The U.S. Federal Trade Commission (FTC) has announced a temporary suspension of its opposition to Amgen’s proposed $27.8 billion acquisition of Horizon Therapeutics. This pause allows the FTC to consider the possibility of settling the case instead. The suspension will be in effect until September 18.
Amgen, aware of the development, has expressed its readiness to demonstrate in court that there are no legal or factual grounds to prevent the acquisition. The company has stated that it would prefer its commitment to be honored without the need for a lengthy court process. Amgen aims to finalize the acquisition by mid-December of this year.
The FTC had previously taken the unusual step of filing a lawsuit on May 16 to block the transaction. The agency’s primary concern was that Amgen might use its substantial drug portfolio to exert pressure on insurance companies and pharmacy benefit managers, potentially leading to favorable terms for Horizon’s key products – the fast-growing Tepezza, used for treating thyroid eye disease, and Krystexxa, a gout drug.
Amgen, based in Thousand Oaks, California, had announced its intention to acquire Horizon in December of the previous year. The move was seen as a strategy to shield itself from the drug pricing provisions of the Inflation Reduction Act, focusing on rare disease drugs that are less impacted by the government’s Medicare health plan.
The upcoming meeting between the FTC and Amgen, scheduled for September in a Chicago federal court, will address the injunction related to the acquisition.
Horizon Therapeutics has not yet responded to Reuters’ request for comment on the matter.
