Celgene CVRs drop as deadline for liso-cel approval nears

 

• The tradeable Contingent Value Right (NYSE:BMY.RT) received by Celgene shareholders when the company was acquired by Bristol-Myers Squibb (NYSE:BMY) last year has lost 20.9% in value today, as a key milestone of the deal approaches.
• The CVR entitles each shareholder to receive an all-or-nothing payment of $9.00 in cash if Celgene wins three key regulatory milestones: the FDA approvals for ozanimod in multiple sclerosis, and CAR- T therapy lisocabtagene maraleucal (liso-cel) in B-cell lymphoma before December 31, 2020, and for multiple myeloma therapy, ide-cel before March 31, 2021.
• FDA OKed ozanimod in March sending the CVR 20% higher, and the tradable security more than doubled in value in early December as investors renewed confidence that liso-cel could win regulatory hurdle before the year-end. In such a scenario, the CVR value will rise to $4.50, Mizuho analyst, Salim Syed wrote last week.
• However, implying a low probability of success, the CVR has lost 60.4% for the year so far, having shed nearly a quarter of value in September after the management said that the FDA inspection was still pending for its manufacturing plant for CAR T therapies.
• https://seekingalpha.com/news/3647946-celgene-cvrs-lose-21-deadline-for-liso-cel-approval-nears