The consent order agreement with FTC allows Amgen to complete its proposed $27.8bn acquisition of Horizon Therapeutics, while restricting the use of anti-competitive strategies to extend dominance of two Horizon drugs
Amgen headquarters in Thousand Oaks, California. (Credit: Coolcaesar/Wikipedia)
Amgen and Horizon Therapeutics have signed a consent order agreement with the US Federal Trade Commission (FTC) to resolve their pending administrative lawsuit.
The agreement allows Amgen to complete its proposed $27.8bn acquisition of Horizon, while restricting the use of anti-competitive strategies to extend dominance of two Horizon drugs.
In December last year, Amgen signed an agreement to acquire the Irish biopharmaceutical company.
In May this year, FTC filed a complaint in the US District Court for the Northern District of Illinois, challenging the proposed transaction.
The US regulator alleged that the transaction would allow Amgen to foreclose the rival drugs to Tepezza and Krystexxa, and would entrench their monopoly positions in the market.
The agreement represents a nationwide settlement of lawsuits by the FTC and attorneys general from six states, California, Illinois, Minnesota, New York, Washington, and Wisconsin, challenging the acquisition.
FTC Bureau of Competition director Henry Liu said: “Consolidation in the pharmaceutical industry has given companies the power and incentive to engage in exclusionary rebating practices, which can lead to sky-rocketing prices on essential medications.
“Today’s proposed resolution sends a clear signal that the FTC and its state partners will scrutinise pharmaceutical mergers that enable such practices, and defend patients and competition in this vital marketplace.”
Under the terms of the agreement, Amgen is restricted from developing a product with Horizon’s medications Tepezza or Krystexxa.
The company is not allowed to condition any product rebate or contract terms related to any of its products, on the sale or positioning of either one of these drugs.
In addition, Amgen is restricted from using any product rebate or contract term to exclude or disadvantage any product that would compete with Tepezza or Krystexxa.
Amgen and Horizon will jointly seek orders to dismiss the preliminary injunction motion and dissolve the temporary restraining order (TRO) in the US District Court.
Also, the two companies will pursue final approvals to complete the proposed acquisition, which is expected in the early fourth quarter of this year.