Biotech index tumbles as FTC moves to block Amgen/Horizon deal

CymaBay Therapeutics

16/05/2023 17:15

** The Nasdaq biotechnology index  .NBI  on Tues was down 2.1%
on track for biggest one-day pct decline since Feb. 21 after
U.S. Federal Trade Commission said suing to stop Amgen Inc's
 AMGN.O  $27.8 billion purchase of Horizon Therapeutics Plc
 HZNP.O 
    ** FTC says deal would give Amgen "monopoly positions" for
thyroid eye disease, chronic refractory gout treatments
    ** NBI hit lowest level since April 28 with Horizon down
15.2% at $95.17, making it the index's biggest pct decliner on
the day. Amgen was down 1.0%
    ** Other big decliners in the index were Summit Therapeutics
 SMMT.O , down 15.6% at $1.55, and CymaBay Therapeutics
 CBAY.O , down 9.2% at $9.44
    ** Piper Sandler analyst Christopher Raymond argues that by
blocking the deal FTC "signaling not just a more aggressive
enforcement approach, but one that appears punitive and
arbitrary" 
    ** While it could drive M&A to earlier development stages,
Raymond describes the move as a "success penalty" that is
"likely to impact investment calculus for even the most
early-stage program in the long run" 

 (Reporting By Sinéad Carew, Lewis Krauskopf)
 ((sinead.carew@thomsonreuters.com; +13322191897;))