The Federal Trade Commission, in coordination with attorneys general from six states, reached a proposed consent order with Amgen Inc. This step comes as an effort to alleviate competitive concerns that would emerge from Amgen's $27.8 billion acquisition of Horizon Therapeutics, according to a Sept. 1 news release.
“Consolidation in the pharmaceutical industry has given companies the power and incentive to engage in exclusionary rebating practices, which can lead to sky-rocketing prices on essential medications,” Director of the FTC’s Bureau of Competition Henry Liu said in the release. “Today’s proposed resolution sends a clear signal that the FTC and its state partners will scrutinize pharmaceutical mergers that enable such practices, and defend patients and competition in this vital marketplace.”
The FTC, along with state attorneys general from California, Illinois, Minnesota, New York, Washington and Wisconsin, will dismiss the related federal court preliminary injunction action as part of this nationwide settlement, the release reported.
This action marks the FTC's first litigated challenge to a pharmaceutical merger in more than a decade. The complaint, filed in May 2023, alleged the acquisition would allow Amgen to potentially eliminate competition for Horizon's drugs Tepezza and Krystexxa, used for treating thyroid eye disease (TED) and chronic refractory gout (CRG), respectively, the release said.
The consent order aims to resolve the charges by prohibiting Amgen from bundling Tepezza and Krystexxa with its own products. The order also puts limitations on Amgen's future acquisitions related to TED or CRG until 2032, requiring prior FTC approval, according to the release.
Furthermore, Amgen is mandated to submit contracts concerning the formulary coverage of these two drugs to a designated monitor within 30 days of finalization, as outlined in the release.
The release highlighted the stipulation that Amgen employees involved in contracting or negotiations related to these drugs must provide an annual written acknowledgment of their understanding and compliance with the consent order. All other compliance measures will remain in place for 15 years following the finalization of the order.
