Bristol Myers Squibb accused of illegal tactics to keep blood cancer drug Pomalyst monopoly in lawsuit

Pomalyst is a top seller for Bristol Myers, bringing in nearly $3.5 billion out of $46.16 billion of its total revenue last year. The company in July forecast sales of the drug to fall this year, however, as more patients receive it for free through a patient assistance program.

The drug was developed by Celgene, a company acquired by Bristol Myers in 2019. Tuesday's lawsuit claims that Celgene fraudulently obtained multiple patents on it based on information that was already in the public domain, a fact it concealed from the U.S. Patent and Trademark Office while it was applying for the patents.

The company then used those patents to file "sham lawsuits" against generic drugmakers to prevent them from launching their own versions of Pomalyst, the lawsuit said.

Bristol Myers eventually reached settlements with several generic companies including Teva Pharmaceutical Industries, Aurobindo Pharma, Breckeridge Pharmaceutical and Natco Pharma under which they agreed delay the launch of generics until 2026.

Blue Cross Blue Shield of Louisiana said that while the exact terms of the agreements were "cloaked under an effort at absolute secrecy," the economic incentives for the companies suggest they must have been "large, unjustified" payments in exchange for not launching generics, which can be illegal.

The generic companies, which are also named as defendants in the lawsuit, did not immediately respond to requests for comment.