FTC's Amgen Activism Will Spare Smaller Biotechs
The FTC's decision to block Amgen's proposed acquisition of Horizon Pharma is a blow to the biotech sector, which has been driving stock prices higher.
The Federal Trade Commission’s attempt to block Amgen’s acquisition of Horizon Therapeutics has dampened the recent biotech stock rally. Photo: Eric Lee, The Wall Street Journal
Biotech stocks have been on fire in the past few weeks. They are recovering from the terrible performance the sector had over the last two year. The euphoria stemmed from the belief that pharmaceutical companies would continue to pay massive premiums for biotech firms because their blockbuster drugs had gone off patent.
This rally is being dampened by the Federal Trade Commission's efforts to stop Amgen's acquisition Horizon Therapeutics. The SPDR S&P Biotech ETF was down 3.4% Tuesday morning. Horizon fell 18%. Seagen, which sold itself to Pfizer in March for $43 billion, fell 6%.