Pharmaceutical products from Bristol-Myers Squibb Co.
Photographer: Daniel Acker / Bloomberg
Photographer: Daniel Acker / Bloomberg
Investors in a transaction sweetener arose when Bristol-Myers Squibb Co. has acquired Celgene Corp. obtained in 2019, saw that their bet was wiped out all or nothing because U.S. regulators did not approve a drug in time.
The conditional value right, or CVR, dependent on a trio of drug candidates being cleared. In a Bristol-Myers said on Friday that the second deadline – approval for lymphoma cell therapy liso-cell – expires on December 31 without a decision by the Food and Drug Administration. The final hurdle of the CVR would have been approval on March 31 for another new therapy called idea cell.
The $ 9 per share sweetener traded at $ 4.76 a share in April before falling to 49 cents on Thursday. There are nearly 715 million CVRs outstanding, which would amount to a total payout of $ 6.4 billion if all the conditions were met, according to information compiled by Bloomberg. The CVRs will no longer trade on the New York Stock Exchange.
Bristol-Myers said it is still working closely with the FDA to support the revision of the Biologics License Application for lyso-cell and still wants to bring the therapy to patients.
In a note dated December 23, Mizuho analyst Salim Syed stressed how rare it is for the FDA to approve drugs between the Christmas and New Year holidays. He estimates the CVR’s litigation value at 30 cents to $ 1.40.
– Assisted by James Ludden