Amgen-Horizon saga could make Big Pharma think twice before deals - analysts

Horizon Therapeutics

01/09/2023 17:39

** Analysts say the terms of Amgen's settlement with the
U.S. FTC on Friday to close its $27.8 bln deal for Horizon
Therapeutics  HZNP.O  could make large drugmakers reconsider how
they approach M&A 
    ** Under the settlement, AMGN is prohibited from leveraging
its drugs to "bundle" them with two of Horizon's treatments in
order to secure favorable insurance coverage terms 
   ** While this deal is going through on its merit, the
arguments and settlement which involves no bundling and prior
approval requirements before AMGN buying any related products
could pose a challenge for future deals - Wells Fargo
    ** FTC is scrutinizing bigger deals more as it has been the
case with HZNP and SGEN, says Wells Fargo, adding it views that
big biopharma would want to stay under the radar with $10
billion-15 billion deals
    ** While it is a positive for the M&A space in the sector,
Truist analysts also believe this could be a theme for future
deals wherein such restrictions will apply to all future
transactions
    ** The Nasdaq composite index is down 0.25%
    

 (Reporting by Sriparna Roy in Bengaluru)
 ((Sriparna.Roy@thomsonreuters.com;))