The Cigna Group (CI) Bernstein Healthcare 1:1 Forum 2024 summary

Market overview and growth trends

• Specialty drugs now account for a growing share of healthcare costs, expected to rise from 25% to 40% of total care costs within the next decade, driven by complex drug innovation.

• The specialty drug market is valued at $400 billion, growing in the high single digits, outpacing other healthcare segments.

• Over 70% of FDA-approved drugs last year were specialty drugs, with rare and orphan drugs representing a significant portion of new approvals.

• Specialty and care services are projected to deliver 8-12% long-term annual earnings growth, with 7-9% from secular industry growth and up to 2% from share gains.

• Biosimilars are seen as a $100 billion opportunity by the end of the decade, offering both near- and long-term growth potential.

Business structure and differentiation

• The organization competes across the entire specialty market, serving both pharmacy and medical benefit spaces through Accredo, CuraScript, and CarepathRx.

• Accredo treats over 1 million patients annually, with 40% of its business from outside the parent group, highlighting its market leadership.

• CuraScript serves over 12,000 healthcare providers, focusing on complex medication distribution and offering a high-touch, specialized account model.

• CarepathRx collaborates with over 700 hospitals and health systems, providing specialty pharmacy and infusion services.

• The ability to serve both home and provider settings is a key differentiator, making the organization a one-stop shop for manufacturers.

Clinical specialization and operational scale

• Accredo organizes care by disease state through 15 Therapeutic Resource Centers (TRCs), enabling deep clinical specialization.

• Over 600 field-based infusion nurses are directly employed, providing nationwide coverage and highly coordinated care.

• The organization operates 30 care delivery sites and four clean rooms, supporting safe handling of complex drugs.

• 90% of patients live within one hour of a nurse, ensuring rapid access to specialized care.

• Comprehensive drug access includes over 98% of limited and exclusive distribution drugs, more than any competitor.