8-KOther Events

BRISTOL MYERS SQUIBB CO 8-K Report, Corporate Update (Feb 23, 2021)

Filed February 23, 2021For Securities:BMYCELG-RIBMYMP

Summary

Bristol Myers Squibb (BMY) filed an 8-K on February 22, 2021, to provide an update on contingent value rights (CVRs) related to the 2019 acquisition of Celgene. The filing details the net sales performance of Abraxane for the year ended December 31, 2020, and the resulting payment to CVR holders. Investors should note this update as it pertains to a financial obligation stemming from a significant prior acquisition. The company has confirmed that the net sales for Abraxane reached $1,246,656,798 for the fiscal year 2020. Consequently, Bristol Myers Squibb will pay approximately $6.17 million to the trustee for the CVR holders. This payment is scheduled to be made by March 8, 2021, with individual CVR holders expected to receive about $0.1425 per right on or around March 8, 2021, after the record date of March 5, 2021. This information is crucial for investors who hold these specific CVRs, as it clarifies the payout based on the product's sales performance.

Key Highlights

  • 1BMY provided an update on contingent value rights (CVRs) related to the Celgene acquisition.
  • 2The net sales for Abraxane for the year ended December 31, 2020, were reported as $1,246,656,798.
  • 3A Net Sales Payment of approximately $6,166,420 will be paid to the CVR trustee.
  • 4The payment is expected to be made on or before March 8, 2021.
  • 5CVR holders of record as of March 5, 2021, will receive a pro rata portion of the payment.
  • 6The approximate payment per contingent value right is $0.142498.

Frequently Asked Questions

The CVRs are financial instruments granted by Celgene to certain holders in relation to its Abraxane® and Abraxis pipeline products, assumed by Bristol Myers Squibb following the acquisition of Celgene in 2019. These rights entitle holders to potential payments based on the sales performance of these products.

For the year ended December 31, 2020, Abraxane recorded net sales of $1,246,656,798.

Bristol Myers Squibb will pay approximately $6,166,420 to the trustee for the CVR holders. This amount is based on the 2020 net sales of Abraxane.

The trustee will pay the CVR holders on or before March 8, 2021. Holders who are on record as of March 5, 2021, will receive a pro rata share of the total Net Sales Payment, which amounts to approximately $0.142498 per contingent value right.