Drug M&A comes down with case of antitrust fever

Horizon Therapeutics

17/05/2023 01:12

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Robert Cyran
       NEW YORK, May 16 (Reuters Breakingviews) - Amgen’s $28
bln purchase of rival Horizon could unfairly boost the target’s
treatments, the merger watchdog says. The FTC’s focus on
so-called bundling could be troublesome for the pharma industry,
but is also hard to prove. Investors may be too pessimistic
about the deal.

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    CONTEXT NEWS 
    The U.S. Federal Trade Commission said on May 16 it had sued
to block Amgen’s $28 billion acquisition of Horizon
Therapeutics.
    The antitrust watchdog said the acquisition would enable
Amgen, which owns several blockbuster drugs, to pressure
insurance companies and firms that manage prescription drugs on
their behalf into favoring Horizon’s treatments for thyroid eye
disease and gout. This could favor the uptake of these products
and entrench them against possible new competitors.
    Amgen said it was disappointed and noted that the FTC’s
objections over bundling were theoretical. It also said it
committed not to bundle Horizon’s products.

 (Editing by John Foley and Thomas Shum)
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