The Federal Trade Commission has requested more information from Pfizer and Seagen relating to the $43 billion merger proposal, a Seattle biotech Securities and Exchange Commission file revealed. Seagen projects the acquisition to be finalized by late 2023 or early 2024, according to a Fierce Pharma report.
"Second requests require both parties to provide additional information to assess the legality of the transaction, though they can be broad in nature, investigating issues such as existing or potential competition, drug pricing or off-label usage of certain products," SVB Securities wrote in a note to investors, according to Fierce Pharma.
“While the FTC's attempt to block the Amgen-Horizon deal — it's first such move against a biopharma company in more than a decade — raises concern for Pfizer's buyout of Seagen, some analysts believe there is little overlap between the companies that would justify a similar lawsuit,” the Fierce Pharma report said.
It’s the second round of documentation the antitrust regulator has requested form the companies. Second requests are requested by the FTC for 25% of merger and acquisition deals, while only 5% to 10% of transactions are challenged by the regulator, potentially extending the review process by six to nine months, Fierce Pharma reported.
The request comes after FTC’s lawsuit against Amgen’s proposed acquisition of Horizon for $27.8 billion. The case will make advancements in September, the report said. It also comes a month after Pfizer withdrew from its plan to buy out Seagen, extending the FTC’s review by 30 days.
Pfizer projects the products acquired by Seagen to generate $10 billion in additional annual revenues by 2030. Following Pfizer’s recent Biohaven and Johnson & Johnson deals, the merger would be the largest of its kind since AbbVie acquired Allergan for $63 billion in June 2019, Fierce Pharma reported.
