The US Federal Trade Commission (FTC) is expected to file a lawsuit on Tuesday in an attempt to block the $27.8 billion deal between Amgen Inc., one of the world's leading biotechnology companies, and Horizon Therapeutics Plc, a global biopharmaceutical company focused on rare diseases. According to an anonymous source familiar with the matter, this action by the FTC aims at preserving competition within the drug development industry.
Both Amgen and Horizon have been major players in creating innovative therapies for patients suffering from serious illnesses worldwide. However, concerns have arisen that their merger could lead to reduced innovation and collaboration among other pharmaceutical companies.
"The combination of these two giants would create a dominant player with too much influence over drug pricing, research priorities, and patient access," said Dr. Susan Michaels-Strasser, a health policy expert at Columbia University Medical Center.
This move by the FTC sends a strong message against further consolidation within an already highly concentrated market where prices continue to soar for life-saving medications.
"Pharmaceutical mergers can sometimes stifle innovation if there is no robust competition present in the market," explained John Davies Jr., professor of economics at Georgetown University specializing in antitrust issues. "It seems that this particular case has raised enough red flags for regulators that they feel compelled to intervene."
In response to these allegations surrounding potential harm caused by their proposed merger agreement, both Amgen and Horizon have expressed disappointment but are prepared for legal proceedings.
"We believe our acquisition of Horizon will ultimately benefit patients by expanding access to essential treatments while accelerating new product development," stated Robert A. Bradway, Chairman & Chief Executive Officer at Amgen Inc., adding that they plan on defending their position vigorously during any litigation process set forth by regulatory authorities like the FTC.
Horizon Therapeutics CEO Tim Walbert also expressed confidence in the merits of their proposed merger, stating that they "remain committed to working with Amgen and regulators to ensure that this transaction ultimately moves forward."
As the pharmaceutical industry continues to face scrutiny over pricing practices and access issues, it remains to be seen whether this legal action by the FTC will ultimately prevent the deal between Amgen and Horizon Therapeutics from moving ahead. However, one thing is clear: both companies are ready for a fight in defense of their highly contested merger proposal.