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FTC Allows Amgen (AMGN) to Proceed With $28B Horizon Buyout
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On Friday, the Federal Trade Commission (“FTC”) allowed biotech giant Amgen (AMGN - Free Report) to complete its $28-billion acquisition of Horizon Therapeutics .
Though the resolution does not include any financial settlement, it does carry many stipulations and restrictions.
Per the mutually-agreed terms, Amgen is prohibited from bundling any of its products with Horizon Therapeutics’ two essential products — Tepezza (approved for treating thyroid eye disease) and Krystexxa (approved for treating chronic refractory gout). Amgen also cannot use any product rebate or contract term to exclude or disadvantage any product that would compete with those drugs.
Amgen will be required to get the FTC’s permission to buy any competitor to the two HZNP drugs till 2032.
In response to the above settlement, Amgen issued a statement that these terms would not impact the company’s business. Following this resolution, the company expects the acquisition to be completed early in fourth-quarter 2023. Shares of both Amgen and Horizon rose on Sep 1 following these announcements.
In the year so far, Horizon Therapeutics’ shares have gained 1.3%, while Amgen’s shares have lost 2.3%. During the same period, the industry has declined 11.9%.
Image Source: Zacks Investment Research
The news comes just days after the FTC, through a Federal Court filing, temporarily suspended its lawsuit to block the Amgen/Horizon Therapeutics deal. The agency took this decision to pause to consider whether it should settle the case or enter into negotiations with Amgen and Horizon.
Last December, Amgen announced that it would acquire Horizon Therapeutics for $116.50 per share in cash or $27.8 billion. However, the FTC filed a lawsuit in May 2023 alleging that the acquisition could help Amgen leverage its position with insurance companies and pharmacy benefit managers to entrench the monopoly positions for Tepezza and Krystexxa if allowed to go through. In its lawsuit, the agency contended that both these drugs face little to no competition in the market and are sold at very high prices to patients.
In the past 30 days, estimates for Annovis Bio’s 2023 loss per share have narrowed from $4.89 to $4.38. During the same period, the loss estimates per share for 2024 have improved from $3.18 to $2.77. Year to date, shares of ANVS have lost 8.1%.
Earnings of Annovis Bio beat estimates in three of the last four quarters while missing the mark on one occasion, witnessing an earnings surprise of 13.40% on average. In the last reported quarter, Annovis’ earnings beat estimates by 6.14%.
In the past 30 days, estimates for Dynavax Technologies’ 2023 earnings per share have risen from 51 cents to 24 cents. During the same period, the earnings estimates per share for 2024 rose from a loss of 24 cents to earnings of 2 cents. Year to date, shares of DVAX have risen 36.7%.
Earnings of Dynavax Technologies beat estimates in two of the trailing four quarters and missed in the remaining two, the average surprise being 25.78%. In the last reported quarter, Dynavax Technologies’ earnings beat estimates by 133.33%.
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FTC Allows Amgen (AMGN) to Proceed With $28B Horizon Buyout
On Friday, the Federal Trade Commission (“FTC”) allowed biotech giant Amgen (AMGN - Free Report) to complete its $28-billion acquisition of Horizon Therapeutics .
Though the resolution does not include any financial settlement, it does carry many stipulations and restrictions.
Per the mutually-agreed terms, Amgen is prohibited from bundling any of its products with Horizon Therapeutics’ two essential products — Tepezza (approved for treating thyroid eye disease) and Krystexxa (approved for treating chronic refractory gout). Amgen also cannot use any product rebate or contract term to exclude or disadvantage any product that would compete with those drugs.
Amgen will be required to get the FTC’s permission to buy any competitor to the two HZNP drugs till 2032.
In response to the above settlement, Amgen issued a statement that these terms would not impact the company’s business. Following this resolution, the company expects the acquisition to be completed early in fourth-quarter 2023. Shares of both Amgen and Horizon rose on Sep 1 following these announcements.
In the year so far, Horizon Therapeutics’ shares have gained 1.3%, while Amgen’s shares have lost 2.3%. During the same period, the industry has declined 11.9%.
Image Source: Zacks Investment Research
The news comes just days after the FTC, through a Federal Court filing, temporarily suspended its lawsuit to block the Amgen/Horizon Therapeutics deal. The agency took this decision to pause to consider whether it should settle the case or enter into negotiations with Amgen and Horizon.
Last December, Amgen announced that it would acquire Horizon Therapeutics for $116.50 per share in cash or $27.8 billion. However, the FTC filed a lawsuit in May 2023 alleging that the acquisition could help Amgen leverage its position with insurance companies and pharmacy benefit managers to entrench the monopoly positions for Tepezza and Krystexxa if allowed to go through. In its lawsuit, the agency contended that both these drugs face little to no competition in the market and are sold at very high prices to patients.
Amgen Inc. Price
Amgen Inc. price | Amgen Inc. Quote
Horizon Therapeutics Public Limited Company Price
Horizon Therapeutics Public Limited Company price | Horizon Therapeutics Public Limited Company Quote
Zacks Rank & Stocks to Consider
Amgen and Horizon Therapeutics currently carry a Zacks Rank #3 (Hold) each.A couple of better-ranked stocks in the overall healthcare sector include Annovis Bio (ANVS - Free Report) and Dynavax Technologies (DVAX - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 30 days, estimates for Annovis Bio’s 2023 loss per share have narrowed from $4.89 to $4.38. During the same period, the loss estimates per share for 2024 have improved from $3.18 to $2.77. Year to date, shares of ANVS have lost 8.1%.
Earnings of Annovis Bio beat estimates in three of the last four quarters while missing the mark on one occasion, witnessing an earnings surprise of 13.40% on average. In the last reported quarter, Annovis’ earnings beat estimates by 6.14%.
In the past 30 days, estimates for Dynavax Technologies’ 2023 earnings per share have risen from 51 cents to 24 cents. During the same period, the earnings estimates per share for 2024 rose from a loss of 24 cents to earnings of 2 cents. Year to date, shares of DVAX have risen 36.7%.
Earnings of Dynavax Technologies beat estimates in two of the trailing four quarters and missed in the remaining two, the average surprise being 25.78%. In the last reported quarter, Dynavax Technologies’ earnings beat estimates by 133.33%.