CELG Celgene Corporation

   By Colin Kellaher 
 

Bristol-Myers Squibb Co.'s (BMY) deal to buy Celgene Corp. (CELG) includes contingent value rights, or CVRs, that could be worth another $9 a share.

Bristol-Myers on Thursday said it agreed to buy Celgene in a cash and stock deal valued at about $74 billion, or $102.43 a share, based on Wednesday's closing stock prices.

Celgene shareholders also will receive one tradeable CVR for each share held.

Bristol-Myers said each CVR entitles the holder to a potential payment of $9 in cash upon approval by the Food and Drug Administration of ozanimod, liso-cel and bb2121 by certain specified dates and for specified indications.

A CVR is often used when buyers and sellers can't agree on a purchase price and usually kicks in after an acquired company meets certain sales or regulatory targets.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

January 03, 2019 07:44 ET (12:44 GMT)

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