FTC Approves Amgen’s Acquisition of Horizon Therapeutics

One sentence summary – The Federal Trade Commission (FTC) has reached an agreement with Amgen, allowing the biopharmaceutical company’s acquisition of Horizon Therapeutics to proceed, despite concerns about potential competition stifling in the pharmaceutical industry; as part of the agreement, Amgen is prohibited from bundling two of Horizon’s drugs and pressuring insurers and pharmacy benefit managers to favor Horizon products, and will require FTC approval for future acquisitions of products treating the same diseases as Tepezza and Krystexxa until 2032.

At a glance

  • The FTC has reached an agreement with Amgen regarding its acquisition of Horizon Therapeutics.
  • The acquisition is expected to close in the early fourth quarter of this year.
  • The agreement prohibits Amgen from bundling two of Horizon’s drugs and pressuring insurers to favor Horizon products.
  • Amgen will need FTC approval to acquire products treating the same diseases as Tepezza and Krystexxa until 2032.
  • Attorneys general for several states have agreed to dismiss their federal suits against the merger.

The details

The Federal Trade Commission (FTC) has reached an agreement with biopharmaceutical company Amgen.

This agreement allows Amgen’s $27.8 billion acquisition of Horizon Therapeutics to proceed.

The acquisition is expected to close in the early fourth quarter of this year.

This resolution comes in response to a lawsuit filed by the FTC in May.

The FTC’s lawsuit sought to block the acquisition due to concerns about potential stifling of competition in the pharmaceutical industry.

As part of the agreement, Amgen is prohibited from bundling two of Horizon’s drugs, Tepezza and Krystexxa.

Amgen is also prohibited from pressuring insurers and pharmacy benefit managers to favor Horizon products.

Until 2032, Amgen will need FTC approval to acquire any products that treat the same diseases as Tepezza and Krystexxa.

Other requirements of the agreement will be effective for 15 years after finalization.

Attorneys general for California, Illinois, Minnesota, New York, Washington, and Wisconsin have agreed to dismiss their federal suits against the merger.

Following the announcement of the agreement, shares of Horizon rose nearly 3%.

Amgen’s stock also saw a slight increase after the announcement.

Amgen has stated that the agreement will have no impact on its business.

The company also stated that it has no intention to bundle Horizon’s medications.

The FTC’s lawsuit was prompted by concerns raised by Senator Elizabeth Warren.

Warren’s concerns were about potential antitrust issues and higher prices.

FTC Chairwoman Lina Khan has emphasized the agency’s commitment to challenging practices that raise drug prices, inhibit access, stifle innovation, or harm patients.

In addition to the Amgen-Horizon deal, the FTC is currently reviewing Pfizer’s $43 billion acquisition of Seagen, a cancer drug developer.

The FTC has faced challenges in court this year.

The agency lost cases against the Meta deal and Microsoft’s acquisition of Activision Blizzard.

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cnbc.com
– The Federal Trade Commission (FTC) has reached a deal with Amgen to allow its $27.8 billion purchase of Horizon Therapeutics to proceed.
The acquisition is expected to close in the early fourth quarter of this year.
The agreement resolves a lawsuit filed by the FTC in May, which sought to block the acquisition due to concerns about potential competition stifling in the pharmaceutical industry.
The deal prohibits Amgen from bundling two of Horizon’s drugs, Tepezza and Krystexxa, and from pressuring insurers and pharmacy benefit managers to favor Horizon products.
– Amgen will need FTC approval to acquire any products that treat the same diseases as Tepezza and Krystexxa until 2032.
– Other requirements of the agreement will be effective for 15 years after finalization.
– Attorneys general for California, Illinois, Minnesota, New York, Washington, and Wisconsin have agreed to dismiss their federal suits against the merger.
– Shares of Horizon rose nearly 3% following the announcement, while Amgen’s stock slightly increased.
– Amgen states that the agreement will have no impact on its business and that it has no intention to bundle Horizon’s medications.
The FTC’s lawsuit was prompted by concerns raised by Senator Elizabeth Warren about potential antitrust issues and higher prices.
– FTC Chairwoman Lina Khan stated that the agency will continue to challenge practices that raise drug prices, inhibit access, stifle innovation, or harm patients.
The FTC is currently reviewing Pfizer’s $43 billion acquisition of Seagen, a cancer drug developer.
The FTC has faced challenges in court this year, losing cases against the Meta deal and Microsoft’s acquisition of Activision Blizzard.

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