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BRISTOL MYERS SQUIBB CO 8-K Report, Corporate Update (Jan 4, 2021)

Filed January 4, 2021For Securities:BMYCELG-RIBMYMP

Summary

Bristol-Myers Squibb Company (BMY) announced on January 1, 2021, that a key milestone for its Contingent Value Rights (CVRs) was not met. The U.S. Food and Drug Administration (FDA) did not issue a decision on the Biologics License Application (BLA) for lisocabtagene maraleucel (liso-cel) for the treatment of relapsed or refractory large B-cell lymphoma by the December 31, 2020 deadline. As a direct consequence of this missed milestone, the CVR Agreement has terminated automatically. This means the CVRs, which were contingent on certain development and regulatory approvals of liso-cel, are no longer eligible for any payment and will cease trading on the NYSE. This development significantly impacts the potential future value for CVR holders.

Key Highlights

  • 1The FDA did not approve lisocabtagene maraleucel (liso-cel) by the December 31, 2020 deadline.
  • 2One of the three required milestones for Contingent Value Right (CVR) payment has not been met.
  • 3The Contingent Value Rights Agreement has terminated automatically as of January 1, 2021.
  • 4CVRs are no longer eligible for payment under the terminated agreement.
  • 5The CVRs will no longer be traded on the New York Stock Exchange (NYSE).
  • 6This announcement relates to the BLA for liso-cel for adults with relapsed or refractory large B-cell lymphoma after at least two prior therapies.

Frequently Asked Questions

The primary reason for the CVR termination is that Bristol-Myers Squibb did not receive a decision from the FDA regarding the Biologics License Application (BLA) for lisocabtagene maraleucel (liso-cel) by the specified deadline of December 31, 2020. This failure to meet one of the required milestones triggered the automatic termination of the CVR Agreement.

No, as the CVR Agreement has terminated automatically due to the missed milestone, the CVRs are no longer eligible for any payment. The value associated with these CVRs is now effectively nullified.

The CVRs will no longer trade on the New York Stock Exchange (NYSE) because the agreement governing them has terminated.

The missed milestone was related to the Biologics License Application (BLA) for lisocabtagene maraleucel (liso-cel) for the treatment of adults with relapsed or refractory large B-cell lymphoma after at least two prior therapies.