Shares of Horizon Therapeutics (NASDAQ:HZNP) fell 16% in yesterday’s after-trade and another 18% at the time of writing. The decline might be attributed to rumors that the U.S. Federal Trade Commission (FTC) is preparing to block Amgen’s (NASDAQ:AMGN) $27.8 billion deal to buy Horizon.
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The regulator is expected to file a lawsuit later today stating that the deal might impact competition in drug development, Bloomberg reported.
The acquisition, announced in December 2022, was expected to close in the first half of this year. Through this buyout, Amgen aimed to boost its innovative therapeutics portfolio by adding Horizon’s expertise in rare disease drug development.
It is worth mentioning that the deal was criticized from the start. In January, the FTC sent a second request to both parties, asking them to provide further information and documentation about the transaction. At the same time, Senator Elizabeth Warren sent a letter to the FTC stating her concerns about the merger.
Is Amgen a Buy, Sell, or Hold?
Wall Street is currently sidelined on Amgen stock, with a Hold consensus rating based on five Buys, five Holds, and two Sells. The average AMGN stock price target of $259 implies a possible upside of 10.9% from current levels. Shares have declined 10% year-to-date.
