FTC Pauses Challenge to Amgen's $27.8 Billion Acquisition of Horizon Therapeutics

Intelligent Finance APP learned that a document submitted by the U.S. Federal Trade Commission (FTC) on Friday evening showed that the commission had suspended its challenge to Amgen's (AMGN.US) $27.8 billion acquisition of Horizon Therapeutics (HZNP.US), allowing the FTC to consider whether to close the case.

The ban will continue until September 18. The FTC and Amgen are set to meet in federal court in Chicago in September regarding the injunction. Amgen stated that it is aware of the move and is prepared to demonstrate to the court that there is no legal or factual basis to block the acquisition. In a statement, Amgen said, "We would be pleased if our commitments were accepted without a prolonged court process." The company also indicated that it anticipates completing the acquisition by mid-December this year.

Previously, the FTC filed a lawsuit on May 16 to block the deal, a rare move to halt a major pharmaceutical merger and acquisition transaction. The agency had expressed opposition to the transaction due to concerns that Amgen would use its high-volume drugs to pressure insurers and pharmacy benefit managers into providing favorable terms for two key products of Horizon Therapeutics—Tepezza, a rapidly growing treatment for thyroid eye disease, and Krystexxa, a gout medication.

Amgen announced in December last year its plan to acquire Horizon, stating that its rare disease drugs would provide some protection against the drug pricing provisions of the Inflation Reduction Act, which targets the most widely used drugs in Medicare.