States Sue Amgen Over Monopoly

The states of California, New York, Illinois, Minnesota, Washington, and Wisconsin have joined a lawsuit initiated by the Federal Trade Commission (FTC) to block Amgen's $27.8 billion acquisition of Horizon Therapeutics. The states argue that the merger could create monopolies in prescription drug markets, potentially harming consumers. The FTC previously filed the suit, citing concerns about Amgen gaining "monopoly positions" in treating thyroid eye disease and chronic refractory gout. The states' involvement strengthens the case against the acquisition, emphasizing the potential dangers to innovation, research, and patients needing life-saving drugs. Amgen expressed disappointment with the FTC's decision and believed that the deal posed no legitimate competitive issues. The acquisition is significant because the FTC has traditionally allowed deals with therapeutic overlaps, requiring only the divestment of one drug. Amgen's motivation for the acquisition was to secure protection from drug pricing provisions under the Inflation Reduction Act, which primarily targets drugs widely used by Medicare.