New York Judge Denies Bristol Myers Claim To Dismiss Lawsuit Over Delayed Cancer Drug Approval: Reuters

  • According to a Reuters report, U.S. District Judge Jesse Furman in Manhattan refused to dismiss a $6.4 billion lawsuit accusing Bristol Myers Squibb Co BMY of delaying its Breyanzi cancer drug to avoid payments to former Celgene shareholders.
  • The judge rejected Bristol Myers' claim that it was never properly notified about its alleged default on its merger obligations by the trustee representing the former Celgene shareholders.
  • While two drugs were approved by the deadlines, the trustee said Bristol Myers failed to use the required "diligent efforts" to obtain approval for Breyanzi by December 31, 2020. It reaped a "windfall" by avoiding the extra payout of $9/share in cash.
  • FDA approved Breyanzi in February 2021 for non-Hodgkin's lymphoma.
  • The trustee said Bristol Myers had delayed submitting critical information to the FDA and failed to prepare its manufacturing plants for inspections.
  • "(Bristol Myers) cites no authority to support the proposition that a breach of a contract cannot, as a matter of law, 'continue' after the termination of the contract," Furman wrote.
  • Most recently, FDA approved Breyanzi for adult patients with large B-cell lymphoma with the refractory disease to first-line chemoimmunotherapy or relapse within 12 months of first-line chemoimmunotherapy or who are not eligible for hematopoietic stem cell transplant.
  • Price Action: BMY shares are up 1.54% at $80.18 during the market session on the last check Monday.

Posted In: BriefsBiotechLarge CapNewsHealth CareFDALegalGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.