Bristol Myers' Antitrust Allegations: Lawsuit Over Alleged Patent Deception For Blood Cancer Drug

Bristol Myers Squibb Co BMY faces fresh allegations in a recent lawsuit, accused of employing deceptive patents and illicit strategies to preserve its dominant position in the blood cancer drug market with Pomalyst (pomalidomide) long after it should have faced competition from generic alternatives.

Pomalyst is a prescription medicine, taken along with dexamethasone, used to treat adults with multiple myeloma who have previously received at least two medicines to treat multiple myeloma.

In a legal complaint submitted in a Manhattan federal court, Blue Cross Blue Shield of Louisiana contends that BMY violated U.S. antitrust laws, leading drug purchasers to overpay for Pomalyst significantly.

This healthcare insurer has initiated the lawsuit on behalf of a potential nationwide collective of entities that have covered the costs of Pomalyst since October 2020, Reuters noted. 

During this time, generic versions of the multiple myeloma treatment were anticipated to launch but were allegedly prevented due to Bristol Myers' alleged illegal practices.

The lawsuit seeks damages equal to three times the alleged overcharge. In 2022, Pomalyst generated nearly $3.5 billion in revenue out of Bristol Myers' total of $46.16 billion. 

Initially developed by Celgene, a company acquired by Bristol Myers in 2019, the lawsuit alleges that Celgene obtained multiple patents through fraud. 

Bristol Myers then allegedly utilized these patents to initiate "sham lawsuits" against generic drug manufacturers to thwart the launch of their own Pomalyst generics. 

Ultimately, Bristol Myers reached settlements with various generic companies, including Teva Pharmaceutical Industries TEVA, Aurobindo Pharma, Breckeridge Pharmaceutical, and Natco Pharma, under which they consented to delay the introduction of generic alternatives until 2026.

Price Action: BMY shares are up 0.90% at $60.21 on the last check Thursday.