Published on 17 May 2023 on Zacks via Yahoo Finance
FTC Challenges Amgen's (AMGN) $28B Acquisition of Horizon
On Tuesday, the Federal Trade Commission (“FTC”) filed a lawsuit in Federal Court to halt biotech giant Amgen's AMGN $28 billion acquisition of Horizon Therapeutics HZNP.
Last December, Amgen announced that it will acquire Horizon Therapeutics for $116.50 per share in cash or $27.8 billion. The acquisition will add a complementary portfolio of rare disease drugs like Tepezza, Krystexxa and Uplizna to AMGN’s diverse portfolio. The deal was the largest pharmaceutical transaction announced in 2022.
Per the FTC, if the acquisition is allowed to go through, a large cap giant like Amgen could leverage its position with insurance companies and pharmacy benefit managers to entrench the monopoly positions for two of Horizon's two key products — Tepezza (approved for treating thyroid eye disease) and Krystexxa (approved for treating chronic refractory gout). Per the agency, the drugs currently face little to no competition in the market and are sold at very high prices to patients.