Amgen completes $27.8B acquisition of Horizon
Thousand Oaks-based Amgen completed its largest acquisition in company history on Oct. 6, purchasing Horizon Therapeutics plc for $116.50 per share in cash, representing a transaction equity value of approximately $27.8 billion.
“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,” Bob Bradway, Amgen’s CEO and chairman, said in an press release.
“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.”
According to the press release, the acquisition will strengthen Amgen’s leading inflammation portfolio by adding first-in-class, early-in-lifecycle medicines such as Tepezza, Krystexxa and Uplizna, which all treat rare inflammatory diseases.
Amgen will be updating its fiscal year 2023 guidance during its third quarter earnings call, according to the company.
Amgen originally announced its intention to acquire Horizon in 2022, but delays came after the Federal Trade Commission sued Amgen attempting to block the purchase.
The FTC cited concerns and alleged that the purchasewould lessen competition and create a monopoly in the thyroid eye disease and chronic refractory gout markets.
The two reached a consent agreement on Sept. 1, paving the way for the purchase.
Per the agreement, Amgen agreed to not use its drug list to inhibit competition for Tepezza and Krystezza, according to the filing.
Amgen cannot engage in any product rebates for “the purchase, coverage, placement, or positioning” of Tepezza and Krystezza and it cannot create a disadvantage for competitive products to either drug, according to the consent agreement.
Amgen has repeatedly said it has no plans to leverage its drug portfolio to bundle Tepezza or Krystezza to stifle competition.
The company said the agreement will have no effect on Amgen’s existing business.