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Hello from San Francisco! This week Ashley and I are attending the annual JPMorgan Health Care Conference – the largest gathering of biotech and pharma executives, investors and analysts in the United States
The conference provides an impetus for what to expect from the healthcare industry in 2025. Executives from companies large and small provided their key business and drug pipeline updates, but also 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 year's conference appears to have increased security around the main venue – the Westin St. Francis Hotel – in light of the assassination of Brian Thompson, the CEO of UnitedHealth Group's insurance division, in New York City. There appears to be a squad of police officers stationed around the hotel, and metal barriers line the venue's entrances, flanked by several private security guards checking visitors' IDs.
Meanwhile, a group of protesters waited outside the venue holding signs sharply critical of the insurance industry, which has seen an outburst of pent-up public anger and frustration since the killing.
As usual, the conference started with a few deals, including one of the largest deals we've seen since the end of 2023.
Here's a quick summary of what I've seen so far in the biotech and pharma space:
- Johnson & Johnson stole the show when it announced Monday that it would 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 did not exceed $5 billion in 2024, and the J&J acquisition appeared to boost M&A sentiment in the new year, particularly among a likely deal- friendly Trump administration.
- Eli Lilly announced Monday that it would acquire an experimental cancer program from startup Scorpion Therapeutics in a deal worth up to $2.5 billion, as 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 acquire another private cancer drug developer, IDRx. The agreement enables GSK to provide an experimental treatment for a rare gastrointestinal cancer
- Modern On Monday, the company lowered its 2025 revenue forecast by about $1 billion due to some potential headwinds later this year, including increasing competition in the Covid vaccine market as the biotech continues to cut costs.
- Eli Lilly On Tuesday, the company cut its sales forecast as it said demand for its weight-loss and diabetes drugs would not meet its high expectations.
Feel free to send tips, 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 at 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 loss drugs known as GLP-1 are on everyone's lips.
Here's everything you need to know so far:
- Amazon Web services and General Catalyst announced Monday a new partnership aimed at accelerating the development and deployment of AI tools for healthcare. General Catalyst's portfolio companies, starting with Aidoc and Commure, will use AWS to accelerate new solutions for healthcare systems. Read CNBC's coverage here.
- Waystar announced a new generative AI feature designed to help hospitals quickly address insurance denials by automatically writing dispute letters. Health systems spend nearly $20 billion each year reversing denied claims. Therefore, Waystar believes its new tool can 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 more than $1 billion in revenue each year, said Kimberly Powell, Nvidia's vice president of healthcare, in an interview with CNBC.
- Dexcom reported preliminary, unaudited fourth-quarter results on Monday, about a month ahead of schedule. The company reported revenue of at least $1.11 billion, up 8% from the same period last year. For 2025, Dexcom expects total revenue of $4.60 billion, an increase of 14% over expected total revenue for 2024. The results sent Dexcom shares up more than 6% in premarket trading on Monday, suggesting they were a welcome sign for investors after a difficult few quarters.
- Shorten announced Tuesday that Mayo Clinic will roll out its AI-powered clinical documentation technology to approximately 2,000 clinicians across the organization. The company has made similar company-wide announcements with Duke Health and Johns Hopkins Medicine in recent weeks.
- Teladoc Health On Monday, Amazon announced it was adding the company to its Health Benefits Connector, which allows customers to determine whether their insurance plan or employer benefits cover a digital health program. Teladoc's offerings for chronic conditions such as diabetes, hypertension, prediabetes, and weight management programs are made available to eligible users through the Health Benefits Connector.
It's only Tuesday, which means there's more to come. Stay up to date with our coverage all week long!
Feel free to send tips, 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 spurring employer-focused businesses such as diabetes and nutritional counseling Virta Health And Omada Health. Large employers are increasingly requiring workers starting expensive diabetes and weight-loss medications to enroll in programs that help them learn how to maintain their weight loss once they stop taking GLP-1.
One trend to keep an eye on: Employers sometimes receive smaller discounts on treatments from pharmacy benefit managers and manufacturers when taking advantage of nutrition programs, according to the Purchaser Business Group on Health.
You can always send tips, suggestions, story ideas and data to Bertha at bertha.coombs@nbcuni.com.
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