A New York federal judge dismissed allegations on Monday that Bristol Myers Squibb purposely delayed Breyanzi’s approval to avoid paying out $6.4 billion in contingent value rights.
Judge Jesse Furman ruled that UMB Bank, which brought the case against Bristol Myers in 2021, lacked standing to do so because it was not properly appointed as a trustee for shareholders. Furman noted that a new lawsuit can be filed by a “properly appointed Trustee.”
“After three years of litigation and with so much money at stake, the Court does not reach that conclusion lightly,” Furman said.
Bristol Myers’ $74 billion Celgene buyout closed in 2019, following “months of intense negotiations,” according to court documents. Those negotiations resulted in Bristol Myers putting $6.4 billion into a contingent value rights agreement that required FDA approval for Zeposia, Breyanzi and Abecma by certain deadlines. If any of the drugs missed their deadline for approval, the company owed nothing.
The company received approval for Breyanzi 36 days late, rendering the agreement worthless.
UMB Bank accused Bristol Myers of “improperly delaying” the approval, including by omitting “basic data” that’s routinely included in regulatory filings, and failing to prepare two manufacturing facilities for inspection.
Breyanzi was approved in 2021 for adults with relapsed or refractory large B cell lymphoma, and has since racked up additional indications in lymphocytic leukemia, follicular lymphoma and mantle cell lymphoma. The drug generated $364 million in 2023 sales worldwide.
BMS did not respond to a request for comment at press time. Lawyers representing plaintiffs were not immediately available for comment.