HZNP - Horizon Therapeutics tumbles amid reports FTC preparing suit to block Amgen deal (update)
2023-05-15 20:46:12 ET
Update 8:45pm : Adds Bloomberg reporting on FTC expected to sue to block deal.
Horizon Therapeutics plunged 16% in after hours trading on a report that the Federal Trade Commission is preparing to file a lawsuit to block the company's $28 billion sale to Amgen ( NASDAQ: AMGN ).
The FTC had a closed door meeting on Friday where the transaction was discussed and the commissioner's are expected to vote on the deal this week, according to a Capitol Forum report , that cited sources familiar with the matter.
Separately, Bloomberg reported that the FTC is expected to file a lawsuit to block the deal, according to a person familiar.
An Amgen spokesperson told Seeking Alpha in an email that the company is not aware of any decision made by the Commission. The biotech firm will provide "any appropriate updates when we have more information." Horizon ( NASDAQ: HZNP ) didn't immediately respond to Seeking Alpha email request for comment after normal business hours.
The report come as M&A investors on Friday were concerned that a closed door FTC meeting may been potentially about Horizon's ( HZNP ) planned sale to Amgen ( AMGN ).
Investors are awaiting for May 22 Irish court hearing for the deal well as FTC approval for the deal. Horizon ( HZNP ) and Amgen ( AMGN ) in late January confirmed they received a second request from the FTC.
Amgen ( AMGN ) agreed to acquire Horizon Therapeutics ( HZNP ) for $116.50 a share in cash in December, valuing the Ireland-based biotech at nearly $27.8 billion.
Earlier this month a UBS analyst wrote that Horizon Therapeutics ( HZNP ) standalone value is in the $65-$70 a share range, though the deal was likely to gain regulatory approval.
More on Horizon/Amgen
- Amgen: Questioning The Horizon Therapeutics Acquisition
- Horizon Therapeutics: Attractive 7.16% Upside To Amgen Deal
- Amgen's acquisition of Horizon Therapeutics on track to close in 1H - report
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Horizon Therapeutics tumbles amid reports FTC preparing suit to block Amgen deal (update)