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UPDATE 1-Amag Pharmaceuticals to divest two women's health drugs, CEO to step down

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Jan 9 (Reuters) - Amag Pharmaceuticals Inc said on Thursday it would divest two of its women's health drugs, after the drugmaker conducted a strategic review under pressure from hedge fund Caligan Partners.

The company also said Chief Executive Officer William Heiden has decided to step down, but would continue in his role as CEO and president until his successor is appointed.

It said it would divest Vyleesi, a female libido drug, and Intrarosa, a treatment for pain in post-menopausal women, as it had received preliminary expressions of interest in buying or sub-licensing the rights to the drugs.

The drugmaker settled with activist investor Caligan in October, adding two directors to its board proposed by the hedge fund.

The company's Makena treatment, hormonal injection for reducing the risk of pre-term birth, is currently on the market, but a panel of experts to the U.S. Food and Drugs Administration in October voted to withdraw the drug.

The uncertainty around the long-term durability of Makena's revenues makes it challenging to invest in both our promising pipeline, William Heiden said.

Vyleesi was approved in June 2019 as the only injectable drug on the market for hypoactive sexual desire disorder. (https://reut.rs/2Na0WS2)

The company has engaged Goldman Sachs and Co. as its financial adviser. (Reporting by Manas Mishra and Trisha Roy in Bengaluru; Editing by Shinjini Ganguli)