Cigna's Profit Surge: A $100 Billion Biosimilar Boom Awaits

Cigna surpassed Wall Street's expectations for third-quarter profits, driven by its pharmacy benefit management unit gaining new clients and strong demand for biosimilars of arthritis drug Humira. The company foresees a significant opportunity for biosimilars in the U.S., estimating $100 billion annual specialty drug spending by 2030.

Cigna reported better-than-expected third-quarter profits on Thursday due to the robust performance of its pharmacy benefit management unit. This segment gained new clients and experienced strong demand for biosimilars of the popular arthritis medication, Humira.

Starting in June, Cigna began distributing biosimilars of Humira through its specialty pharmacy, Accredo, at no additional cost to patients. The company anticipates this opportunity extending beyond Humira, projecting that $100 billion in annual specialty drug spending in the U.S. could face biosimilar and generic competition by 2030.

Pharmacy benefit managers like Cigna administer prescription drug benefits for insurance companies, large employers, and Medicare plans. Cigna's Evernorth healthcare services division reported a 36% rise in total adjusted revenue, reaching $52.64 billion. The company's adjusted profit of $7.51 per share exceeded analysts' predictions of $7.20 per share.

(With inputs from agencies.)