Cigna CEO David Cordani: 'Biosimilars represent a force of change and opportunity for continued growth'

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Cigna's profits increased to $1.9 billion during the second quarter of 2024, compared with $1.8 billion during the same quarter in 2023, according to the company's earnings report released Aug. 1.

The growing specialty pharmacy business is one reason for the increase.

Specialty and Care Services showed strong growth with revenue up 18% to $22.9 billion, and pre-tax adjusted earnings were up 12% to $756 million, at the high end of the company's long-term target growth range, said Brian Evanko, CFO and president and CEO Cigna Healthcare.

On Thursday's earnings call, Chairman and CEO David Cordani talked about the future of specialty pharmacy for Cigna and the increased demand for biosimilars nationwide.

At the end of June, Cigna began dispensing its biosimilar for Humira at zero out-of-pocket cost, saving patients $3,500 on average per year, he said.

By 2030, an additional $100 million of annual specialty drug spend in the U.S. will be subject to biosimilar and generic competition, Cordani said. In the U.S., there are already more than 20 gene therapy and cell therapies available with nearly 1,000 more in the pipeline.

"Additionally, as we know, GLP-1s are growing rapidly, helping to treat diseases and complications that stem from obesity and diabetes," Cordani said. "This class of drug is on tap to be the number one pharmacy benefit trend driver for plans of all sizes this year. And the impact will grow with some forecasting nearly 10% of the U.S. population using GLP-1s in the next 10 years or sooner."

This raises the question of affordability for GLP-1 and gene therapies. Last year, the median annual price for new drugs coming to market was $300,000, up 35% over 2022, according to Cordani.

WHY THIS MATTERS

"Biosimilars represent a force of change and opportunity for continued growth," Cordani said.

Agreements are in place with multiple manufacturers to produce biosimilars for Evernorth Health Services' pharmaceutical distributor, Quallent Pharmaceuticals.

Evernorth's adjusted income grew 12% year-over-year during the second quarter. Evernorth behavioral care group is being expanded to seven additional states. 

Express Scripts oncology benefit services will be available in 2025. 

"Our new solution helps patients navigate the challenges of cancer care by providing a single oncology benefit, integrating pharmacy, medical and behavioral health treatments," Cordani said.  

THE LARGER TREND

Cigna continues its progress in selling its Medicare Advantage business. 

Earlier this year, Cigna announced the sale of its MA business to Health Care Service Corporation for $3.7 billion. Cigna remains on track to close in the first quarter of 2025 as planned.

While the market remains attractive, staying in would require sustained investments, focus, capital and resources, Cordani said during Cigna's fourth quarter earnings in February.

Email the writer: SMorse@himss.org

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