Robert Galbraith | Reuters
Horizon Therapeutics expects sale valued at $27.8 billion amgen according to a by the end of the third quarter, earlier than previously planned – if the Federal Trade Commission’s attempt to block the deal fails document filed with the Securities and Exchange Commission on Thursday.
The FTC filed a lawsuit Tuesday in federal court in Illinois seeking to have the lawsuit dismissed The Acquisitionon the grounds that it would “suppress competition” in the pharmaceutical industry.
Horizon’s new SEC filing said the deal could close by “late Q3 or early Q4 2023” if a federal court denies the FTC’s motion by September 15. The companies agreed not to complete the acquisition until that date or two business days after the court rules on the lawsuit.
Horizon’s estimate is earlier than when the companies and Wall Street analysts originally expected the deal to close following the FTC’s lawsuit. The parties previously said it could close around mid-December.
Horizon’s stock price rose about 1% in early morning trading on Thursday. Amgen’s stock price fell about 1%.
If closed, Amgen would gain access to Horizon’s blockbuster drug for thyroid eye disease. Tepezzaand his gout remedy Krystexxa.
These treatments could help Amgen offset potential sales declines caused by several patent expirations for important treatments in the next decade.
They are also at the center of the FTC’s lawsuit seeking to block the deal. The agency said the deal would allow Amgen to “consolidate its monopoly positions” on Horizon’s two fast-growing drugs.
Amgen would be able to offer discounts on its existing drugs to pressure insurers and benefit managers at pharmacies to favor the two Horizon products, a strategy known as “cross-market bundling.”
On Tuesday, Amgen said in a statement it had “proved overwhelmingly” that the merger would not raise any competition issues.
Horizon said in a separate statement that it had “no intention” to engage in cross-market bundling.