Large companies often turn to acquisitions to jump-start revenue and earnings growth or to speed up research and development, among other reasons. However, these moves aren't always successful, so it's essential not to invest in a stock simply because of a high-profile buyout.

With that said, let's look at the case of biotech giant (NASDAQ: AMGN), which just closed a blockbuster acquisition of Horizon Therapeutics. The transaction didn't go as smoothly as both companies might have hoped. But now that it's in the books, should you add Amgen's shares to your portfolio?

Amgen dished out about $28 billion in cash, financed with debt, to acquire Horizon Therapeutics. The deal initially ran into some regulatory problems when the U.S. Federal Trade Commission (FTC) raised antitrust concerns. Fortunately, the FTC came to an agreement with Amgen and Horizon, which allowed the deal to go through. But why did Amgen decide to spend so much on this transaction?

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Source Fool.com