Amgen-Horizon Therapeutics Deal Regulatory Overhang: FTC Plans Lawsuit to Block $28B Takeover

The Federal Trade Commission is expected to file a lawsuit in a bid to block Amgen Inc's AMGN $28 billion takeover of Horizon Therapeutics PLC HZNP.

In December, Amgen agreed to buy Horizon Therapeutics at $116.50/share, implying an enterprise value of approximately $28.3 billion, marking the largest healthcare merger of the year.

Amgen said it was unaware of any decision made by the agency. "We will provide any appropriate updates when we have more information," Reuters reported citing the company's statement.

Reuters noted U.S. Senator Elizabeth Warren's letter to the FTC earlier this year expressing her concerns about pharmaceutical deals, including the Amgen-Horizon deal.

Also Read: Why Amgen Shares Are Trading Lower Today.

Given these companies' records of anti-competitive business practices, these acquisitions could cause further price increases on lifesaving drugs and prevent affordable alternatives from entering the market," she wrote in the letter to FTC Chair Lina Khan as well as Commissioners Rebecca Slaughter and Alvaro Bedoya.

The deal would give Amgen two fast-growing drugs, the thyroid eye disease treatment Tepezza and Krystexxa. 

Amgen and Horizon Therapeutics "have engaged in brazen price increases," including on Amgen's Enbrel for arthritis and Horizon's Krystexxa, a gout medication, said the senator.

A suit would mark the first time the FTC is seeking to stop a pharmaceutical deal in over a decade. 

Price Action: HZNP shares are down 17.90% at $92.20 during the premarket session on the last check Tuesday.