Former Celgene Shareholders' Contingent Value Rights Slip Further Away
On Wednesday, Bristol Myers Squibb (NYSE: BMY) told investors the FDA would require an extra three months to complete its review of liso-cel, a cell-based cancer therapy candidate that the big pharma took control of in its 2019 acquisition of Celgene. Instead of paying upfront for Celgene's late clinical-stage pipeline, Bristol Myers Squibb issued contingent value right (CVR) shares worth $9 in the event liso-cell and two other drugs earn FDA approval by preset deadlines.
The first component of that CVR, ozanimod, met its deadline in March when the FDA approved it to treat multiple sclerosis. Liso-cel needs to earn approval by the end of 2020, and the third candidate, ide-cel needs to earn FDA approval by March 31, 2021, or the CVR will expire without any payout.
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Source Fool.com
