The Federal Trade Commission (FTC) has announced a resolution in its case against Amgen, allowing the company’s $27.8 billion acquisition of Horizon Therapeutics to proceed. The acquisition is Amgen’s largest ever and is expected to close in the fourth quarter of this year.
The FTC initially filed a lawsuit in May, claiming that the acquisition would give Amgen too much control over the pharmaceutical industry and harm competition. However, the FTC temporarily suspended the suit to consider a settlement. The agreement reached imposes certain restrictions on Amgen to address the concerns raised by the FDA.
One specific restriction is that Amgen is prohibited from “bundling” Horizon’s drugs Tepezza and Krystexxa. This means that Amgen cannot offer discounts or rebates on its existing products to favor Horizon’s drugs. Additionally, Amgen must seek approval from the FTC for any future acquisitions of products that treat the same diseases as Tepezza and Krystexxa.
The agreement’s requirements will be effective for 15 years, and Amgen must seek sign-offs from the FTC through 2032. As part of the settlement, attorneys general from six states have agreed to dismiss their federal suits seeking to block the merger.
Shares of Horizon rose nearly 3% following the announcement, while Amgen’s stock saw a slight increase. A spokesperson for Amgen emphasized that the company has no intention of bundling Horizon’s medications and that the agreement will have no impact on its business.
Amgen’s move to acquire Horizon was met with regulatory and political scrutiny, with concerns over potential antitrust issues. Senator Elizabeth Warren called for heavy scrutiny of the acquisition, along with the pending merger of Indivior and Opian, warning that the deals could lead to higher prices.
FTC Chairwoman Lina Khan stated that the agency will continue to challenge unlawful practices that raise drug prices and hinder patient access. The FTC is currently reviewing Pfizer’s $43 billion acquisition of cancer drug developer Seagen, one of this year’s largest deals.
Under Khan’s leadership, the FTC has taken action against several high-profile mergers. However, the agency has faced challenges in court this year, losing cases to block deals involving Meta and Microsoft’s acquisition of Activision Blizzard.
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