8-KMaterial AgreementsOther EventsExhibits & Filings

BRISTOL MYERS SQUIBB CO 8-K Report, Agreement Terminated (Jun 25, 2007)

Filed June 25, 2007For Securities:BMYCELG-RIBMYMP

Summary

Bristol-Myers Squibb Company (BMY) filed an 8-K on June 25, 2007, reporting a significant legal victory regarding its blockbuster drug Plavix. On June 19, 2007, a U.S. District Court upheld the validity and enforceability of the patent for clopidogrel bisulfate, the active ingredient in Plavix, extending its main patent protection in the United States until November 2011. The court also ruled that Apotex's generic version infringes on sanofi's patent, issuing an injunction against Apotex's marketing of the generic product until the patent expires. This ruling effectively terminates the $200 million surety bond previously posted by BMY to cover potential damages to Apotex, releasing BMY from this obligation and its associated cash collateral. The underlying surety arrangements remain in place for future needs.

Key Highlights

  • 1U.S. patent for Plavix (clopidogrel bisulfate) upheld until November 2011.
  • 2Court ruled Apotex's generic version infringes sanofi's patent.
  • 3Apotex is enjoined from marketing its generic Plavix in the U.S. until patent expiry.
  • 4The $200 million surety bond posted by BMY has been released.
  • 5BMY's obligation to indemnify the surety is terminated.
  • 6The company's $200 million in cash collateral for the bond has been released.
  • 7Underlying surety arrangements with Travelers Casualty and Surety Company of America remain in effect.

Frequently Asked Questions

The U.S. District Court upheld the validity and enforceability of the patent for Plavix, extending its protection until November 2011. The court also found that Apotex's generic version infringes the patent and enjoined Apotex from selling its product in the U.S. until the patent expires.

The ruling led to the termination of a $200 million surety bond that BMY had arranged. This means BMY is no longer obligated to indemnify the surety for potential damages to Apotex, and the $200 million in cash collateral pledged for the bond has been released.

Plavix is a blockbuster drug manufactured by Bristol-Myers Squibb (in partnership with sanofi) used to prevent blood clots. The patent protection for such a significant revenue-generating drug is crucial for the company's financial performance, and its extension provides market exclusivity and revenue stability.

No, the ruling specifically terminates BMY's obligations related to the $200 million bond for Apotex. The broader surety arrangements with Travelers Casualty and Surety Company of America, which facilitate the issuance of surety bonds from time to time, remain in effect.