Cigna's Profitable Leap in Biosimilar Market

Cigna surpassed Wall Street's projections for the third-quarter profit, driven by its pharmacy benefit management's expansion and high demand for alternatives to Humira, a top-selling arthritis drug. The company foresees substantial growth in biosimilar opportunities, amounting to an additional $100 billion in annual spending by 2030.

Cigna reported a remarkable performance in the third quarter, exceeding Wall Street's profit expectations. The boost was largely due to its pharmacy benefit management division's ability to attract new clients, spurred by a considerable demand for biosimilars of Humira, a leading arthritis medication.

The company began distributing these close copies of Humira in June through its specialty pharmacy, Accredo, at no additional cost to patients. This strategic move is part of a broader effort by Cigna to capitalize on an expected $100 billion opportunity in the specialty drug market by 2030.

Total adjusted revenue for Cigna's Evernorth healthcare services unit surged by 36% to reach $52.63 billion. This success translated into an adjusted profit of $7.51 per share for the quarter, surpassing analysts' predictions of $7.20 per share.

(With inputs from agencies.)