AMAG Pharmaceuticals Denied Insurance Claim for $30M Loss Linked to 2017 Manufacturing Incident at Pfizer Plant

AMAG Pharmaceuticals has been denied insurance coverage for business losses exceeding $30 million related to a 2017 manufacturing incident at Pfizer’s McPherson, Kansas facility. A district judge in Massachusetts recently ruled in favor of American Guarantee and Liability Insurance Company (AGLIC), which had denied AMAG’s claim for losses stemming from an air leak in Pfizer’s M6 filling room.

The incident caused contamination and mold issues that led to the scrapping of four batches of AMAG’s preterm birth drug, Makena. AMAG argued that the losses were covered under the policy due to "direct physical loss of or damage to" the property, but the court found that the conditions for coverage were not met. Pfizer’s McPherson facility has a history of regulatory issues, including multiple FDA warnings.