NEW YORK—Allos Therapeutics Inc. said Monday that a drug company it has not named withdrew an acquisition bid but that it is still in discussions to sell itself to Amag Pharmaceuticals Inc.
Amag agreed to acquire Allos in July in an all-stock deal valued at $268 million. Allos said another publicly traded company recently offered to buy it for $2.20 per share in cash, which valued the company at $232.5 million. However it said that company withdrew its offer Wednesday and Allos is no longer negotiating with that company.
Shares of Allos plunged 28 cents, or 16 percent, to $1.47 in morning trading.
The agreement with Amag would give Allos shareholders 0.1282 shares of Amag stock for each share of Allos.
However, that offer has hit some stumbling blocks. Investment firm MSMB Capital Management, which owns a 5.9 percent stake in Amag, said the deal is “ill-conceived” and has attempted to block it. MSMB also moved to replace five of the six directors on Amag’s board.
Allos is based in Westminster, Colo. It it makes the lymphoma drug Folotyn. Amag is headquartered in Lexington, Mass., and it makes Feraheme, which is intended to treat iron deficiency anemia in adults with chronic kidney disease.
Amag shares dipped 2 cents to $13.15.
