USA — In a pivotal twist, the US Federal Trade Commission (FTC) has momentarily paused its challenge to Amgen’s proposed acquisition of Horizon Therapeutics.
This strategic move opens the door to potential settlement discussions that could defuse the agency’s apprehensions about the colossal US$27.8-billion deal.
The FTC’s temporary halt to internal proceedings, which extends until September 18, grants its commissioners the opportunity to deliberate on whether a negotiated resolution might be the path forward.
A breather in legal duel
Late on Friday, the FTC announced its decision to temporarily suspend its in-house legal pursuit, a course that contends the proposed merger violates antitrust legislation.
At the heart of the matter lies the regulator’s assertion that should the merger proceed, Amgen could wield its influence to solidify the monopoly status of select Horizon offerings, specifically Tepezza (teprotumumab) – a therapy for thyroid eye disease – and Krystexxa (pegloticase) – a treatment for chronic refractory gout.
The FTC’s stance is bolstered by the notable price tags affixed to these drugs; Tepezza’s six-month course commands approximately US$350,000, while a year’s supply of Krystexxa hovers around US$650,000.
Amid the regulatory crossfire, Amgen stands by its claim that the planned merger doesn’t raise any substantial competition concerns.
In fact, the company contends that the integration would bolster the accessibility of Horizon’s specialized medications designed for rare diseases.
A statement released by Amgen on Friday affirmed the company’s commitment to forsake any future sales strategies that might draw the FTC’s ire.
For instance, Amgen stated it would abstain from bundling Tepezza and Krystexxa with its own product offerings – a maneuver that the FTC postulated could potentially grant these drugs favored standing on insurers’ lists of covered medications.
“We would welcome the honoring of our commitment over an extended court process,” Amgen conveyed.
Potential for settlement
Should the FTC opt to pursue a settlement, it would mark a rare instance of the agency discontinuing its litigation trajectory.
The internal case mounted by the FTC against Amgen is a key component of a commonly employed two-step legal maneuver aimed at thwarting mergers.
As the agency requires time to prosecute its in-house argument, it concurrently seeks an injunction from a federal court to forestall the deal’s finalization while the administrative trial unfolds.
As the showdown between the FTC and Amgen unfolds, a significant hearing over the injunction looms in a Chicago federal court next month.
However, if the two opponents find common ground and choose to settle, the necessity of this injunction hearing could be obviated.
Judge John Kness, presiding over the case, has indicated that a verdict on whether to halt the merger might be issued by the conclusion of October.
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