Horizon Therapeutics says Amgen deal could close earlier than planned if FTC fails to block it

Robert Galbraith | Reuters

Horizon Therapeutics expects its $27.8 billion sale to Amgen to close as early as the tip of the third quarter, earlier than beforehand planned — if the Federal Trade Commission’s attempt to block the deal fails — in accordance to a document filed Thursday with the Securities and Exchange Commission. 

The FTC on Tuesday filed a lawsuit in Illinois federal courtroom looking for to halt the acquisition, arguing it would “stifle competitors” within the pharmaceutical industry.

Horizon, which is predicated in Ireland, mentioned within the new SEC submitting that the deal could close by the “finish of Q3 or early in This fall of 2023” if a federal courtroom denies the FTC’s request by Sept. 15. The corporations agreed not to close the acquisition till that date or the second enterprise day after the courtroom guidelines on the lawsuit.

Horizon’s estimate is earlier than when the businesses and Wall Street analysts have been initially anticipating the deal to close after the FTC sued. The events beforehand mentioned it could close round mid-December.

Horizon’s share value was about 1% larger in afternoon buying and selling Thursday. California-based Amgen’s inventory value dipped 1% decrease.

If accomplished, the deal would give Amgen entry to Horizon’s blockbuster thyroid eye illness drug, Tepezza, and its gout drugs, Krystexxa.

Those remedies could assist Amgen offset attainable income declines pushed by several patent expirations for key remedies over the following decade. 

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They’re additionally on the heart of the FTC’s lawsuit looking for to block the deal. The company mentioned the deal would enable Amgen to “entrench the monopoly positions” of these two fast-growing medicine from Horizon.

Amgen would have the ability to provide rebates on its current medicines to strain insurers and pharmacy benefit managers into favoring the 2 Horizon merchandise, a method often known as “cross-market bundling.”

On Tuesday, Amgen mentioned in a press release it has “overwhelmingly demonstrated” that the merger poses no aggressive points.

Horizon, in a separate assertion, mentioned it “doesn’t and has no plans” to have interaction in cross-market bundling.

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