Robert Galbraith | Reuters
Horizon therapies expects sales of $27.8 billion to Amgen to close as early as the end of the third quarter, ahead of schedule — if the Federal Trade Commission’s attempt to block the deal fails — according to a document filed Thursday with the Securities and Exchange Commission.
The FTC filed a lawsuit in Illinois federal court on Tuesday to stop it the acquisitionarguing that it would “stifle competition in the pharmaceutical industry”.
Ireland-based Horizon said in the new SEC filing that the deal could close by “late Q3 or early Q4 of 2023” if a federal court denies the FTC’s request on Sept. 15. The companies agreed not to close the acquisition until that date or the second business day after the court rules on the lawsuit.
Horizon’s estimate is earlier than when the companies and Wall Street analysts initially expected the deal to close after the FTC filed a lawsuit. Previously, the parties said it could close around mid-December.
Horizon’s share price was up about 1% during early morning trading on Thursday. Share price of California-based Amgen fell about 1% lower.
Those treatments could help Amgen offset potential sales declines as a result different patent expirations for the most important treatments in the next decade.
They are also at the center of the FTC’s lawsuit to block the deal. The agency said the deal would allow Amgen to “enshrine the monopoly positions” of those two high-growth Horizon drugs.
Amgen could offer discounts on its existing drugs to pressure insurers and pharmacy managers to favor the two Horizon products, a strategy known as “cross-market bundling.”
On Tuesday, Amgen said in a statement that it has “overwhelmingly demonstrated” that the merger does not raise any competition concerns.
Horizon said in a separate statement that it “has no plans and has no plans” to engage in cross-market bundling.