Replies to post #246969 on Biotech Values

[dewophile]

Sgen is down 5 percent on this (understandably)

[DewDiligence]

Re: HZNP discounts and premiums

As I'm typing, HZNP is trading at a 19% discount to AMGN’s cash buyout price of $116.50, versus a mere 4% discount at yesterday’s close. That HZNP hasn’t sunk to a 25% or greater discount shows that many investors still expect this deal to go through.

HZNP’s most recent “unaffected” share price was the $78.76 close on 11/29/22 (#msg-170671017), so the stock is still trading at a 21% premium to the unaffected share price, versus the 48% premium in AMGN’s buyout price.

[DewDiligence]

HZNP responds to FTC action:

https://www.businesswire.com/news/home/20230516005835/en

“…The FTC’s complaint impacts patients and is rooted in a theory about potential future “bundled” contracts with payors and not competitive overlap concerns. Horizon does not and has no plans to bundle any of its rare disease medicines. …We firmly believe in the benefits of this acquisition and intend to work with the court on a schedule that would allow the transaction to close by mid-December.”

[DewDiligence]

Re: AMGN-HZNP merger

The FTC has suspended its litigation against the merger and is apparently pursuing a settlement with AMGN:

https://www.wsj.com/us-news/law/ftc-pauses-challenge-to-amgens-27-8-billion-deal-for-horizon-therapeutics-d588658d