Hello from San Francisco! This week Ashley and I are attending the annual meeting JPMorgan Health Care Conference – the biggest gathering of biotech and pharma executives, investors and analysts within the US
The conference provides an impetus for what to anticipate from the healthcare industry in 2025. Executives from corporations large and small provided their key business and drug pipeline updates, but additionally weighed in on the Trump administration's potential impact on the sector and the outlook for the M&A and IPO markets.
In particular, this yr's conference appears to have increased security across the major venue – the Westin St. Francis Hotel the murder of Brian Thompsonthe CEO of UnitedHealth Group's insurance division, in New York City in December. There appears to be a squad of law enforcement officials stationed across the hotel, and metal barriers line the venue's entrances, flanked by several private security guards checking visitors' IDs.
Meanwhile, a bunch of protesters waited outside the venue holding signs slamming the constructing Insurance industrywhat was confronted a burst of pent up anger and frustration from the general public for the reason that murder.
As usual, the conference began with a couple of deals, including one in all the biggest deals we've seen for the reason that end of 2023.
Here's a fast summary of what I've seen up to now within the biotech and pharma space:
- Johnson & Johnson stole the show when it announced Monday that it will buy Intra-Cellular Therapies, the maker of a blockbuster drug for schizophrenia and depression, for $14.6 billion. Most, if not all, biotech and pharmaceutical deals didn’t exceed $5 billion in 2024, and the J&J acquisition appeared to spice up M&A sentiment in the brand new yr, particularly amongst a probable deal- friendly Trump administration.
- Eli Lilly announced Monday that it will acquire an experimental cancer program from startup Scorpion Therapeutics in a deal price as much as $2.5 billion, because the pharmaceutical giant expands its oncology pipeline. The company will acquire Scorpion's experimental oral therapy STX-478, which is currently in early trials for the treatment of breast cancer and other advanced solid tumors.
- GSK also announced on Monday a $1 billion deal to accumulate one other private cancer drug developer, IDRx. The agreement gives GSK an experimental treatment for a rare gastrointestinal cancer
- Modern on Monday lowered its sales forecast for 2025 by around $1 billion resulting from some potential headwinds later this yr, including increasing competition within the Covid vaccine market because the biotech continues to chop costs.
- Eli Lilly It was cut on Tuesday Sales forecast because it said, demand for its weight reduction and diabetes medications wouldn’t meet its high expectations.
You can send suggestions, suggestions, story ideas and data to Annika at annikakim.constantino@nbcuni.com.
Latest technology in healthcare
Hello from San Francisco! I'm reporting on-site on the JPMorgan Health Care Conference, where it's a balmy 50 degrees, a welcome change for this New Yorker.
There has already been a flood of announcements here. Perhaps unsurprisingly, artificial intelligence and the blockbuster weight reduction drugs often called GLP-1 are on everyone's lips.
Here's all the pieces you want to know up to now:
- Amazon Web services and General Catalyst announced Monday a brand new partnership aimed toward accelerating the event and deployment of AI tools for healthcare. General Catalyst's portfolio corporations, starting with Aidoc and Commure, will use AWS to speed up latest solutions for healthcare systems. Read CNBC's coverage Here.
- Waystar announced a brand new generative AI feature designed to assist hospitals quickly address insurance denials by mechanically writing dispute letters. Health systems spend nearly $20 billion every year reversing denied claims. Therefore, Waystar believes its latest tool may also help reduce these costs. Read CNBC's coverage Here.
- Nvidia announced Partnerships with several healthcare organizations, including clinical research provider IQVIA, neurotech startup Synchron, genomics company Illumina and academic medical center Mayo Clinic. Partnerships are a key pillar of Nvidia's healthcare business, which generates greater than $1 billion in revenue every year, said Kimberly Powell, Nvidia's vice chairman of healthcare, in an interview with CNBC.
- Dexcom released preliminary, untested results for its fourth quarter on Monday, a few month ahead of schedule. The company reported revenue of no less than $1.11 billion, up 8% from the identical period last yr. For 2025, Dexcom expects total revenue of $4.60 billion, a rise of 14% over expected total revenue for 2024. The results sent Dexcom shares up greater than 6% in premarket trading on Monday, suggesting they were a welcome sign for investors after some time rocky quarters.
- Shorten on Tuesday announced Mayo Clinic will provide its AI-powered clinical documentation technology to roughly 2,000 clinicians across the organization. The company has made similar company-wide announcements Duke Health And Johns Hopkins Medicine in the previous couple of weeks.
- Teladoc Health on Monday announced Amazon is adding the corporate to its Health Benefits Connector, which allows customers to find out whether their insurance plan or employer advantages cover a digital health program. Teladoc's offerings for chronic conditions resembling diabetes, hypertension, prediabetes, and weight management programs are made available to eligible users through the Health Benefits Connector.
It's only Tuesday, which suggests there's more to return. Stay up up to now with our coverage all week long!
Feel free to send suggestions, suggestions, story ideas and data to Ashley at ashley.caroot@nbcuni.com.
Large employers are turning to nutrition programs to combat GLP-1 costs
The boom in GLP-1 demand is Strengthening employer-focused diabetes and nutrition consulting corporations How Virta Health And Omada Health. Large employers are increasingly requiring staff starting expensive diabetes and weight-loss medications to enroll in programs that help them learn how one can maintain their weight reduction once they stop taking GLP-1.
One trend to regulate: Employers sometimes receive smaller discounts on treatments from pharmacy profit managers and manufacturers when making the most of nutrition programs, in keeping with the Purchaser Business Group on Health.
You can all the time send suggestions, suggestions, story ideas and data to Bertha at bertha.coombs@nbcuni.com.
image credit : www.cnbc.com
Leave a Reply