The Federal Trade Commission (FTC) filed a lawsuit on Tuesday to block Amgen’s $27.8 billion acquisition of Horizon Therapeutics. The FTC alleges that the deal would harm competition in the market for autoimmune drugs.
Amgen is a leading pharmaceutical company that makes a variety of drugs, including Enbrel, a blockbuster treatment for rheumatoid arthritis. Horizon Therapeutics is a smaller company that makes a number of drugs for autoimmune diseases, including Tepezza, which is used to treat thyroid eye disease, and Krystexxa, which is used to treat chronic refractory gout.
The FTC alleges that the acquisition would give Amgen a monopoly on the market for Tepezza and Krystexxa. The agency also alleges that the deal would allow Amgen to raise prices for these drugs and reduce competition in the development of new treatments for autoimmune diseases.
Amgen has said that it is confident that the acquisition will be approved by regulators. The company has argued that the deal will create a more efficient and innovative company that can better serve patients.
The FTC’s lawsuit is the latest in a series of antitrust challenges to pharmaceutical mergers. In recent years, the FTC has blocked a number of deals in the pharmaceutical industry, including Pfizer’s acquisition of Hospira and Teva’s acquisition of Actavis.
The FTC’s lawsuit is a significant setback for Amgen’s acquisition of Horizon Therapeutics. The deal is still subject to review by a federal judge, but the FTC’s lawsuit is likely to make it more difficult for Amgen to complete the acquisition.
The outcome of the FTC’s lawsuit could have a significant impact on the pharmaceutical industry. The deal’s failure could discourage other pharmaceutical companies from pursuing mergers and acquisitions. It could also lead to higher prices for patients who rely on drugs that are currently produced by small companies.
The FTC’s lawsuit is a reminder that the agency is taking a tough stance on pharmaceutical mergers. The agency is likely to continue to challenge deals that it believes could harm competition and raise prices for patients.
