Cigna has filed a federal lawsuit against Bristol Myers Squibb, alleging the pharmaceutical giant engaged in anti-competitive practices to maintain a monopoly over Pomalyst, a blockbuster cancer drug used to treat multiple myeloma. The complaint, submitted Tuesday to the U.S. District Court in Manhattan, seeks triple damages for what the insurer claims are overcharges totaling "many hundreds of millions, if not billions, of dollars."
Allegations of Anti-Competitive Strategies
According to the lawsuit, Bristol Myers' subsidiary Celgene employed a series of tactics to block generic competition for Pomalyst, whose chemical name is pomalidomide. Cigna alleges that Celgene launched "sham" patent infringement lawsuits against generic drug manufacturers and paid off several companies to abandon their legal efforts to introduce lower-cost alternatives to the market.
The insurer also contends that Celgene engaged in fraudulent conduct with the U.S. Patent and Trademark Office. Specifically, Cigna claims Celgene withheld key information about the existence of a separate patent filed by a Boston physician for using pomalidomide in the treatment of multiple myeloma. The lawsuit alleges this misrepresentation allowed Celgene to claim unexpected positive results during testing, thereby fraudulently strengthening its patent protections.
Financial Impact and Market Dominance
Pomalyst, which is also marketed internationally under the brand name Imnovid, represents a significant revenue source for Bristol Myers Squibb. U.S. sales of the drug reached $2.7 billion last year, with an additional $537 million generated in the first quarter of 2025, according to company data.
By "willfully maintaining monopoly power" over both brand-name and generic versions of Pomalyst, the lawsuit states, Bristol Myers caused insurers and other drug purchasers to pay substantially more than they would have in a competitive market environment.
Previous Legal Challenges
This legal action follows a recent decision involving similar accusations. Approximately three months ago, U.S. District Judge Edgardo Ramos dismissed a class-action suit led by Blue Cross Blue Shield of Louisiana. The judge ruled that plaintiffs in that case had not adequately demonstrated fraud in Celgene's patent process or shown that the lawsuits against generic competitors were baseless.
Disease Background and Treatment Context
Multiple myeloma is a blood cancer that affects plasma cells in the bone marrow. There is no known cure for the disease, and the five-year survival rate was 62.4% between 2015 and 2021, according to the National Cancer Institute.
Bristol Myers Squibb, based in Princeton, New Jersey, has not yet commented publicly on the new lawsuit. Cigna, headquartered in Bloomfield, Connecticut, is seeking unspecified triple damages in the case.
