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Amgen (NASDAQ:AMGN) said that the Federal Trade Commission’s lawsuit to challenge its planned purchase of Horizon Therapeutics (NASDAQ:HZNP) “defies logic.”
The “plaintiffs come nowhere close to meeting their burden to show a likelihood of success,” Amgen’s lawyers wrote in a response brief to the FTC’s lawsuit on Tuesday. “Their case defies logic and precedent in a number of ways.
The legal filing comes as the antitrust regulator is set to square off with Amgen (AMGN) in a Chicago courtroom on Sept. 11. While there has been speculation about a potential settlement and the two sides have confirmed they’ve had discussions, the trial is set to begin in a few weeks.
Amgen (AMGN) contends in its brief that the FTC’s claim that the biopharma company may try to bundle rebates on its products in a deal with Horizon (HZNP) is not the case.
The “plaintiff’s case—premised on the contention that Amgen might one day offer bundled rebates on one or more of its products to somehow exclude potential competitors to either of two Horizon products—is far too removed from reality and unmoored from decades of legal precedent to warrant such extraordinary relief,” Amgen’s lawyers wrote.
Amgen said it isn’t going to bundle any of its products “for any reason or any time with Tepezza or Krystexxa.
“Simply put, there is no evidence to support Plaintiffs’ speculative theory that Amgen would engage in novel cross-benefit bundling to compete with products that may never come to market,” Amgen’s lawyers wrote in the brief.
Amgen (AMGN) CEO Robert Bradway said earlier this month that the FTC has ignored the commitments that the company has made to address the regulator’s concerns around the deal. Bradway said the company is working on integration plans with Horizon (HZNP) so the companies can combine by mid-December, when he expects the deal to close.
While there has been talk that the FTC staff may be open to discussions with Amgen (AMGN), the issue is that the staff can’t talk with the commissioners because the commissioners are overseeing an internal administrative proceeding, where they “sorta stand as judge and jury,” to attempt to block the Horizon deal, CNBC’s David Faber said on the network on Wednesday There is a belief at Amgen that whatever staff may offer can’t be followed through on because they aren’t talking to the commissioners.
Amgen (AMGN) said in June it would not close the deal before Oct. 31 or the second business day after the court rules on the FTC’s request to block the deal. U.S. District Judge John Kness set a hearing for Sept. 11 on the FTC’s efforts to block the combination.
Image and article originally from seekingalpha.com. Read the original article here.