Traders within the biotech startup Padlock Therapeutics have accused Bristol Myers Squibb of reneging on funds of as much as $450 million that have been negotiated as a part of a 2016 acquisition settlement, in keeping with a lawsuit unsealed final week.
Bristol paid $150 million in upfront money to purchase Padlock, which at the moment was creating a novel antibody expertise aimed toward discovering new medicine for autoimmune ailments like rheumatoid arthritis. The deal required Bristol to make extra money funds as much as $450 million to Padlock’s traders and executives if sure growth and regulatory milestones have been achieved.
Padlock’s traders, which embody the enterprise capital agency Atlas Enterprise and its founding chief govt Michael Gilman, now accuse Bristol of utilizing a “misleading scheme involving manipulation of the patent course of” and “hiding data” to keep away from making any milestone funds, in keeping with the lawsuit filed in Delaware Chancery Courtroom.
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