- A lawsuit seeking at least $236M is charging Sanofi (SNY -2.5%) with delaying development on Lemtrada, its multiple sclerosis drug, in order to avoid $708M it would owe to rights holders tied to its deal to purchase Genzyme.
- Development of Lemtrada was in process at Genzyme when Sanofi purchased the company, and the deal included tradable certificates worth money if Lemtrada was approved by March 31, 2014.
- American Stock Transfer & Trust Co., a trustee for those rights holders, says Sanofi intentionally took a "slow path" to approval despite promising "diligent efforts" to meet the goals.
- The trustee also charges that after November 2014 approval, Sanofi underfunded marketing for the drug and actively promoted another, meaning that sales benchmarks were missed.