Amgen Completes $27.8B Acquisition of Horizon Therapeutics

Amgen has completed the acquisition of Horizon Therapeutics for $27.8 billion, after the Federal Trade Commission (FTC) gave the go-ahead for the acquistion last month.

The agreement resolves a lawsuit the FTC filed in May seeking to block the acquisition over concerns it would allow Amgen to leverage its drug portfolio to stifle competition in the pharmaceutical industry. 

The case was closely watched by many in the pharma industry because it was the first large merger between drugmakers that the FTC had sought to stop in many years. With Amgen ultimately cleared to buy Horizon, the industry will likely celebrate the result. This, in turn, could prompt pharma’s dealmakers to give large buyouts more consideration.

However, the agreement does prohibit Amgen from “bundling” two of Horizon’s blockbuster drugs, which involves offering rebates or discounts on its existing products to pressure insurers and pharmacy benefit managers into favoring the Horizon products.

Last December Amgen announced its intent to purchase the global biotechnology company.

“Today marks an exciting milestone as we welcome Horizon employees to Amgen and begin working together to serve even more patients around the world suffering from serious illnesses,” said Robert A. Bradway, Amgen’s chairman and chief executive officer. “We have strong momentum in our core business and the addition of Horizon will further position Amgen as a leader across a broader range of diseases.”

The strategic and financial rationale for the acquisition includes:

• Alignment with Amgen’s core strategy of delivering innovative medicines that make a significant difference for patients suffering from serious diseases.
• Strengthening of Amgen’s leading inflammation portfolio by adding first-in-class, early-in-lifecycle medicines such as TEPEZZA (teprotumumab-trbw), KRYSTEXXA (pegloticase), and UPLIZNA (inebilizumab-cdon), which treat rare inflammatory diseases.
• Leveraging of Amgen’s world-class capabilities in biologics research and development, process development and manufacturing, as well as Amgen’s presence in more than 100 countries around the world.
• Generating robust cash flow to support capital allocation priorities, including ongoing investment in innovation while sustaining a commitment to an investment grade credit rating.
• Acceleration of revenue growth; expected to be accretive to non-GAAP earnings per share from 2024.

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