By Manas Mishra and David Shepardson
(Reuters) -The U.S. Federal Trade Commission has allowed drugmaker Amgen Inc to move ahead with its $27.8 billion deal to buy Horizon Therapeutics
The FTC filed a lawsuit on May 16 aimed at stopping the transaction, but suspended its challenge in late August. The suspension enabled the agency to consider whether it should settle the case.
The Thousand Oaks, California-based company announced plans to buy Horizon in December last year. However, the FTC filed a lawsuit on May 16 aimed at stopping the transaction in a rare move to block a large pharmaceutical deal.
The agency had opposed the deal because of concern that Amgen would leverage its big selling drugs to pressure insurance companies and pharmacy benefit managers to give favorable terms for Horizon’s two key products – the fast-growing thyroid eye disease treatment Tepezza and gout drug Krystexxa.
Under the settlement, Amgen is prohibited from bundling any of its products with Tepezza or Krystexxa. Amgen also cannot use any product rebate or contract term to exclude or disadvantage any product that would compete with those drugs.
The FTC, in a statement, said that consolidation in the industry has given companies the power to engage in exclusionary practices that can cause prices for essential medications to surge.
“The bundling and exclusionary rebating practices at issue in this matter highlight deeper concerns about how pharmaceutical companies and pharmacy benefit managers may work together to deprive Americans of access to affordable drugs,” said Lina Khan, chair of the FTC, in the statement.
Horizon’s shares rose 2.8% in premarket trading.
(Reporting by Manas Mishra in Bengaluru and David Shepardson in Washington; Editing by Devika Syamnath)
