Why Horizon Therapeutics Stock Is Crashing Today
Shares of Horizon Therapeutics (NASDAQ: HZNP), a rare disease specialist, were down by 17.4% on heavy volume as of 10:14 a.m. ET Tuesday morning. The drugmaker's shares are falling after news broke that the Federal Trade Commission (FTC) plans to seek an injunction in federal court to halt the company's takeover by Amgen (NASDAQ: AMGN).
Per multiple sources, the FTC intends to challenge the Amgen/Horizon merger over antitrust concerns. Last December, Amgen and Horizon agreed to a $27.8 billion buyout agreement, making it the largest business development deal in biopharma in 2022.
If the FTC is indeed successful at nixing this deal, Horizon will have to revert to its organic prospects to create shareholder value in the near term. Although its top line has been growing at a blistering pace of late due to newer products such as the thyroid eye disease treatment Tepezza, Amgen's buyout price did come at a hefty premium relative to Horizon's 2024 outlook.
Source Fool.com
