The Federal Trade Commission (FTC) announced on Friday that it has reached a settlement with Amgen regarding its merger with Horizon Therapeutics. The settlement prohibits Amgen, a biopharmaceutical giant, from engaging in “bundling” certain products, which refers to offering favorable terms on a product by selling it alongside other drugs.
Earlier this year, the FTC moved to block Amgen’s $27.8 billion acquisition of Horizon Therapeutics. The regulatory body alleged that Amgen could potentially use its negotiating power after the merger to solidify monopoly positions on two highly priced drugs from Horizon, namely Tepezza and Krystexxa. Tepezza is used for the treatment of thyroid eye disease, while Krystexxa is used for chronic refractory gout. In light of the settlement, Amgen will be prohibited from bundling either of these medications with another product.
As a result of this settlement, a federal court preliminary injunction action hearing on the case will be dismissed, allowing the merger between Amgen and Horizon Therapeutics to proceed.
Following this news, Amgen’s stock rose by 1.4% to $259.90, while Horizon’s stock increased by 2.8% to $115.85 in premarket trading on Friday.