHealthmaternalhealthcommercialplatformand ourentryintoamarketimportantforthefuturegrowth
ofFeraheme (ferumoxytol)injection;(13)ourbeliefthatthisisatransformativetransactionthatpropelsusintoaprofitable,highgrowthmultiproductspecialtypharmaceutical
companypositionedforcontinuedrevenueandbottomlinegrowth,furtherdiversificationandshareholdervaluecreation;(14)expectationsregardingLumaraHealthsimpactonfuture
productacquisitions;(15)beliefsaboutthecommercialplatformandthestrategicfitofLumaraHealth;(16)ourplanstoexpandthemarketforFeraheme;(17)beliefsaboutMakenaand
itsbenefits,includingthatitisauniqueproductthatservesanimportantmedicalneed;(18)theimpactofMakenaonourproductportfolio;(19)beliefsregardingtheopportunityfor
Makenaandthepotentialtoleverageourinofficeinjectablescommercialexpertise;(20)expectationsregardingtheMakenacommercialteam,includingitsabilitytogrowthebrand;(21)
beliefsregardingthecombinedcompanysscale,portfoliodiversification,resourcesandcommercialexpertise,includingtheimpactonAMAGslongtermgrowthopportunitiesand
patientservice;(22)AMAGbeingtherightpartnertosupportthecontinuedgrowthofMakenaanditsmaternalhealthbusiness;(23)plansforLumaraHealthfollowingtheclosing;(24)
expectationsregardingthefinancingforandthetimelinefortheLumaraHealthtransaction;(25)ourtaxattributesandexpectationsregardingtheshareholderrightsplanamendment;
(26)ourplanstoexpandourportfoliothroughtheinlicenseorpurchaseofadditionalpharmaceuticalproductsorcompanies;and(27)ourgoalofbringingtomarkettherapiesthat
provideclearbenefitsandimprovepatientslivesareforwardlookingstatementswhichinvolverisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthose
discussedinsuchforwardlookingstatements.StatementsaboutAMAGsorLumaraHealthspastfinancialresultsdonot,andare notmeantto,predictfutureresults.AMAGcanprovide
noassurancethatsuchresultsandperformancewillcontinue.Fortheavoidanceofdoubt,anystatementshereinthatrelatetotheacquisitionofLumaraHealthareforwardlooking
statementswithinthemeaningofthePSLRAandotherfederalsecuritieslaws.
Suchrisksanduncertaintiesinclude,amongothers:(1)thepossibilitythattheclosingconditionssetforthinthedefinitive acquisitionagreement,includingthoseconditionsrelatedto
antitrustclearance,willnotbemetandthatthepartieswillbeunabletoconsummatetheproposedtransaction,(2)thechancethat,despitehavingacommitmentinplace,wewillbe
unabletosecurefinancing,orfinancingonsatisfactoryterms,inamountssufficienttoconsummatetheacquisition,(3)thepossibilitythatiftheacquisitionisconsummated,wemaynot
realizetheexpectedbenefits,synergiesandopportunitiesanticipatedinconnectionwiththetransaction,includingtheanticipatedcostssynergiesof$20million,annualizedsalesofmore
than$180millionandcontinuedrevenuegrowth,annualizedEBITDAof$100million,the$1billionmarketopportunity,theaccelerateduseofcombined$500millioninnetoperating
lossesandthatthetransactionwillbeimmediatelyaccretivetoadjustedEPS,(4)thechallengesofintegratingtheMakenacommercialteamintoAMAG,(5)theimpactonsalesofMakena
fromcompetitive,commercialpayor,government(includingfederalandstateMedicaidreimbursementpolicies),physician,patient orpublicresponseswithrespecttoproductpricing,
productaccessandsalesandmarketinginitiatives,(6)theimpactofpatientcomplianceonunitssales,(7)theuncertaintyofachievingsalesofFerahemetoOB/GYNspecialistsforthe
treatmentofwomenwhosufferfromirondeficiencyanemia(IDA),evenassumingFDAapprovalforthebroaderindication,(8)wemayfacechallengesinleveragingourinoffice
injectablescommercialexpertise,whichcouldresultinunforeseenexpensesanddisruptbusinessoperations,(9)liabilitiesweassumefromLumaraHealth,includingtheclassaction
litigationInReKVPharmaceuticalCompanySecuritiesLitigation,CaseNo.4:11CV1816AGF,maybehigherthanexpected,(10)thepossibilitythatsalesofMakenawillnotmeet
expectationsasaresultofcurrentandfuturecompetitionfromcompoundedproductsand/orfuturecompetitionfromgenericalternativesuponexpirationofexclusivityinFebruary2018,
(11)theimpactofreimbursementpoliciesforMakenaandtheresultingcoveragedecisionsand/orimpactonpricing,(12)thenumberofpretermbirthriskpregnanciesforwhichMakena
maybeprescribed,itssafetyandsideeffectsprofileandacceptanceofpricing,

Copyright2014AMAGPharmaceuticals.AllRightsReserved.

ForwardLookingStatements(cont.)
(13)inconnectionwiththeLumaraHealthacquisition,wewillincurasubstantialamountofindebtednessandwillhavetocomplywithrestrictiveandaffirmativedebtcovenants,
includingarequirementthatwereduceourleverageovertime,(14)thepossibilitythatwewillneedtoraiseadditionalcapitalfromthesaleofourcommonstock,whichwillcause
significantdilutiontoourstockholders,inordertosatisfyourcontractualobligations,includingourdebtservice,milestone paymentsthatmaybecomepayabletoLumaraHealths
stockholders/orinordertopursuebusinessdevelopmentactivities,(15)uponconsummationoftheLumaraHealthtransaction, we willbehighlyleveragedandhavelimitedcashand
cashequivalentresourceswhichmaylimitourabilitytotakeadvantageofattractivebusinessdevelopmentopportunitiesandexecuteonourstrategicplan,(16)thepossibilitythatour
stockholderswillnotapprovetheamendmenttoourshareholderrightsplanandthatourtaxbenefits,includingthoseacquireduponconsummationoftheLumaraHealthacquisition,
willnotbeavailableinthefuture,(17)thelikelihoodandtimingofpotentialapprovalofFerahemeintheU.S.inthebroader IDAindicationinlightofthecompleteresponseletterwe
receivedfromtheFDAinformingusthatoursupplementalnewdrugapplication(sNDA)forthebroaderindicationcouldnotbeapprovedinitspresentformandstatingthatwehadnot
providedsufficientinformationtopermitlabelingofFerahemeforsafeandeffectiveusefortheproposedbroaderindication,(18)thepossibilitythatfollowingFDAreviewofpost
marketingsafetydata,includingreportsofseriousanaphylaxis,cardiovascularevents,anddeath,and/orinlightofthelabelchangesrequestedbytheEuropeanMedicinesAgencys
(EMA)PharmacovigilanceRiskAssessmentCommittee(PRAC)andconfirmedbytheCommitteeforMedicinalProductsforHumanUse(CHMP),theFDA(orotherregulators)willrequest
additionaltechnicalorscientificinformation,newstudiesorreanalysisofexistingdata,onlabelwarnings,postmarketingrequirements/commitmentsorriskevaluationandmitigation
strategies(REMS)inthecurrentindicationforFerahemeforIDAinadultpatientswithchronickidneydisease(CKD)andtheadditionalcostsandexpensesthatwillormaybeincurredin
connectionwithsuchactivities,(19)whetherourproposedlabelchangeswillbeacceptabletotheFDAorotherregulatoryauthoritiesandwhatimpactsuchchanges,orsuchadditional
changesastheFDA,CHMPorotherregulatorsmayrequire,willhaveonsalesofFeraheme/Rienso(RiensoisthetradenameforferumoxytoloutsideoftheU.S.andCanada),(20)our
andTakedaPharmaceuticalLimitedsabilitytosuccessfullycompeteintheIVironreplacementmarketbothintheU.S.andoutsidetheU.S.,includingtheEU,asaresultoflimitations,
restrictionsorwarningsinFerahemes/Riensoscurrentorfuturelabel,includingthechangesrecommendedbyPRACandconfirmed byCHMPthatRiensobeadministeredtopatientsby
infusionoveratleast15minutes(replacinginjection)andthatitbecontraindicatedforpatientswithanyknownhistoryofdrugallergy,(21)ourabilitytoexecuteonourlongterm
strategicplanortorealizetheexpectedresultsfromourlongtermstrategicplan,(22)TakedasabilitytoobtainregulatoryapprovalforFerahemeinCanada,andRiensointheEU,inthe
broaderIDApatientpopulation,(23)thepossibilitythatsignificantsafetyordruginteractionproblemscouldarisewithrespecttoFeraheme/Riensoandinturnaffectsales,orourability
tomarkettheproductbothintheU.S.andoutsideoftheU.S.,includingtheEU,(24)therelationshipbetweenTakedaandAMAGandtheimpactoncommercializationeffortsfor
Feraheme/RiensointheEUandCanada,(25)thelikelihoodandtimingofmilestonepayments,ifany,inconnectionwithAMAGs licensingarrangementwithTakeda,(26)the
manufactureofFeraheme/RiensoorMuGard(orMakenaiftheacquisitionisconsummated),includinganysignificantinterruptioninthesupplyofrawmaterialsorfinishedproduct,(27)
ourpatentsandproprietaryrightsbothintheU.S.andoutsidetheU.S.(includingthoseacquiredintheacquisition),(28)the riskofanAbbreviatedNewDrugApplication(ANDA)filing
followingtheFDAsdraftbioequivalencerecommendationforferumoxytolpublishedinDecember2012,(29)thepossibilitythat AMAGwilldisseminatefutureDearHealthcareProvider
lettersintheU.S.(or,workingTakeda,inEuropeorothermarkets),(30)uncertaintiesregardingourabilitytocompeteinthe oralmucositismarketintheU.S.andinthewomens
maternalhealthmarketand(31)otherrisksidentifiedinourfilingswiththeU.S.SecuritiesandExchangeCommission(SEC), includingourQuarterlyReportonForm10Qforthequarter
endedJune30,2014andsubsequentfilingswiththeSEC.Anyoftheaboverisksanduncertaintiescouldmateriallyandadverselyaffectourresultsofoperations,ourprofitabilityand
ourcashflows,whichwould,inturn,haveasignificantandadverseimpactonourstockprice.Useofthetermincluding in thetwoparagraphsaboveshallmeanineachcase
including,butnotlimitedto.Wecautionyounottoplaceunduerelianceonanyforwardlookingstatements,whichspeakonly asofthedatetheyaremade.

Wedisclaimanyobligationtopubliclyupdateorreviseanysuchstatementstoreflectanychangeinexpectationsorinevents,conditionsorcircumstancesonwhichanysuchstatements
maybebased,orthatmayaffectthelikelihoodthatactualresultswilldifferfromthosesetforthintheforwardlookingstatements.AMAGPharmaceuticalsandFerahemeareregistered
trademarksofAMAGPharmaceuticals,Inc.MuGardisaregisteredtrademarkofAccessPharmaceuticals,Inc.Riensoisatrademark ofTakedaPharmaceuticalCompanyLimited.Makena
isaregisteredtrademarkofLumaraHealthInc.LumaraHealthisatrademarkofLumaraHealthInc.

Copyright2014AMAGPharmaceuticals.AllRightsReserved.

Copyright2014AMAGPharmaceuticals.AllRightsReserved.

AcquisitionofLumara HealthtransformsAMAGintoaprofitable,
highgrowthmultiproductspecialtypharmaceuticalcompany,well
positionedforcontinuedexpansionoftheproductportfolio

Product#5

MAKENA

LUMARA MATERNALHEALTH

Product#4

FERAHEME

MUGARD

HEMATOLOGY/ONCOLOGY,
HOSPITAL,NEPHROLOGY

HIGHPERFORMING
SPECIALTY
COMMERCIALTEAMS

STRONGFINANCIALPROFILE

EXPERIENCEDMANAGEMENTTEAM
CORPORATEINFRASTRUCTURE

Copyright2014AMAGPharmaceuticals.AllRightsReserved.

TransactionHighlights
AcquisitionofLumara Healthanditsmaternalhealthdivision
Annualizedsalesof>$180millionandEBITDAof$110million*
72%revenuegrowth*

AddshighgrowthMakena product
OnlyFDAapprovedproducttolowertheriskofpretermsingletonbirthincertainatriskwomen
Rapidlyevolvingpositivemarketdynamics
7yearorphandrugexclusivitywithactivelineextension/lifecycleprogram

Strongstrategicrationale&anaturalfitforAMAG
Entryintospecialtywomenshealth,anareaofstrategicinterestforIDAmarketexpansion**
Enablesfutureproductacquisitionsonanewcommercialplatform

Transformsfinancialprofile

Estimatedproformacombined2015productsalesof~$350million
Immediatelyaccretivetoadjustedearningspershare
Acceleratesutilizationofcombined$500millioninnetoperatinglosses(subjecttolimitations)
Annualsynergiesof$20million

*Seeslide7
**IfFDAregulatoryapprovalinbroaderIDApopulationissoughtandreceived
Copyright2014AMAGPharmaceuticals.AllRightsReserved.

TransactionTerms
Performance
BasedFinancial
Structure

Operational
Structure

Sourcesof
Consideration

Timing

$675MMconsideration(~3.75timesannualizedsales)
Upto$350MMofadditionalconsiderationbasedonMakena sales,including
milestonesof$300MM,$400MMand$500MM*

Lumara HealthwilloperateasseparatebusinessunitwithinAMAG
EasyintegrationofMakena commercialteam,including75personsalesforce

$340MMcommittedtermloanBfinancing,attractiveterms
$260MMinexistingAMAGcash
$75MMequity(subjecttolockupagreement)

HartScottRodino (HSR)review
Expecttocompletetransactionin4Q14

*Basedonconsecutive12monthsnetsales
Copyright2014AMAGPharmaceuticals.AllRightsReserved.

LumaraMaternalHealthBusiness

Privatelyheldspecialty
pharmaceuticalcompanyfocused
onmaternalhealth

Makenaisaprogestinusedtolower
theriskofpretermbirthinwomen
whoarepregnantwithonebabyand
whohavespontaneouslydeliveredone
pretermbabyinthepast

Flagshipproduct,Makena
Commercialteamwithdeep
experiencewithOB/GYNsub
specialty

Weeklyintramuscular
injectionsfrom16to37
weeksofpregnancy,
1822totalinjections

Lumara Healthsnewcommercial
leadershipispursuingpatientcentric
businessstrategy

Copyright2014AMAGPharmaceuticals.AllRightsReserved.

Makena:AValuableAsset
Significanttoplinerevenueand
growth
Strongsequentialquartergrowthlast
2+years
>$180MMannualizedMakenasales
basedonmostrecenttrailing3month
actuals*
72%revenuegrowthlasttwelvemonths
(endedAugust2014)vs.previous12
months

SignificantMakena UnitandDollarGrowth

18,000

$40MM

16,000

$35MM

14,000

$30MM

12,000

$25MM

10,000

$20MM

8,000

$15MM

6,000

$10MM

4,000

$5MM

2,000

$0MM

thatdrivesrobustbottomlinegrowth
Robustquarterlyearningsgrowth
Trailing3monthannualizedEBITDA
>$110MM*

20,000

$45MM

DemonstratedEBITDAGrowth
$30MM
$25MM

115%
Increase

$20MM
$15MM
$10MM
$5MM

*PeriodcoveringJuneAugust2014
Copyright2014AMAGPharmaceuticals.AllRightsReserved.

$0MM

JuneAugust2013

JuneAugust2014
8

Lumara Health:NaturalFitforAMAG
Womenshealthsegment
includesoneofthelargest
poolsofirondeficiency
anemia(IDA)patients,not
yettreatedwithIViron

IDA Prevalence by Condition

(Patientsinmillions)

Establishesimmediate
presencewithinwomens
healthsubspecialtyfor
futureFeraheme growth*
AMAGworkingwithFDAto

finalizepathforwardfor
Feraheme labelexpansion,
expected4Q14

*IfFDAregulatoryapprovalinbroaderIDApopulationissoughtandreceived
Copyright2014AMAGPharmaceuticals.AllRightsReserved.

Makena:StandardofCareTherapy
Lengthofpregnancyisoneofthemostimportantfactorsinanewbornsoverallhealthand
survival(1)
PrematurebirthintheU.S.costs$26.2billionannually(2)
Averagefirstyearmedicalcostsareapproximately10timesgreaterforpreterminfantsthanfor
fullterminfants(3)

StrongMakena EfficacyData(4,5)
32%Improvement
RateofBirth

31%Improvement
39%Improvement

Before 37 weeks
Before 35 weeks
Before 32 weeks
ControlN=153(%)
MakenaN=310(%)
(1)Whyatleast39weeksisbestforyourbaby.(2012,September).MarchofDimes.(2)Behrman,R.E.,&Butler,A.(2007).(3)ThomsonReuters.(2008,October28).TheCost
ofPrematurityandComplicatedDeliveriestoU.S.Employers.ReportpreparedfortheMarchofDimes.(4)Makena USPrescribingInformation(5)TheeffectivenessofMakena
isbasedonimprovementintheproportionofwomenwhodelivered<37weeksofgestation.
Copyright2014AMAGPharmaceuticals.AllRightsReserved.

10

Makena:$1BMarketOpportunity(1)
Market Share Based on Patients(2)

Orphanpatientpopulation:
~140k160kestimatedpatients
peryear
Potentialtoincreasemarket
share
+30%revenueopportunitywith
enhancedpatientcompliance
(injectionsperpatient)

Off guidance(3)
~42K(30%)

Compounded
hydroxyprogesterone
caproate
~65K(46%)

Makena
~33K(24%)

Favorablemarketdynamicsand
reimbursementtrends

(1)Basedon140,000patients,>16injections/patientandnetrevenueof~$450/injection
(2)EstimatesbasedoncurrentMakena distributedunitsandquantitativephysicianmarketresearchdataoncompoundedhydroxyprogesterone caproate
(3)OffguidancerepresentspatientstreatedoutsideSocietyforMaternalFetalMedicine(SMFM)combinedwithuntreatedpatients
Copyright2014AMAGPharmaceuticals.AllRightsReserved.

11
11

FavorableMarketDynamics
FederalDrugQualityandSecurityAct(enacted11/2013)
ClarifiesrolesoftraditionalcompoundingandFDAapprovedmedicines
MakesclearFDA'sauthorityoverdrugcompoundingandrequiresagencytoengageand
coordinatewithstates
IfFDAidentifiesaregistered
outsourcingfacilitythat
compoundsanydrugproductsthat
areessentiallycopiesofMakenaas
definedundersection503B,FDA
intendstotakeactionasitdeems
appropriate.
FDAWebsite,posted7/13/2014

12

Copyright2014AMAGPharmaceuticals.AllRightsReserved.

12

SuccessFactorsforAchieving
Makena GrowthPotential
Operational
Excellence

Increasephysicianandpatientawareness
Expandcommercial/Medicaidaccessandreimbursement
Partner withhighpotentialdistributionchannelsincludingcompounding
pharmacies
Improvepatientcompliance(moreinjectionsperpatient)

Lifecycle
Management
Strategies

Uniquedistributionmodelreducesimpactofpotentialfuturegenerics
Lifecyclemanagementactivitiesalreadyunderway,usingestablished
approachestoimprovelikelihoodofsuccess
Routeofadministration
Drugdeliverytechnologies
Reformulationtechnologies

Portfolio
Expansion

Broadenproductofferinginmaternalhealth
Acquire/licenseassetswithinwomenshealthsegment
Leveragehighperformingspecialtycommercialteam

Copyright2014AMAGPharmaceuticals.AllRightsReserved.

13

FinanciallyTransformativeTransaction

Preliminary2015ViewofCombinedCompany

BalanceSheet

AtClosing
(inmillions)

IncomeStatement

(in millions)

Cashandinvestments

$100

U.S. productsales

Seniordebt

$340

Operatingsynergies

Convertibledebt

$200

Basic sharesoutstanding

25.2

Netoperatinglosses*

2015
ProForma
~$350
$20

~$500

*Subjecttolimitations
Copyright2014AMAGPharmaceuticals.AllRightsReserved.

14

TransactionCreatesSignificant
ShareholderValue
TransformsAMAG intoaprofitable,highgrowth,
multiproductspecialtypharmaceuticalcompany
Addsaprovenproduct inatherapeuticareaof
strategicinterestforFeraheme
Providesa newcommercialplatformforportfolio
expansionthroughbusinessdevelopment
Offerscompellingfinancialbenefits addssignificant
revenues,profitabilityandsynergies

Copyright2014AMAGPharmaceuticals.AllRightsReserved.

15