HZNP Stock Crashes On Reports The FTC Could Block Its Takeover By Amgen
The Federal Trade Commission could block Amgen's takeover of Horizon, causing Horizon's stock to crash.
The news that the Federal Trade Commission might block Amgen (AMGN's) acquisition of Horizon Therapeutics HZNP reverberated through the biotech sector on Tuesday. HZNP's stock crash was the catalyst.
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Horizon shares fell 17.2% in premarket trading today, near 93. This is well below the $116.50 Amgen agreed to pay per share to buy Horizon. Shares of Seagen (SGEN), Prometheus (RXDX), and other recent acquisitions have fallen by 5.3% and 2.2%, respectively.
In a client note, SVB Securities analyst David Risinger stated that "if the FTC sues, we will need to know the basis of the lawsuit since the two companies don't sell competing products" (and this action would have a negative impact on perceptions about biopharma mergers).
Jessica Akopyan, Amgen's spokeswoman, says that the company has not been informed of any FTC decision.
In an email sent to Investor's Business Daily, she stated that "we will provide any updates as soon as we have more information."
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