Celgene, Boston Children's Hospital in dispute over cancer drug payments

|About: Celgene Corporation (CELG)|By:, SA News Editor

Boston Children's Hospital is seeking millions in unpaid royalties from Celgene (CELG), WSJ reports.

In a lawsuit filed last summer, the hospital claims the company violated a 2002 contract when it ceased paying royalties on Revlimid and Pomalyst — the hospital apparently helped discover their cancer fighting abilities.

The case is further complicated by the fact that the hospital sold most of its Revlimid rights to an unnamed third party for $130.5M.

In any event, an unfavorable ruling would likely cost CELG millions, as "court filings [show] Children's [believes] it is owed $3M in unpaid royalties for the first quarter alone."