Bristol-Myers Squibb Co. Pharmaceuticals
Photographer: Daniel Acker / Bloomberg
Photographer: Daniel Acker / Bloomberg
Investors in a business sweetener created when Bristol-Myers Squibb Co. acquired Celgene Corp. in 2019 it saw its total bet or nothing deleted, because the US regulators did not approve a drug in time.
Entitlement to the contingent value or CVR depended on a trio of drug candidates to be released. One Earlier Friday, Bristol-Myers said the second key deadline – approval for lyso-lymphoma cell therapy – expired on December 31 without a decision by the Food and Drug Administration. The final obstacle to CVR would have been approval by March 31 for another new therapy called ide-cel.
The $ 9-per-share sweetener traded up $ 4.76 a piece in April before falling to 49 cents in Thursday’s extended trading. There are almost 715 million outstanding CVRs, which would have resulted in a total payment of $ 6.4 billion if all the terms had been met, according to data compiled by Bloomberg. CVRs will no longer be traded 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 still wants to bring therapy to patients.
In a December 23 note, Mizuho analyst Salim Syed pointed out how rare it is for the FDA to approve drugs between the Christmas and New Year holidays. He estimated the value of the CVR dispute at 30 cents to $ 1.40.
“With the assistance of James Ludden.”