Yesterday the Federal Trade Commission (FTC) announced the decision to settle its Amgen-Horizon merger challenge. The settlement will give the Commission the relief it needs to protect competition, while allowing rare disease patients to enjoy the deal's pro-competitive benefits without delay.
BIO applauds the FTC's decision, which is in the best interest of not just U.S. patients, but patients around the world who rely on innovative new drugs to live longer and healthier lives.
Shortly before the FTC's announcement, BIO -- along with Illinois BIO, Illinois Manufacturers' Association, and Chicagoland Chamber of Commerce -- filed a "friend of the court" brief warning that what appeared to be an abrupt shift in the FTC's approach to biotech merger enforcement would potentially endanger the drug development pipeline.
As the brief explained, acquisition of small innovators by larger, better established pharmaceutical companies is an important component of a dynamic innovation ecosystem. Smaller, nimbler companies, with a unique "breakthrough" culture, may not be well positioned to manage costly clinical trials, FDA approval, and global distribution. Acquisition by a larger company with all of these capabilities is an important potential solution. Consequently, FTC merger enforcement that views such transactions as inherently suspect is not in the public interest.
Statement from John Delacourt, Deputy General Counsel, BIO:
"BIO commends the Commission for settling litigation that disincentivized investment in treatments and cures for patients. Now BIO encourages FTC to efficiently and effectively support commercialization of these therapeutics. We believe the government can protect competition while enhancing the value of biotech M&A activity.”
