![]() One paragraph makes the merging parties' case for them:Īmgen’s proposed acquisition of Horizon is especially alarming given Horizon’s ownership of a number of orphan drugs, which often garner high price tags due to the willingness of insurance companies to cover their costs. Patent games and price hiking aren't cured by blocking mergers. Maybe drug prices aren't fair (I don't know). After acquiring Enbrel’s rights in 2002, Amgen has enacted 27 price hikes on the drug, raising its initial price of $996 per month in 2002 to $5,556 per month in 2020 – a 457% increase. Both Amgen and Horizon have engaged in brazen price increases on drugs that face little or no competition, while Amgen has abused the patent process, creating patent thickets to “evergreen” their products, prevent generic competition, and maintain market dominance.27 Amgen’s most egregious price hikes have involved its most profitable drug, Enbrel. ![]() ![]() This acquisition presents numerous antitrust and price gouging concerns. Here is an example paragraph:Īmgen’s $28.7 billion proposed acquisition of Horizon Therapeutics would be among the largest healthcare deals of recent years. Many of the issues addressed are perhaps a problem but they aren't great grounds to stop a merger. In my opinion, the Warren letter doesn't contain many solid arguments. I wrote about the Opiant deal as well, whose closing is imminent and includes an interesting CVR. The letter warned about big pharma deals in general but specifically zeroed in on this deal and the acquisition of Opiant Pharmaceuticals, Inc. It followed a letter by Senator Warren to FTC head Lina Khan. The 2nd request come at the end of January 2023. The deal is supposed to close somewhere in H1 2023. If it breaks, the stock will likely fall to somewhere between $80-$100. With HZNP trading at $110.54, there is 5.4% upside to the closing price. The acquirer obtained a bridge credit agreement, but the company has also started a process to issue a more permanent financing solution through the issuance of bonds. Shareholders have voted for the agreement. That's interesting because Horizon Therapeutics ended up selling itself at a fairly inopportune time if you look at the price level of the iShares Biotechnology ETF ( IBB) and Horizon's share price development (roughly similar until the sale): I think this merger may indirectly result from not really liking that proposition. The initial unsolicited proposal came from Sanofi. There were several other bidders interested in the asset that have looked at it during the time the company was shopped, including Johnson & Johnson ( JNJ ) and Sanofi ( SNY ). Amgen is a $125 billion market cap biotech, and Horizon's market cap stands at $25 billion, making this a large deal. ( AMGN) is acquiring Horizon Therapeutics Public Limited Company ( NASDAQ: HZNP) at $116.50 per share.
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