Bristol Myers Squibb to face USD 6.4 billion lawsuit over delayed drug
Category: #healthcare  By Mateen Dalal  Date: 2022-06-27
  • share
  • Twitter
  • Facebook
  • LinkedIn

Bristol Myers Squibb to face USD 6.4 billion lawsuit over delayed drug

A U.S. judge has reportedly refused to toss out a USD 6.4 billion lawsuit that claimed pharma giant Bristol Myers Squibb Co. postponed the release of its cancer drug Breyanzi to avoid paying out dividends to stakeholders and investors of the formerly well-known Celgene Corp., which the pharmaceutical company had acquired in 2019 for USD 80.3 billion.

Bristol Myers' argued that the trustee for the former Celgene shareholders UMB Bank NA failed to properly notify it of its alleged breach of merger duties. However, the biotech company’s argument was denied by District Judge, Jesse Furman in Manhattan.

According to Furman, Bristol Myers offers no authority to support the claim that a violation of an agreement cannot, as a legal matter, continue to stay after the contract has been terminated.

To win U.S. clearance for Breyanzi and two other Celgene medications by specific deadlines, the firm agreed to pay shareholders of Celgene owning contingent value rights an additional USD 9 per share in cash.

The New York-based company was accused of failing to make the necessary diligent efforts to get Breyanzi approved by December 31, 2020, resulting in a windfall by avoiding the additional payment even if two of the treatments were approved by the deadlines, sources claimed.

According to the trustee, Bristol Myers failed to set up its manufacturing facilities for inspections and held back sharing crucial information with the U.S. Food and Drug Administration. The company also claimed that the lawsuit must be dismissed given that the agreement to compensate Celgene shareholders had expired.

However, the judge ruled that UMB's right to litigate was expressly stated in the contract and that Bristol Myers was not absolved of any serious violations that occurred before the contract's expiration.

Source Credits:

https://health.economictimes.indiatimes.com/news/pharma/bristol-myers-must-face-6-4-bln-lawsuit-over-delayed-cancer-drug/92458637

About Author

Mateen Dalal    

Mateen Dalal

Despite working as a professional testing engineer, Mateen Dalal always held a liking for content creation. Following his passion, he now pens down articles for itresearchbrief.com and a couple of similar portals. Mateen is a qualified electronics and telecommunicat...

Read More>>

More News By Mateen Dalal

China: Covid-19 curbs eased in Guangzhou and Chongqing amidst protests
China: Covid-19 curbs eased in Guangzhou and Chongqing amidst protests
By Mateen Dalal

Guangzhou and Chongqing cities of China have reportedly reduced COVID-19 curbs following the clash b...

Canada to invest $708 Mn to develop new nuclear power technology
Canada to invest $708 Mn to develop new nuclear power technology
By Mateen Dalal

Canada would invest $708 million (CAD 970 million) for the development of a grid-scale small modular...

Rockefeller Foundation donates $15Mn to fight AIDS, TB & Malaria
Rockefeller Foundation donates $15Mn to fight AIDS, TB & Malaria
By Mateen Dalal

The Rockefeller Foundation has reportedly announced that it intends to donate $15 million to the Glo...