Shares of Horizon Therapeutics tumbled on Tuesday following a report that the Federal Trade Commission (FTC) is preparing to block its $27.8 billion sale to Amgen.
Per a Bloomberg report citing an unnamed source familiar with the matter, the FTC could file a lawsuit to block the acquisition as soon as Tuesday.
Bloomberg’s source said the regulators will argue that the merger will “hamper innovation and slow the pace of drug development.”
The lawsuit would mark the first time in more than 10 years that the FTC has attempted to outright block a pharmaceutical deal, according to the report.
Amgen told Proactive in a statement it is not aware of any decision made by the commission. "We will provide any appropriate updates when we have more information," Amgen said.
The FTC declined Bloomberg's request for comment.
Amgen announced its all-cash acquisition of Ireland-based Horizon for $116.50 per share in December 2022.
The move came as part of Amgen’s aim to strengthen its drug portfolio ahead of several patent expirations for key treatments over the next decade, with the acquisition of Horizon set to contribute two fast-growing drugs, thyroid eye disease treatment Tepezza and gout medication Krystexxa to its line-up.
Horizon shared had tumbled 17.9% to US$92.11 just after the opening bell in New York, while Amgen had slipped 0.9% at US$231.46.
-- Updated with Amgen's statement --
Contact the author at emily.jarvie@proactiveinvestors.com
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