8-KOther Events

BRISTOL MYERS SQUIBB CO 8-K Report, Corporate Update (Feb 24, 2022)

Filed February 24, 2022For Securities:BMYCELG-RIBMYMP

Summary

Bristol Myers Squibb (BMY) has filed an 8-K detailing the payment of contingent value rights (CVRs) related to the 2019 acquisition of Celgene Corporation. The filing specifically addresses the net sales of Abraxane for the year ended December 31, 2021, which triggered a payment to CVR holders. This payment reflects the ongoing financial obligations tied to the significant Celgene acquisition. Investors should note that the company has calculated the net sales for Abraxane to be approximately $1.18 billion for 2021. Based on this figure and the terms of the CVR Agreement, BMY will pay approximately $4.53 million to the trustee. This payment will then be distributed to eligible CVR holders of record as of March 6, 2022, resulting in a payment of roughly $0.1046 per CVR. This event is a direct consequence of the performance of a key acquired asset and provides clarity on the final payouts associated with this part of the Celgene deal.

Key Highlights

  • 1Bristol Myers Squibb (BMY) is making a payment related to Contingent Value Rights (CVRs) from the 2019 Celgene acquisition.
  • 2The payment is triggered by the 2021 net sales performance of the drug Abraxane.
  • 3Abraxane recorded net sales of approximately $1,181,043,283 for the year ended December 31, 2021.
  • 4BMY will pay approximately $4,526,082 to the CVR trustee.
  • 5The payment will be made to the trustee on or before March 7, 2022.
  • 6CVR holders of record as of March 6, 2022, will receive a pro rata distribution.
  • 7The per-CVR payment is approximately $0.104592.

Frequently Asked Questions

The CVRs are financial instruments issued by Bristol Myers Squibb (BMY) as part of the 2019 acquisition of Celgene Corporation. They entitle certain holders to potential future payments based on the performance of specific Celgene pipeline products, including Abraxane, over a defined period.

BMY is making a payment because the net sales of Abraxane for the year 2021 met the threshold outlined in the CVR Agreement, triggering an obligation to pay a portion of those sales to the CVR holders.

If you held the CVRs and were recorded as a holder on March 6, 2022, you will receive approximately $0.104592 for each CVR you own. The total payment to the trustee is around $4.53 million.

Bristol Myers Squibb will pay the amount to the trustee on or before March 7, 2022. The trustee will then distribute these funds to the eligible CVR holders of record as of March 6, 2022.