Street View: Amgen has 'stronger' argument against FTC complaint

Horizon Therapeutics

17/05/2023 10:05

** The U.S. Federal Trade Commission (FTC) said on Tuesday
it has filed a lawsuit to stop biotech company Amgen Inc's
 AMGN.O  $27.8 billion acquisition of rival Horizon Therapeutics
 HZNP.O , in a rare move to block a large pharmaceutical deal
    ** Shares of AMGN and HZNP up ~0.8% in premarket trading;
HZNP had tumbled ~14% on Tuesday

    FTC STANCE COULD RISK BIG PHARMA M&As 
    ** Baird says AMGN will counter with "everything they have,
given what losing or admitting defeat would mean for any future
deals"
    ** Baird adds, "Amgen will be successful here but this could
now be, similar to Thanos's quest for the soul stone, a very
pyrrhic victory"
    ** Credit Suisse believes Amgen can overcome the FTC's
monopoly argument for blocking the merger as there is a lack of
competition in Thyroid Eye Disease (TED) and gout treatments
    ** Brokerage says FTC stance could have further
repercussions and enhances risk of doing M&A for big pharma
    ** Raymond James says it would be surprising if FTC's legal
argument holds when challenged by AMGN 
    ** Brokerage adds the implication for other pending deals
like Pfizer Inc  PFE.N  and Seagen Inc  SGEN.O  might be limited
    ** SVB Securities believes AMGN has "strong" arguments to
potentially win the case brought against it by the FTC and close
the proposed HZNP deal
     ** "There does not seem to be a strong rationale that the
FTC can justify that this specific deal would be
anti-competitive in nature," SVB says

 (Reporting by Roshan Abraham)
 ((Roshan.Abraham@thomsonreuters.com))