Amag names new CEO, allows shareholder to raise stake

Wed May 9, 2012 6:00pm EDT

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(Reuters) - Biopharmaceutical company Amag Pharmaceuticals Inc (AMAG.O) named William Heiden as its CEO, and allowed largest shareholder Adage Capital to raise its stake in the company up to 25 percent.

Amag also said it was not actively looking for a sale anymore and would focus more on developing its anemia drug Feraheme, used to treat iron deficiency in adults with chronic kidney disease.

Amag had hired Jefferies and Co as financial adviser to explore strategic alternatives, after its chief executive departed in November.

Heiden, who replaces interim CEO Frank Thomas, joins AMAG from GTC Biotherapeutics Inc, where he was the chief executive officer.

Investment management firm Adage Capital had reported a 19.5 percent passive stake in AMAG as of March 2, 2012.

Amag shares were down 6 percent in extended trade. They had closed at $16.02 on Wednesday on the Nasdaq. (Reporting by Adithya Venkatesan in Bangalore; Editing by Saumyadeb Chakrabarty)

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