Cigna sues Bristol Myers over alleged monopoly for multiple myeloma drug Pomalyst

Cigna has sued Bristol Myers Squibb, alleging the drugmaker violated U.S. antitrust law by maintaining a monopoly over its blockbuster multiple myeloma drug Pomalyst. Cigna claims BMS's Celgene unit filed 'sham lawsuits' and paid generic manufacturers to delay competition, leading to 'hundreds of millions, if not billions, of dollars' in overpayments for the drug, which generated $2.7 billion in U.S. sales last year. Cigna is seeking unspecified triple damages.

Analysis

Bristol Myers Squibb (BMY) is facing a significant legal and financial challenge following an antitrust lawsuit filed by Cigna (CI) over its blockbuster multiple myeloma drug, Pomalyst. The lawsuit alleges that BMY's Celgene unit engaged in anticompetitive practices, including filing sham patent lawsuits and paying generic manufacturers to delay market entry, thereby maintaining an illegal monopoly. This legal action puts a substantial revenue stream at risk, as Pomalyst generated $2.7 billion in U.S. sales last year and $537 million in the first three months of 2025. The claim for unspecified triple damages, based on alleged overpayments of potentially billions of dollars, represents a material financial liability for BMY. The allegations, combined with Cigna's assertion that Celgene failed to disclose a prior patent, directly threaten the intellectual property foundation of this key drug, justifying the strongly negative sentiment (-0.8) and high market impact score (0.7) associated with the news.

Key Decisions for Investors

• Investors in Bristol Myers Squibb should closely monitor this antitrust litigation, as an adverse outcome could result in substantial financial penalties and the premature erosion of Pomalyst's significant revenue stream.
• The allegations introduce a major legal overhang on BMY, warranting a re-evaluation of the company's risk profile and potential for valuation multiple compression until the lawsuit's outcome is clarified.
• For Cigna, a successful lawsuit presents a potential upside through financial recovery and lower future drug expenditures, though the timing and ultimate financial impact remain uncertain and likely less material to its overall valuation compared to the risk for BMY.