Bristol-Myers says CVR Agreement is terminated
With no FDA decision on liso-cel before December 31, Bristol Myers Squibb (NYSE:BMY) says, the Contingent Value Rights Agreement that followed its acquisition of Celgene, automatically terminated.
The Biologics License Application for isocabtagene maraleucel (liso-cel) in adults with relapsed or refractory large B-cell lymphoma after at least two prior therapies remains under the FDA review with no new action date. As a result, one of the three required milestones for payment was not met, and, therefore, CVRs would no longer trade on the NYSE from January 01, the company said in a statement.
According to Bloomberg, nearly 715 million Contingent Value Rights (NYSE:BMY.RT) were outstanding, with a potential all-or-nothing payout of $6.4 billion in total, or $9 a share, if three drug candidates from Celgene won regulatory approval before key deadlines.
Ahead of the deadline for liso-cel on December 31, CVRs dropped ~43.0% and ~24.4% in value on Thursday and Wednesday, respectively.
