Amgen ‘Remains Committed’ to $27.8B Horizon Acquisition After FTC Challenge
Summary
At issue for the FTC are two Horizon drugs: Tepezza, which is approved to treat moderate to severe thyroid eye disease, and Krystexxa, a chronic gout therapy. In a statement issued Tuesday, the FTC said the deal would enable Amgen to leverage its portfolio of blockbuster drugs to “entrench the monopoly positions” of these two medicines by using rebates on its existing drugs to pressure insurance companies and pharmacy benefit managers into “favoring” Krystexxa and Tepezza. “Rampant consolidation in the pharmaceutical industry has given powerful companies a pass to exorbitantly hike prescription drug prices, deny patients access to more affordable generics, and hamstring innovation in life-saving markets,” FTC Bureau of Competition Director Holly Vedova said in the same statement. In a prepared statement, Amgen said it is disappointed by the FTC’s decision and remains committed to completing the acquisition, which the company contends “will bring significant benefits to patients suffering from very serious rare diseases in the U.S. and around the world.” Amgen stated that the medicines offered by the two companies generally treat different diseases and patient populations and emphasized that “there are no overlaps of competitive concern.” Horizon also responded to the FTC’s announcement, saying in a statement that the complaint “is rooted in a theory about potential future ‘bundled’ contracts with payors and not competitive overlap concerns." Amgen beat out Sanofi and J&J subsidiary Janssen for Horizon’s portfolio, which also includes Uplizna, an anti-AQP4 antibody approved to treat neuromyelitis optica spectrum disorder, a rare neuroinflammatory autoimmune disease.