Amgen’s $27.8 billion acquisition of Horizon Therapeutics has been given the green light by the Federal Trade Commission (FTC), following a deal that addresses concerns of stifling competition in the pharmaceutical industry. The acquisition is expected to close early in the fourth quarter of this year.
The agreement comes after the FTC filed a lawsuit in May to block the acquisition, but now that the concerns have been addressed, the deal can proceed. To prevent anti-competitive practices, Amgen is prohibited from bundling Horizon’s drugs Tepezza and Krystexxa, as well as offering any rebates or discounts that may favor these products.
Moreover, Amgen must also seek approval from the FTC for any future acquisitions of products used to treat the same diseases as Tepezza and Krystexxa until 2032, further ensuring fair competition in the market.
This agreement also sees the dismissal of federal suits filed by attorneys general from California, Illinois, Minnesota, New York, Washington, and Wisconsin, lending further support to the resolution.
Following the announcement, Horizon’s stock price experienced a significant boost of nearly 3%, indicating positive investor sentiment regarding the deal. Amgen, on the other hand, saw a slight increase in its stock price.
Amgen has clarified that it does not intend to bundle Horizon’s medications and has reassured that the agreement will not have a detrimental impact on its business. However, Horizon has yet to release a comment on the matter, leaving their stance ambiguous.
By resolving the concerns raised by the FTC, Amgen and Horizon Therapeutics can move forward with their acquisition, benefiting both companies and potentially advancing medical treatments in the pharmaceutical industry.
“Zombie enthusiast. Subtly charming travel practitioner. Webaholic. Internet expert.”