Bristol Myers Faces $6.4B Lawsuit Over Delayed Approval of Breyanzi Non-Hodgkin Lymphoma Drug: Reuters - Bristol-Myers Squibb (NYSE:BMY)

Bristol Myers Squibb Co BMY was sued for $6.4 billion for allegedly delaying approval for Breyanzi cancer drug to avoid payments to shareholders of the former Celgene Corp, acquired in 2019 for $80.3 billion in cash and stock.
According to a complaint in Manhattan federal court, Bristol Myers failed to use contractually required "diligent efforts" to win FDA approval for the non-Hodgkin lymphoma drug by December 31, 2020, deadline.
The complaint said that BMY withheld or delayed the submission of information for approval and did not prepare its manufacturing plants for required inspections.
By missing the deadline, Bristol Myers was excused from owing an additional $9/share in cash to Celgene shareholders, enabling it to acquire Celgene at an "enormous discount" and enjoy a "windfall," the complaint said.
FDA approval for Breyanzi (lisocabtagene maraleucel) for relapsed or refractory large b-cell lymphoma came in February 2021.
The lawsuit was brought by UMB Bank NA, acting as a trustee for Celgene's former shareholders.
"We will not be commenting on pending litigation," Bristol Myers said in a statement.
The $9 per share "milestone" payment had been contingent on New York-based Bristol Myers winning FDA approval by specified deadlines for three drugs that Celgene had been developing.
Bristol Myers won FDA approval for the two other Celgene drugs, Zeposia for multiple sclerosis and Abecma to treat multiple myeloma, by the specified deadlines.
Price Action: BMY shares are up 0.35% at $64.92 during the market session on the last check Thursday.

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