FTC suspends challenge to Amgen-Horizon Therapeutics deal
The Federal Trade Commission is suspending its challenge to Amgen's (AMGN) $27.8 billion bid to acquire Horizon Therapeutics (HZNP). The FTC is concerned Amgen will be able to bundle its products to a couple of Horizon's, giving it an advantage over rivals. It's a notion Amgen rejects. The FTC is pausing its challenge in hopes of reaching a settlement that would allow the deal to close. Yahoo Finance Health Care Reporter Anjalee Khemlani breaks the story down.
Video Transcript
- The Federal Trade Commission is making it easier for Amgen to acquire Horizon Therapeutics. The FTC is suspending its challenge of Amgen's $28 billion takeover of biopharma company, Horizon Therapeutics. Yahoo Finance senior reporter Anjalee Khemlani has all the details for us. Hey, Anjalee.
ANJALEE KHEMLANI: Hey, Brad. Happy Monday to you. So I wanted to start off with first of all, of course, this pause from the FTC is good news for Amgen, which is looking to close the deal with Horizon Therapeutics by December, that is staying on track with the original timeline.
Now, the FTC has caused their challenge of this $28 billion merger until September 18th. They're also still moving forward with an injunction hearing in September as well, and that's going to take place in Chicago. But the FTC did say in its filing on late Friday that it will consider proper resolution of this matter.
Now, what the core of the problem is is that the FTC is worried that with the takeover, Amgen has an opportunity to bundle its products with two in particular of Horizon that would give it sort of a market monopoly and an advantage over potential competitors. Right now, Horizon does have a really strong market for two areas of disease, one including thyroid eye disease. So as an example, that's what they're looking at and that's what the FTC is worried about.
Now, Amgen has repeatedly said it cannot because it's slate of products is different than Horizon's and is administered differently, and so that's not a issue. But they did say in a statement following the news that, quote, "We have been consistent with the Commission, the courts, and the public that we have no reason, ability, or intention to bundle Horizon's Tepezza or Krystexxa with any of our products and will not do so. We would be pleased if our commitment were honored instead of going through a lengthy court process."
That said, they're prepared to go to the courts and defend the acquisition. So that's where things stand right now. And of course, the September dates are soon coming up, so we will see if they reach a potential deal before then.
- So Anjalee, I mean, you have to keep in mind other companies probably looking for the outcome here. So how could the FTC's move on Amgen impact other deals?
ANJALEE KHEMLANI: There has been speculation that because of the fact that the FTC did initially challenge this deal, it could affect others like Pfizer's acquisition, $43 billion acquisition of Seagen. But there are others who say that because there are different issue altogether, it won't. But it is something still that the health care industry and the biopharma industry in general are watching their concerns. That because of how aggressively the FTC is going after these mergers, that each and every one is something to keep an eye on, to watch what to look out for that the FTC is going after.
- All right, Yahoo Finance's own Anjalee khemlani. Thank you so much, Anj, for covering all of that and bringing it to our attention here this morning.
