Bristol Myers Squibb was sued for $6.4 billion June 3 for allegedly delaying the FDA approval of its cancer drug Breyanzi so it could avoid making a milestone payment to the shareholders of Celgene, which the drugmaker acquired in 2019.
The lawsuit was filed by UMB Bank, acting as a trustee for ex-Celgene shareholders. It said Bristol Myers Squibb delayed Breyanzi's approval so it wouldn't have to make a $6.4 billion milestone payment tied to the approval. It alleged the drugmaker failed to fulfill its contract with Celgene because it did not employ "diligent efforts" to win the drug's approval by the Dec. 31, 2020, deadline laid out in the agreement.
Missing the deadline allowed Bristol Myers Squibb to owe $9 less to Celgene shareholders for each share it held. The lawsuit said this gave Bristol Myers Squibb an "enormous discount" on the acquisition.
Bristol Myers Squibb acquired Celgene in November 2019 and won FDA approval for Breyanzi in February 2021.
Bristol Myers Squibb said it will not comment on pending litigation.