Bristol-Myers sued for $6.4 billion in alleged delay in seeking FDA approval for Celgene drug

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  • Bristol Myers Squibb (BMY -0.5%) was sued for $6.4B on Thursday for an alleged delay in seeking FDA approval for Breyanzi to avoid payments linked to Contingent Value Right (NYSE:BMY.RT) received by Celgene shareholders as part of its acquisition in 2019.
  • The CVR entitled Celgene shareholders to receive an all-or-nothing payment of $9.00 in cash if Celgene meets three milestones including the FDA approval for Breyanzi (lisocabtagene maraleucel; liso-cel) by December 31.
  • With no FDA decision by the deadline, Bristol Myers announced on January 01 that the Contingent Value Rights Agreement was terminated.
  • The lawsuit filed by UMB Bank NA, acting as a trustee for Celgene 's former shareholders says that Bristol Myers failed to exercise 'contractually required `diligent efforts'" to win the approval by the required date, Reuters reported.
  • By missing the deadline, Bristol Myers could avoid an additional payment for Celgene shareholders enabling it to acquire the company at an ""enormous discount"" and benefit from a ""windfall,"" says the complaint.
  • ""We will not be commenting on pending litigation,"" Bristol Myers has said in response.
  • In February, Breyanzi was approved by the FDA for patients with certain types of large B-cell lymphoma.

    For this year Bristol-Myers Squibb 's revenue will be around 46.1 billion USD. This is according to the average of the analysts' estimates. This is slightly more than 2020's revenue of 42.52 billion USD.

    Historical revenues and results Bristol-Myers Squibb plus estimates 2020



    The analysts expect for 2021 a net profit of 16.74 billion USD. For this year the consensus of Bristol-Myers Squibb 's result per share is a profit of 7.44 USD. The price/earnings-ratio is then 9.06.

    Per share the analysts expect a dividend of 1.95 USD per share. Thus the dividend yield equals 2.89 percent. The average dividend yield of the pharmaceutical companies is a moderate 1.39 percent.

    Bristol-Myers Squibb 's market value equals around 150.14 billion . The Bristol-Myers Squibb stock was the past 12 months quite unstable. Since last June the stock is even 23 percent higher. This year the stock price moved between 54 and 68 dollar.

    Historical stock prices Bristol-Myers Squibb from 2007 till 2021

    On Friday the stock closed at 67.39 USD.

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