Amgen’s acquisition of Horizon could have ‘downstream effects’ in rheumatology
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The recent acquisition of Horizon Therapeutics by Amgen continues a trend in medical finance that may have implications for both rheumatologists and their patients.
Amgen acquired Horizon Therapeutics via a newly formed private limited company called Pillartree Limited. The agreement was made in December 2022 for $28.5 billion, according to a press release from Amgen. The acquisition will move forward based on a timeline sanctioned by the Irish High Court.
Antitrust clearances will also be required in Austria, Germany and the United States, while the receipt of required foreign investment clearances must be made in Denmark, France, Germany and Italy.
In its press release, the company suggested that the acquisition of Horizon will strengthen the portfolio for patients with rare diseases.
However, Madelaine A. Feldman, MD, FACR, vice president of advocacy and government affairs at the Coalition of State Rheumatology Organizations, and founder and past president of the Rheumatology Alliance of Louisiana, offered another perspective.
“Amgen is losing exclusivity on Enbrel [etanercept], Prolia [denosumab] and Otezla [apremilast] over the next few years,” she told Healio. “This will cost them.
“The Horizon purchase could fill in some of those losses with Tepezza [teprotumumab-trbw], which is a treatment for thyroid eye disease, the gout drug Krystexxa [pegloticase], and Uplizna [inebilizumab-cdon] for neuromyelitis optica spectrum disorder,” she added
Feldman addressed the association between finance and medicine that may be at the heart of these recent transactions.
“Mergers and acquisitions seem to be the way to make up for manufacturer revenue losses related to the loss of exclusivity for their branded medications,” Feldman said. “This will be Amgen's second purchase over the last year, having bought Chemocentryx less than 6 months ago, which added avoacopan [Tavneos], used to treat ANCA plus vasculitis, to their line-up.”
It is important to understand that rheumatologists and their patients may be impacted by such an acquisition, according to Feldman.
“One downstream effect that no one thinks about is will this acquisition affect the donations that Horizon gives to foundations that rheumatologists rely on to help patients with affordability,” she said.
A companion point pertains to the physicians and scientists working for Horizon.
“It is hard to know what will happen with the employees of Horizon,” Feldman said. “Often, belt-tightening results in downsizing of the workforce of the purchased company.”
Reference:
Amgen press release: https://www.prnewswire.com/news-releases/rule-2-7-announcement-amgen-inc-to-acquire-horizon-therapeutics-plc-301700097.html.
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