RE:RE:FTC blockage of Amgen's US$28 BLN takeover of HorizonOnce the acquisition wraps — expected in the fourth quarter — Amgen won't be able to condition any product rebate or contract terms related to an Amgen product on the sale or positioning of either one of the Horizon drugs. Amgen also won't be allowed to acquire any new products that treat thyroid eye disease or chronic gout without FTC permission. https://www.investors.com/news/technology/amgen-stock-jumps-after-ftc-clears-its-horizon-therapeutics-buyout/ The settlement will likely reassure many in the pharmaceutical sector, as executives and investors had feared an activist FTC might seek to block more acquisitions — one of the key ways big drugmakers build their pipelines and a major draw for investors in pre-commercial biotechs.
“We think the broader industry is breathing a collective sigh of relief that M&A — a critical component of this sector’s innovation recipe — has indeed not been outlawed,” Christopher Raymond, an analyst at Piper Sandler, wrote in a note to clients.
What the FTC won was the ability to verify that pledge, through the appointment of a compliance monitor who will review insurer contracts within 30 days of signing. Amgen employees involved in the commercialization of the two drugs will be required to review the consent order annually and acknowledge that they understand and are in compliance.
https://www.biopharmadive.com/news/ftc-amgen-horizon-settlement-clear-challenge-bundling/692568/