FTC Sues To Block Amgen's $27.8 Bln Acquisition Of Horizon Therapeutics

(RTTNews) - The U.S. Federal Trade Commission sued to block Amgen Inc's (AMGN) proposed $27.8 billion acquisition of Horizon Therapeutics PLC (HZNP), saying the deal would enable the biopharmaceutical giant to stifle competition for thyroid eye disease and chronic refractory gout treatments.

HZNP closed Tuesday regular trading at $96.34 down $15.91 or 14.17%. But in the after-hours trade, the stock gained $0.74 or 0.77%.

The FTC said in the lawsuit that the deal would enable Amgen to use rebates on its existing blockbuster drugs to pressure insurance companies and pharmacy benefit managers into favoring Horizon's two monopoly products - Tepezza, used to treat thyroid eye disease, and Krystexxa, used to treat chronic refractory gout. Neither of these treatments have any competition in the pharmaceutical marketplace.

The Commission vote to authorize staff to seek a temporary restraining order and preliminary injunction was 3-0.

Horizon Therapeutics said in December 2022 that it signed a deal for its acquisition by Pillartree Limited., Amgen Inc.'s newly formed private firm, for $116.50 per share in cash. The acquisition valued Horizon at around $27.8 billion on a fully diluted basis with an enterprise value of around $28.3 billion.