Ex-Celgene shareholders sue Bristol Myers Squibb for $6.4B in lost CVR cash, claiming ‘blatant misconduct’
“It wasn’t so much a question of whether Bristol Myers Squibb would be taken to court by former Celgene shareholders. It was more a question of when. The answer came Thursday in U.S. District Court-Southern New York with the filing of Case 1:21-cv-04897. In it, Bristol is of “blatant misconduct”—allegedly delaying development of a cancer drug to avoid making a $6.4 billion milestone payment tied to its approval,” Report Kevin Dunleavy in Fierce Pharma.
“According to a Contingent Value Rights (CVR) agreement tied to BMS’s $74 billion purchase of Celgene in November 2019, the New York pharmaceutical giant would have owed former Celgene shareholders $6.4 billion if it had won FDA approval for three new drugs at the center of that deal, each with a particular deadline.”