A U.S. federal appeals court has revived a $6.7 billion lawsuit against Bristol Myers Squibb, accusing the company of cheating former Celgene shareholders by delaying federal approval for three drugs, including the cancer treatment Breyanzi.
Background
The case arose from Bristol Myers’ purchase of Celgene for $80.3 billion in 2019. Celgene shareholders who held “contingent value rights” (CVR) were entitled to an extra $9 per share in cash if Bristol Myers won timely U.S. Food and Drug Administration approvals for Liso-cel, which is sold as Breyanzi, and the drugs Ozanimod and Ide-cel.
Bristol Myers won FDA approval for Breyanzi to treat non-Hodgkin lymphoma on February 5, 2021, five weeks after the relevant deadline. The appeals court said UMB Bank, the trustee for the CVR holders, had standing to sue because Bristol Myers, the prior trustee, and a majority of the CVRs’ “beneficial owners” approved UMB’s appointment.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
