FTC’s Challenge Of Amgen/Horizon Merger Seeks To Fight Pharma Rebating Practices
Lawsuit Does Not Cite Overlap In Companies’ Portfolios
The US Federal Trade Commission is taking a stand against rebating and bundling practices pharma companies use in negotiations with payers as it seeks to block Amgen’s $28bn acquisition of Horizon.
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Medicare price renegotiation and the FTC’s scrutiny of biopharma acquisitions have suppressed sector stock prices. But the sector may not be the actual target.
Amgen agreed not to include Horizon’s Tepezza and Krystexxa in rebate bundling deals with payers, among other terms, so the FTC would clear the companies’ merger, giving pharma firms a new consideration in future dealmaking.
Amgen asked the FTC to accept its pledge not to bundle Horizon’s Tepezza or Krystexxa, while an FTC administrative law judge urged a settlement between the agency and Amgen.