The U.S. Federal Trade Commission (FTC) has approved drug manufacturer Amgen Inc (NASDAQ:AMGN) to proceed with its $27.8 billion acquisition of Horizon Therapeutics Plc (NASDAQ:HZNP). 

This decision reverses the FTC's earlier objections to the deal. In May, the FTC filed a lawsuit to block the transaction but later suspended its opposition in late August. 

This suspension allowed the FTC to explore the possibility of settling the case.

Amgen's move to acquire Horizon in December 2022 aimed to gain access to Horizon's rare disease assets, including the thyroid eye disease therapy Tepezza.

The FTC's primary concern regarding the deal was the potential for Amgen to use its high-selling drugs as leverage to exert pressure on insurance companies and pharmacy benefit managers. The objective was to secure favorable terms for 

Horizon's two crucial products are Tepezza, a rapidly growing treatment for thyroid eye disease, and Krystexxa, a gout medication.

Under the terms of the settlement, Amgen is prohibited from bundling any of its products with Tepezza or Krystexxa. Additionally, Amgen cannot employ product rebates or contract terms to exclude or disadvantage any product that would compete with these drugs.

In an official statement, the FTC noted that industry consolidation had given pharmaceutical companies the power to engage in exclusionary practices, which could lead to price increases for essential medications. 

Lina Khan, the chair of the FTC, expressed concerns about the bundling and exclusionary rebating practices in this case, emphasizing the potential impact on Americans' access to affordable drugs.

Price Action: AMGN shares are up 0.48% at $257.67, and HZNP stock is up 2.59% at $115.62 on the last check Friday.