FTC clears Amgen’s $28 billion acquisition of Horizon Therapeutics

Shares of Horizon Therapeutics PLC (NASDAQ: HZNP) are trading materially up today after the FTC allowed Amgen Inc (NASDAQ: AMGN) to move forward with its $27.8 billion acquisition of the biopharmaceutical company.

FTC imposed restrictions on Amgen-Horizon deal

Amgen now expects to complete the said transaction – its largest ever – in the final quarter of this year, as per the press release. The “go ahead” from the U.S. Federal Trade Commission did come with a few restrictions, though.

To begin with, Amgen has been barred from “bundling” Krystexxa (treatment for gout) and Tepezza (treatment for thyroid eye disease) – two of Horizon’s fastest-growing drugs.

It will also need approval from the government agency to purchase any other treatments for gout or the thyroid eye disease – a requirement that will remain in place through 2032.

Shares of Amgen are also in the green on Friday.

Why is Amgen buying Horizon Therapeutics?

Amgen is convinced that buying Horizon Therapeutics (read more) will help expand its footprint in rare diseases. Reacting to today’s development, its spokesperson said:

Amgen has no reason, ability, or intention to bundle [Krystexxa and Tepezza]. The new agreement will have no impact on Amgen’s business.

The stock market news arrives only weeks after Amgen reported strong results for its second financial quarter and raised its guidance for the full year. Its shares are still trading roughly at the same price at which they started the year 2023.

Note that Pfizer’s $43 billion purchase of Seagen which Invezz reported here is currently being reviewed by the Federal Trade Commission as well.