In a landmark move, biotechnology giant Amgen has finalized its acquisition of Horizon Therapeutics for a staggering $27.8 billion. The deal received the green light from the U.S. Federal Trade Commission (FTC) last month, cementing a significant milestone in the healthcare sector.
The acquisition was executed seamlessly within the fourth-quarter timeline, as stipulated by both Amgen and Horizon. This strategic move is poised to bolster Amgen’s adjusted earnings starting from the forthcoming year, enhancing the company’s position in the competitive market.
Under the terms of the settlement negotiated between Amgen and the FTC, Amgen is bound by strict prohibitions against employing anti-competitive practices aimed at prolonging Horizon’s dominance in the market, particularly concerning their revolutionary treatments for thyroid eye disease, Tepezza, and the breakthrough gout drug, Krystexxa.
This acquisition also raises critical questions about the tightening regulations surrounding mergers and acquisitions within the healthcare sector. Companies in this industry often resort to consolidation strategies as patents for existing treatments reach their expiration dates. The FTC’s antitrust lawsuit serves as a testament to the heightened scrutiny such transactions now face.
Incorporating Horizon’s cornerstone products, Tepezza and Krystexxa, marks a pivotal moment for Amgen, providing a strategic counterbalance to its “maturing product line.” Gregory Renza, an analyst at RBC Capital Markets, anticipates Tepezza’s potential to become a driving force for Amgen. Renza projects peak sales for the drug to reach an impressive $3.9 billion.
Market observers eagerly await Amgen’s updated annual forecast, which is slated for release during the third-quarter earnings call scheduled for November 1st. This eagerly anticipated event will shed further light on the anticipated impact of this acquisition on Amgen’s financial outlook.
The successful conclusion of $27.8 billion acquisition of Horizon Therapeutics by Amgen resonates as a major milestone in the healthcare sector, sending a clear signal to the industry of the escalating importance of consolidation for future growth. The implications of this acquisition are poised to reverberate throughout the sector, shaping the landscape for years to come.
Source: Reuters
