Multiple myeloma, a blood cancer, now has a new oral treatment approved by U.S. regulators. The Food and Drug Administration cleared Zenbexus, made by Bristol Myers Squibb, as the first drug in a new class called CELMoDs and the first drug approved using a more sensitive measure of remission. On a separate legal track, a federal appeals court reversed a lower court's dismissal of a $6.7 billion suit accusing Bristol Myers of cheating former Celgene shareholders.
How Zenbexus works
CELMoDs are a class of drugs that work by redirecting a cell's natural machinery to eliminate cancer-causing proteins. Rather than attacking cancer through conventional chemistry, they commandeer a process that already exists inside the cell. Zenbexus is the first in its class to receive approval, and represents Bristol Myers' push to develop more potent blood cancer treatments.
The FDA's choice of measurement also matters. Remission, in plain terms, means no detectable cancer remaining in the body. A more sensitive remission measure sets a lower detection threshold, meaning the agency required evidence of a deeper response before clearing the drug. Zenbexus is the first treatment approved under that standard.
The $6.7 billion shareholder claim
The lawsuit traces to Bristol Myers' $80.3 billion acquisition of Celgene in 2019. Former Celgene shareholders who held contingent value rights were promised an extra $9 per share in cash if Bristol Myers secured timely FDA approvals for three drugs. A contingent value right, or CVR, is a contractual promise attached to a deal: hit the specified milestone, pay the holder.
UMB Bank, acting as trustee for those shareholders, brought the suit claiming Bristol Myers deliberately delayed those approvals to avoid the payout. A lower court dismissed the case. A federal appeals court reversed that in a 3-0 ruling. The appeals court also resolved a procedural question: UMB Bank had been appointed with an error in its paperwork, but the court found that defect did not disqualify it from representing the shareholders. The $6.7 billion claim now returns to the lower court.