Amgen gets green light from FTC for $27.8B Horizon Therapeutics deal
Amgen, Horizon anticipate deal to close in fourth quarter
FTC is a 'rogue agency' with no interest in protecting consumers: Carl Szabo
NetChoice Vice President and general counsel Carl Szabo discusses the Biden administration's latest move to gain more control over American businesses on 'The Big Money Show.'
The Federal Trade Commission (FTC) will allow Amgen to continue a $27.8 billion purchase of Horizon Therapeutics, while preventing the drugmaker from using anticompetitive tactics to extend the market dominance of two Horizon drugs.
The FTC filed a lawsuit on May 16 to stop the deal but suspended its challenge in late August, allowing the agency time to consider whether it should settle the case.
POT STOCKS RALLY AFTER HEALTH OFFICIALS ASK DEA TO RECLASSIFY MARIJUANA AS LOWER-RISK DRUG
Lina Khan, chair of the Federal Trade Commission (FTC), during a House Judiciary Committee hearing in Washington, DC, US, on Thursday, July 13, 2023. Khan is set for a grilling by House Republicans who've been sharply critical of her approach to anti (Al Drago/Bloomberg via Getty Images / Getty Images)
"The order announced today prohibits Amgen from engaging in any cross-product bundling or exclusionary rebating schemes involving Horizon’s monopoly drugs," FTC Chair Lina Khan said in a statement. "Because this deal would not give a firm control over products or services that its rivals use to compete, it does not raise traditional concerns about degrading competitors’ access to key inputs or improper information exchange, which can be achieved through subtle and varied means that are difficult to detect."
THE HOUSING SHORTAGE IS GETTING WORSE
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMGN | AMGEN INC. | 278.10 | -4.77 | -1.69% |
| HZPN | NO DATA AVAILABLE | - | - | - |
IT’S ELON MUSK VS MARTIN SHKRELI IN A BATTLE OVER HIS X ACCOUNT
The FTC was concerned that Amgen would leverage its drugs to secure favorable insurance coverage terms for Horizon's thyroid eye disease treatment Tepezza and gout drug Krystexxa.
Under the settlement, Amgen is prohibited from bundling any of its products with Tepezza or Krystexxa. Amgen also cannot use any product rebate or contract term to exclude or disadvantage any product that would compete with those drugs. It also prevents Amgen from buying any competitors to the two Horizon drugs without the FTC's permission.
US ECONOMY ADDS 187,000 JOBS IN AUGUST WHILE UNEMPLOYMENT RATE UNEXPECTEDLY JUMPS
Consolidation in the industry has given companies the power to engage in exclusionary practices that can cause prices for essential medications to surge, the FTC said in a statement.
CLICK HERE TO GET THE FOX NEWS APP
The companies said they anticipate closing the deal in the fourth quarter.
Reuters contributed to this report.