The US Federal Trade Commission (FTC) on Tuesday filed a lawsuit on Tuesday seeking to block Amgen Inc.'s proposed $27.8 billion acquisition of Horizon Therapeutics Plc. The US trade regulator has alleged&nbsp;that the merger would create a monopoly for medications treating thyroid eye disease and chronic refractory gout, hampering competition and potentially leading to higher drug prices.

According to the sealed complaint filed in Illinois Federal Court, the acquisition would allow Amgen to further solidify Horizon's dominant position in the market. The FTC's complaint has&nbsp;sought&nbsp;an injunction to halt the merger until the commission could&nbsp;proceed with an in-house trial to determine whether the proposed deal violates&nbsp;antitrust law.

While opposing Amgen's billion-dollar deal, FTC's Competition Bureau Director&nbsp;Holly Vedova&nbsp;has emphasised the need for preventing pharmaceutical companies&nbsp;from consolidating&nbsp;monopolies.&nbsp;“Rampant consolidation in the pharmaceutical industry has given powerful companies a pass to exorbitantly hike prescription drug prices, deny patients access to more affordable generics, and hamstring innovation in life-saving markets,” Bloomberg quoted Vedova as saying.&nbsp;

Amgen, however, has countered FTC's allegations, stating that the claim of a potential 'multiproduct discount' was speculative and did not align with the competitive dynamics of the real world, a Bloomberg report noted. Horizon Therapeutics has also issued a statement, denying claims made&nbsp;by the US trade regulator.&nbsp;

'Multiproduct discount' is a monopolistic practice&nbsp;often frowned upon by the market. While it gives multiple products in one bundle at cheaper rates, this practice often&nbsp;forces smaller competitors to exit the market in the long run.&nbsp;

FTC vs. Big Pharma&nbsp;

This lawsuit marks the first time since 2009 that the FTC has taken legal action to prevent a pharmaceutical merger. In the past, the agency typically allowed mergers to proceed on the condition that the companies divested any overlapping treatments. However, under the leadership of Lina Khan, the US trade regulator has adopted a more stringent approach, challenging high-profile deals such as Microsoft Corp.'s proposed acquisition of Activision Blizzard Inc. and Intercontinental Exchange Inc.'s purchase of Black Knight Inc, a mortgage software rival.

Amgen, a prominent player in the pharmaceutical industry with 27 approved drugs, including popular treatments for rheumatoid arthritis and psoriasis, now faces scrutiny over its acquisition strategy. On the other hand, Horizon Therapeutics distributes 11 drug products in the US, including Tepezza, which is used to treat thyroid eye disease, and Krystexxa, a medication&nbsp;for chronic refractory gout. These medications currently enjoy a lack of competition in the market, generating significant revenue for Horizon in 2022 — $1.97 billion for Tepezza and $716 million for Krystexxa, as reported in company filings.

Under the Biden administration, the regulator&nbsp;has closely examined mergers, conduct, and pricing practices within the hospital, physician practice, pharmaceutical, and medical device sectors. Its scrutiny has resulted in five hospitals abandoning their merger plans&nbsp;in the past two years. Additionally, the FTC has launched investigations into pharmaceutical benefit managers like Cigna Group's Express Scripts and CVS Health Corp.'s Caremark to explore their potential role in driving up drug prices.

(With agency inputs)&nbsp;

The US Federal Trade Commission (FTC) on Tuesday filed a lawsuit on Tuesday seeking to block Amgen Inc.'s proposed $27.8 billion acquisition of Horizon Therapeutics Plc.

The US Federal Trade Commission (FTC) on Tuesday filed a lawsuit on Tuesday seeking to block Amgen Inc.'s proposed $27.8 billion acquisition of Horizon Therapeutics Plc. The US trade regulator has alleged that the merger would create a monopoly for medications treating thyroid eye disease and chronic refractory gout, hampering competition and potentially leading to higher drug prices. According to the sealed complaint filed in Illinois Federal Court, the acquisition would allow Amgen to further solidify Horizon's dominant position in the market. The FTC's complaint has sought an injunction to halt the merger until the commission could proceed with an in-house trial to determine whether the proposed deal violates antitrust law. While opposing Amgen's billion-dollar deal, FTC's Competition Bureau Director Holly Vedova has emphasised the need for preventing pharmaceutical companies from consolidating monopolies. “Rampant consolidation in the pharmaceutical industry has given powerful companies a pass to exorbitantly hike prescription drug prices, deny patients access to more affordable generics, and hamstring innovation in life-saving markets,” Bloomberg quoted Vedova as saying. Amgen, however, has countered FTC's allegations, stating that the claim of a potential 'multiproduct discount' was speculative and did not align with the competitive dynamics of the real world, a Bloomberg report noted. Horizon Therapeutics has also issued a statement, denying claims made by the US trade regulator. 'Multiproduct discount' is a monopolistic practice often frowned upon by the market. While it gives multiple products in one bundle at cheaper rates, this practice often forces smaller competitors to exit the market in the long run. FTC vs. Big Pharma This lawsuit marks the first time since 2009 that the FTC has taken legal action to prevent a pharmaceutical merger. In the past, the agency typically allowed mergers to proceed on the condition that the companies divested any overlapping treatments. However, under the leadership of Lina Khan, the US trade regulator has adopted a more stringent approach, challenging high-profile deals such as Microsoft Corp.'s proposed acquisition of Activision Blizzard Inc. and Intercontinental Exchange Inc.'s purchase of Black Knight Inc, a mortgage software rival. Amgen, a prominent player in the pharmaceutical industry with 27 approved drugs, including popular treatments for rheumatoid arthritis and psoriasis, now faces scrutiny over its acquisition strategy. On the other hand, Horizon Therapeutics distributes 11 drug products in the US, including Tepezza, which is used to treat thyroid eye disease, and Krystexxa, a medication for chronic refractory gout. These medications currently enjoy a lack of competition in the market, generating significant revenue for Horizon in 2022 — $1.97 billion for Tepezza and $716 million for Krystexxa, as reported in company filings. Under the Biden administration, the regulator has closely examined mergers, conduct, and pricing practices within the hospital, physician practice, pharmaceutical, and medical device sectors. Its scrutiny has resulted in five hospitals abandoning their merger plans in the past two years. Additionally, the FTC has launched investigations into pharmaceutical benefit managers like Cigna Group's Express Scripts and CVS Health Corp.'s Caremark to explore their potential role in driving up drug prices. (With agency inputs)

US trade regulator wants to block Amgen's $28 billion deal on hold. Here's why

The experimental obesity drug of Amgen Inc showed trends of promising durability in its initial trial, making way for a large mid-stage study in the next years, said company officials on Saturday, before the data presentation.&nbsp;In the Phase I trial, it was discovered that weight loss is being maintained by patients for 70 days after they have been administered the injected highest tested dose of the drug which is known as AMG133. 
 
The shares of Amgen gained about 5% after the company on November 7 said that in the trial treatment of 12 weeks in which the highest monthly dose of AMG133 was administered, it was observed that there was a mean weight loss of 14.5%.

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After 150 days of the last dose, there was a drop in the maintained weight to 11.2% below the original weight when the trial started, as per the findings discussed in the meeting of the World Congress of Insulin Resistance, Diabetes and Cardiovascular Disease held in Los Angeles. 
 
Amgen stated that the patients who were treated with AMG133 did suffer side effects which include vomiting and nausea, however, in most cases the symptoms were mild and the issues resolved in a couple of days after taking the first dose. 
 
It was estimated by the US Centers for Disease Control and Prevention that more than 40% of the population in the US is obese, which annually costs nearly $173 billion. This is a primary reason for type 2 diabetes, a few cancers, heart disease and complications in health like severe COVID-19. 
 
Amgen's head of cardiovascular metabolic discovery explained that the company had developed the drug to identify genetic signals which are related to body weight and lower fat mass, as well as healthy metabolic profiles.

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"Genetics clearly showed in multiple large populations that decreased activity genetically of the GIP receptor gene was associated with lower BMI (body mass index)," he added. 
 
The biotech now plans to start AMG133's mid-stage study early next year in which a wide range of patients will be enrolled, which will include people suffering from additional health conditions like diabetes.

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The experimental obesity drug of Amgen Inc showed trends of promising durability in its initial trial, making way for a large mid-stage study in the next years, said company officials on Saturday, before the data presentation.

The experimental obesity drug of Amgen Inc showed trends of promising durability in its initial trial, making way for a large mid-stage study in the next years, said company officials on Saturday, before the data presentation. In the Phase I trial, it was discovered that weight loss is being maintained by patients for 70 days after they have been administered the injected highest tested dose of the drug which is known as AMG133. The shares of Amgen gained about 5% after the company on November 7 said that in the trial treatment of 12 weeks in which the highest monthly dose of AMG133 was administered, it was observed that there was a mean weight loss of 14.5%. ALSO READ| ‘Airborne baby killer’: Pollution in China kills 64,000 babies in womb every year After 150 days of the last dose, there was a drop in the maintained weight to 11.2% below the original weight when the trial started, as per the findings discussed in the meeting of the World Congress of Insulin Resistance, Diabetes and Cardiovascular Disease held in Los Angeles. Amgen stated that the patients who were treated with AMG133 did suffer side effects which include vomiting and nausea, however, in most cases the symptoms were mild and the issues resolved in a couple of days after taking the first dose. It was estimated by the US Centers for Disease Control and Prevention that more than 40% of the population in the US is obese, which annually costs nearly $173 billion. This is a primary reason for type 2 diabetes, a few cancers, heart disease and complications in health like severe COVID-19. Amgen's head of cardiovascular metabolic discovery explained that the company had developed the drug to identify genetic signals which are related to body weight and lower fat mass, as well as healthy metabolic profiles. ALSO READ| Playing piano may help deal with mental health issues like depression: Study "Genetics clearly showed in multiple large populations that decreased activity genetically of the GIP receptor gene was associated with lower BMI (body mass index)," he added. The biotech now plans to start AMG133's mid-stage study early next year in which a wide range of patients will be enrolled, which will include people suffering from additional health conditions like diabetes.

Experimental obesity drug promising, demonstrating durability, claims pharma firm

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