RE:RE:FTC blockage of Amgen's US$28 BLN takeover of Horizon FTC takes tougher approach on Mega-Mergers
In recent years, the Federal Trade Commission (FTC) allowed drug industry mergers to move forward so long as the companies divested any overlapping treatments. Even then, it didn’t often demand adjustments. A Bloomberg Law analysis found that the FTC imposed conditions on less than one-third of the 38 pharmaceutical deals valued at $10 billion or more between 2010 and 2021.
But that could be changing. FTC Chair Lina Khan has taken a tougher approach to deals, challenging several major mergers including Microsoft Corp.’s proposed acquisition of Activision Blizzard Inc. and Intercontinental Exchange Inc.’s deal to buy mortgage software rival Black Knight Inc. In 2021, the FTC announced that it would reexamine its approach to drug mergers.
“Relatively few leading drugs have been developed within the largest pharmaceutical companies,” Khan said at a workshop last year on pharma deals. “As antitrust enforcers, it’s our job to promote their competition that will help create the right conditions for the next generation of scientific advances.”
The Horizon acquisition marks Amgen’s largest ever merger, and the FTC’s first major opportunity to test out that altered approach. While the companies don’t currently have much overlap in terms of areas of expertise, they are both working on treatments for eczema and lupus.