Bristol Myers Deal Bonus Pops as Drug Approval Clears Hurdle (1)

Bristol Myers Squibb Co.’s closely watched multiple sclerosis drug won approval from U.S. regulators, clearing the first hurdle for investors waiting to capitalize on a payment the drugmaker used to sweeten its purchase of Celgene Corp. last year.

Approval of the drug, which will be sold under the brand name Zeposia, delivers relief to holders of the so-called contingent value right, or CVR. That $9 cash payout, which traded as low as $1.96 this month, jumped 16% to $3.39 at 9:34 a.m. in New York on news of the approval. The multiple sclerosis drug is the first of three ...