CEO’S CORNER
Horizon Therapeutics
U.S. sues to prevent Amgen from acquiring Horizon Therapeutics for $27.8 billion.
According to the Federal Trade Commission, the agreement would allow Amgen to take advantage of its size to stifle competition for two pricey Horizon medications. In a lawsuit filed on Tuesday, the Federal Trade Commission argued that Amgen's $27.8 billion purchase of Horizon Therapeutics will stifle competition in the pharmaceutical sector.
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bundling.
Action by the commission. after years of indicating that it would be stricter in examining pharmaceutical deals, is its most forceful yet. By a vote of 3 to 0, its commissioners agreed to file the lawsuit.
Presented By Kennedy Lucas Publishings LCSenior Commission officer Holly Vedova stated that the case "sends a clear signal to the market: The F.T.C. won't hesitate to challenge mergers that enable pharmaceutical conglomerates to entrench their monopolies at the expense of consumers and fair competition."
Amgen stated that it will not package the two Horizon medications and that the merger did not provide any competitive difficulties.
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One of the biggest Horizon do not market rival goods, this situation is rare.
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Background: The F.T.C. has contested business transactions.
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The F.T.C. has opposed corporate mergers under the Biden administration for grounds that go beyond conventional antitrust worries about competing products.
Lina
the chair of the F.T.C., has shown strong skepticism against
corporate mergers in the tech sector. An attempt was made by the agency to prevent Meta, the parent company of Facebook and Instagram, from purchasing a small virtual reality start-up, but it was unsuccessful. This was a rare instance of an acquisition being contested in a developing industry for an unproven product. the FTC's attempt to prevent the Amgen-Horizon merger due to bundling issues. is also uncommon. Michael Carrier, a specialist on antitrust concerns in the pharmaceutical business at Rutgers Law School, said, "It tells us that the F.T.C. is considering new theories of harm that have not been front and center before.” Why It Matters: Bundling may result in higher prescription pricing.
The F.T.C.'s worries about bundling in the Amgen-Horizon merger are related to worries about expensive prescription medications. The rebates that pharmaceutical firms provide to insurers and the industry middlemen known as pharmacy benefit managers in exchange for promoting their products have drawn more attention. A business can prevent rivals from obtaining market share or deter them from even trying to enter the market by giving significant discounts through
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The medications treat chronic refractory gout as well as thyroid eye disease, an inflammatory disease.
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Regulators might have trouble enforcing Amgen's pledge to the F.T.C. not to combine the two Horizon products. Ameet Sarpatwari, a specialist in drug policy, noted that drug discussions are private and that manufacturers frequently find inventive ways to avoid them. Harvard Medical School's prescription drug policy. Amgen and Horizon declared that they would not back out of the agreement and would attempt to force the merger through the courts by the middle of December. A federal court in Illinois, where the F.T.C. filed its action, is likely to make the decision.
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The outcome will be a "litmus test" for whether antitrust law can be used to encourage affordable access to drugs, according to Dr. Sarpatwari.
Nulla nunc lectus porttitor vitae pulvinar magna. Sed et lacus quis enim mattis nonummy sodales.
“Write quickly and you will never