Brooklyn’s Bristol-Myers is sued for $6.4bn over alleged delay in cancer drug release



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Brooklyn’s Bristol-Myers is sued for $6.4bn over alleged delay in cancer drug release

On Thursday, Bristol Myers Squibb Co., the New York City-based 134-year-old American multinational pharmaceutical giant, had been sued for $6.4 billion in a Manhattan Federal Court over charges that the pharma industry megalith had allegedly delayed its release of cancer drug Breyanzi in a bid to avoid an additional pay out to shareholders of Celgene Corp., which Bristol Myers Squibb had snatched up back in 2019 at a record $80.3 billion cash-and-stock takeover deal.

More interestingly, as former Celgene shareholders were vying to squeeze more capital out of the deal, the lawsuit lodged against Bristol Myers Squibb in a Manhattan Federal Court had accused the American pharmaceutical behemoth of an alleged failure to win US FDA (Food and Drug Administration) approval for its non-Hodgkin lymphoma drug by a December 31, 2020 deadline.

Nevertheless, Bristol Myers had completed an acquisition of Celgene in a $80.3 billion cash-and-stock deal back in the November of 2019, while its cancer drug Breyanzi had received a US FDA approval on February 5 this year.

According to the lawsuit, an alleged missing out of the deadline for Bristol Myers had saved an additional $9 per share for each Celgene stock the Celgene shareholders were holding while allowing Bristol Myers to purchase Celgene at an “enormous discount”.

Bristol Myers sued over alleged delay in cancer drug approval

In tandem, UMB Bank NA, that acts as a trustee for Celgene’s former shareholders and had filed the petition, was quoted saying in the complaint that Bristol Myers either had belatedly submitted or withheld critical information for Breyanzi’s approval, while the New York City-based pharmaceutical had shown no intent to prepare a production line for its cancer drug before a December 31, 2020 deadline.

However, while being asked over the issue, Bristol Myers said, “We will not be commenting on pending litigation.