Amgen: Regardless of FTC Negotiations and the Ultimate Fate of the Horizon Deal, No FVE Change

We’re not making any changes to our $255 fair value estimate or wide moat rating for Amgen following the news that the U.S. Federal Trade Commission seeks to block Amgen’s pending acquisition of Horizon Therapeutics. Since the announced pending acquisition of Horizon in December, we have seen the acquisition as neutral to Amgen’s valuation, bringing valuable rare disease and immunology drugs but at a steep $28 billion price tag. We expect negotiations to continue over the next few months, as the FTC could be looking for Amgen to make broader commitments regarding future bundling practices and Horizon’s portfolio and pipeline.