Bristol-Myers Squibb Co. Pharmaceuticals
Photographer: Daniel Acker / Bloomberg
Photographer: Daniel Acker / Bloomberg
Investors in a sweetening deal created when Bristol-Myers Squibb Co. acquired Celgene Corp. in 2019 they have seen their bet of all or nothing canceled because US regulators did not approve a drug in time.
The contingent value right or The CVR depended on a trio of drug candidates being obtained. In a statement early Friday, Bristol-Myers said the second key deadline, approval for cell therapy for smooth-cell lymphoma, expired Dec. 31 without a decision by the Food and Drug Administration. The final hurdle to the TRC would have been approval on March 31 for a new therapy called ide-cel.
The $ 9-per-share sweetener traded up $ 4.76 per piece in April before falling to 49 cents on Thursday of trading. There are nearly 715 million CVRs pending, which would have resulted in a total payment of $ 6.4 billion if all terms were met, according to data collected by Bloomberg. CVRs will no longer be listed on the New York Stock Exchange.
Bristol-Myers said it continues to work closely with the FDA to support the review of the biological license application for liso-cel and that it still wants to bring therapy to patients.
In a December 23 note, Mizuho analyst Salim Syed highlighted how rare it is for the FDA to approve drugs between the Christmas and New Year holidays. He estimated the value of the CVR litigation was 30 cents to $ 1.40.
– With the assistance of James Ludden