FTC Requests Further Probe into Amgen's $27.8 Billion Acquisition of Horizon Therapeutics.
Horizon Therapeutics (HZNP) is a pharmaceutical company that develops and markets treatments for rare diseases. Founded in 2005, the company has grown to become a leading global provider of rare disease treatments, with a portfolio of over 20 medicines and therapies. HZNP's products are used to treat various conditions, including respiratory and metabolic disorders, arthritis, and ophthalmic diseases. They are sold in over 40 countries and are particularly popular in the US and Europe.
In 2019, HZNP acquired Raptor Pharmaceuticals for $800 million, adding four approved therapies and a pipeline of development programs to its portfolio. HZNP is known for its medication Tepezza, which treats thyroid eye conditions, as well as Uplizna, which treats an inflammatory condition of the spinal cord and optic nerves, and Krystexxa, a medication for persistent gout.
HZNP has a strong financial position, with a strong balance sheet, no debt, and strong cash flow, making it well-positioned for future growth. The company is also investing in research and development to bring new treatments to those suffering from rare diseases. HZNP's stock price has been steadily increasing since it was first listed on the NASDAQ in 2014 and has gained over 300%, making it a top performer in the healthcare sector.
Sen. Warren Pours Cold Water on Amagen Purchase of HZNP
On December 10th, 2022, Amgen (AMGN) and Horizon reached a deal for a price of $27.8 billion, or $116.50 per share in cash ending the bidding process by several pharmaceutical giants. This was the biggest pharma merger deal of 2022. It's also Amgen's most lucrative acquisition to date because Tepezza, a top-selling medication for thyroid eye disease, is now available to them.
However, HZNP faces several challenges in its business, including increased competition and regulatory scrutiny. The company has also faced some criticism over its pricing strategies, which some argue to be too high. Additionally, the company is facing pressure from customers, who are becoming increasingly unwilling to pay for high-priced drugs. In fact, the recent deal with Amgen has been scrutinized because of this.
The Federal Trade Commission has requested a more in-depth investigation into the proposed acquisition of Horizon Therapeutics by Amgen, due to concerns raised by Sen. Elizabeth Warren and potential antitrust issues.
The senator has expressed concerns to the Federal Trade Commission (FTC) regarding Amgen's plans to buy Horizon Therapeutics. Warren believes that given Amgen's history of anti-competitive behavior, this purchase could increase the cost of life-saving drugs and prevent cheaper alternatives from entering the market. She also mentions that the FTC should consider Indivior's record of anti-competitive behavior in assessing the deal. Amgen has not yet commented on the senators' letter. Warren has previously criticized M&A in the US.
AI Trading
Amagen wasn't the only one to recognize HZNP's value. Our artificial intelligence recognized the company's value and published buy signals at various time horizons. Subscribers who bought HZNP stock based on our AI forecast for the quarterly time horizon on November 1st, 2022 would have generated a significant profit of 73.78%.
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Below is our stock pick from our quarterly stock prediction announcing HZNP as a buy on Friday, November 1st, 2022 to our subscribers getting exclusive artificial intelligence-based market insights. The Signal Confidence (SC) in this stock forecast is 74%. The AI system computes the Signal Confidence (SC), which is expressed as a percentage out of 100%, based on the historical accuracy of each previous financial asset prediction, as well as current market factors relevant to stock pricing.
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Stock Ticker | Open: Nov 1st, 2022 | Close: Jan 30, 2023 | ROI% |
Horizon Therapeutics (HZNP) | $62.58 | $110.05 | 75.85% |
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Sources: 1. Horizon Therapeutics Investor Relations, "Horizon Therapeutics plc Confirms Preliminary Discussions Regarding Potential Offer" (2022)
2. UNITED STATES SECURITIES AND EXCHANGE COMMISSION, (FORM 8-K) (2022)
3. Reuters, "U.S. Senator Warren 'particularly concerned' about Amgen, Indivior deals" (2023)
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