The Federal Trade Commission pulled back one of its efforts to block Amgen's $28 billion acquisition of Horizon Therapeutics, according to a document released late Friday that sent HZNP stock flying on Monday.
In premarket trading on today's stock market, Horizon stock jumped 5.1% near 112.10. Amgen shares dipped a fraction.
According to an FTC document, the regulator withdrew its request for an in-house trial related to its challenge of Amgen's takeover of Horizon. Last month, a judge urged the antitrust regulator and the companies to discuss a settlement.
HZNP Stock: A Hearing Ahead
There's still an evidentiary hearing on deck in three weeks.
"If a resolution of this matter can be achieved, time is of the essence to avoid unnecessary expenditures of resources related to litigation," the FTC's attorneys wrote in their document.
The move is promising for Amgen's plan to buy Horizon. Horizon Therapeutics makes Tepezza and Krystexxa, the only treatments for thyroid eye disease and chronic gout on the market today. The FTC has said it believes Amgen could use its weight to create a strong monopoly for the two products.
HZNP stock has remained under pressure amid the FTC challenge. Shares are now above their 50-day moving average, according to MarketSmith.com. Friday's after-hours move puts Horizon stock closer to a breakout at 113.83 out of a consolidation.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
