Amgen And Horizon Deal Allowed By Ftc

 Amgen And Horizon Deal Allowed By Ftc

Amegen's $27.8 Billion Worth of Horizon Deal Allowed By FTC

The US FTC has finally allowed Amegen Inc. to go ahead with its acquisition of the pharmaceutical company 'Horizon Therapeutics'. The proposed deal is worth $27.8 billion and will allow the AMGN to buy the HZNP and thus improve its footprint in the pharma sector.

Earlier, the Federal Trade Commission had raised objections about the drugmaker's intentions to buy Horizon Therapeutics. In fact, the FTC even went as far as to file a lawsuit a few months ago to block the proposed deal.

According to the FTC, the proposed deal would allow Amegen to pressure the relevant market players to give better terms for its products of Horizon. For now, Horizon has a gout drug and a thyroid eye disease treatment in its portfolio and both of these drugs have high demand.

FTC Wants To Discourage Anticompetitive Practises

After the FTC deal, the Agmen company would no longer be able to bundle Krystexxa or Tepezza with any of its own products. As a result of this prohibition, the company would not be able to offer any product rebate or put the competitor's products at a disadvantage.

Another part of the deal is that Amegen will also not be able to acquire any other companies that offer a rival treatment to the drugs offered by Horizon. In short, FTC has ensured that Amegen will not use this acquisition to establish a monopoly in the market.

FTC added that consolidation deals in the past have allowed several pharmaceutical companies to have an unfair advantage and are also involved in unfair price hikes. This time, the FTC wanted to ensure that something like this doesn't happen at all.

As per the company sources, the Amegen deal will close during Q4 of 2023 and would allow it to have a wider footprint in the market.

After the news, the shares of Horizon jumped by 3%, while the shares of Amegen only experienced a little upside.

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