Shares of Horizon Therapeutics Gain After FTC Pauses Legal Challenge to Amgen Acquisition
Horizon Therapeutics PLC (HZNP) saw its shares rise more than 5% in premarket trading on Monday, following the Federal Trade Commission's (FTC) decision to temporarily halt its legal challenge to Amgen Inc.'s (AMGN) acquisition of the biotech company for $27.8 billion.
The FTC had filed a lawsuit in May to block the acquisition, expressing concerns that the deal would strengthen Amgen's monopoly in two critical medical conditions treated by Horizon. However, an order from the FTC's internal court on August 23 stated that the matter will be temporarily withdrawn from adjudication until September 18, "for the purpose of considering the proper resolution of this matter."
According to analysts at Oppenheimer, the FTC's move suggests a potential settlement with Amgen that could increase the likelihood of the Horizon acquisition proceeding. However, despite this positive development, Horizon shares have still declined by 6.3% year-to-date.
In contrast, Amgen shares saw a modest increase of 0.5% in premarket trading on Monday and have experienced a decline of 2.4% so far this year. It is important to note that the S&P 500 index has gained 14.8% during the same period.
As the resolution of this matter remains uncertain, both shareholders and industry experts will closely monitor any further updates on the FTC's stance and its implication for the Amgen-Horizon acquisition.
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