GLP-1s, Brian Thomson killing loom large at JPM Health

San Francisco, well-known for its abundance of hoodie-clad tech employees, was swamped this week by 1000’s of suit-wearing executives. JPMorgan‘s annual healthcare convention.

Leaders from main healthcare techniques, enterprise capital corporations and companies world wide gathered in resort lobbies to speak enterprise and 2025 technique. The sunny skies had been a welcome aid after the downpours of latest years, however different absences had been more durable to disregard.

This yr’s convention, colloquially referred to as JPM, happened a month after UnitedHealthcare CEO Brian Thompson was fatally shot in New York Metropolis. The information was welcomed by People with quite a few social media posts expressing resentment towards the well being care system, with many sharing tales of their adverse experiences with insurers.

Greater than 10 firms together with Cigna And Wal greenssubsequently withdrew their appearances at JPM, in line with CNBC’s evaluation of the convention agenda. There was a noticeably massive police presence on the convention’s major venue, the Westin St. Francis Lodge, and plenty of companies elevated safety at their personal occasions and events.

“The underground subject I believe individuals are speaking about across the water and cocktails is clearly what occurred to the CEO of UnitedHealthcare,” says Wei-Li Shao, president of metabolic well being startup Omada. “What does that imply for healthcare? What transformation ought to happen? And the way can issues change into extra accountable?”

Thompson’s killing was a “beautiful, unhappy occasion” that has served as a wake-up name for the well being care business, mentioned Erik Wexler, CEO of the nonprofit well being care system Windfall, which consists of 51 hospitals and 1,000 clinics throughout seven states . .

“Why are we right here on a special path? Why are we preventing?’ Wexler mentioned. “Our job is to do good for individuals who desperately want us at an important time of their lives, whether or not you’re the payer or the hospital.”

Whereas Thompson’s loss of life loomed massive on the convention, there was additionally palpable pleasure and buzz about 2025. There was no scarcity of debate concerning the potential advantages of synthetic intelligence and the hit weight-loss medicine known as GLP-1s, and buyers appear cautiously optimistic that the The digital healthcare market could possibly be turning a nook.

“There are such a lot of superb issues on the horizon for healthcare,” he mentioned Dexcom CEO Kevin Sayer.

“Drug firms and corporations like ours, we do our perfect to enhance folks’s lives, and we make an enormous distinction,” mentioned Sayer, who knew Thompson properly. “Be just a little optimistic and provides us some relaxation, we’re all making an attempt to do good issues.”

Listed below are CNBC’s key takeaways from JPM 2025:

Generative AI stole the present

Generative AI was undoubtedly the healthcare “it lady” of 2024, and this appears unlikely to vary in 2025.

US healthcare techniques are combating burnout, workers shortages and razor-thin margins. That is why firms are speeding to develop AI instruments that may streamline among the business’s extra tedious administrative duties. At JPM the topic was just about unavoidable.

For instance, a healthcare cost firm Wegster has introduced a brand new generative AI characteristic that may assist docs rapidly fight insurance coverage denials by mechanically drafting enchantment letters. Amazon Internet Companies and enterprise capital agency Common Catalyst have introduced a brand new partnership that goals to speed up the event and deployment of AI instruments for healthcare. Healthcare startup Abridge has introduced that Mayo Clinic will roll out its AI-powered scientific documentation expertise to roughly 2,000 physicians throughout the enterprise.

“On the highest stage, I do not suppose we will underestimate how a lot of an impression AI is already having in healthcare,” says Dr. Shiv Rao, Founder and CEO of Abridge. “At the very least in our phase, the suggestions we get each day is simply unimaginable, and the adoption fee reveals that this actually exists.”

Nvidiawhich makes the {hardware} that powers AI functions, was a very fashionable participant at JPM this yr. The corporate introduced partnerships with a number of healthcare organizations, together with the scientific analysis supplier IQVIAneurotech startup Synchron, genomics firm Illumina and Mayo Clinic tutorial medical middle.

“We’re value properly over a billion {dollars} between direct gross sales and gross sales with our companions,” mentioned Kimberly Powell, Nvidia’s vp of healthcare. She added that Nvidia sees extra room for development for AI functions in healthcare.

Executives are optimistic about GLP-1s

Throughout shows and cocktail events this week, CNBC spoke with executives who marveled at the advantages of the booming class of weight-loss medicine referred to as GLP-1s.

Novo Nordisk And by Eli Lilly Remedies for diabetes and weight problems have been extraordinarily profitable in serving to sufferers drop some pounds lately. A Might research discovered that sufferers taking Novo’s weight problems drug Wegovy, for instance, maintained a mean of 10% weight reduction for as much as 4 years.

Analysis reveals that GLP-1s may assist deal with cardiometabolic illnesses, kidney illness and dependancy, amongst different circumstances. The U.S. Meals and Drug Administration in December accredited Lilly’s weight-loss drug Zepbound as a remedy for sleep apnea.

Some analysts estimate that weight problems medicine may develop right into a $100 billion business by the top of the last decade.

“These medicine are outstanding and they aren’t going away,” Dexcom’s Sayer mentioned.

A scarcity of provide is among the largest hurdles for firms out there as rising demand has made it tough for a lot of sufferers to entry the therapies. With out insurance coverage, the medicine usually value $1,000 per thirty days, and protection nonetheless varies for a lot of People.

Nonetheless, many healthcare executives are optimistic that GLP-1s will meaningfully enhance public well being within the US

“I used to be joking, it was the 2 G’s, proper? It is like GLP, GPT,” mentioned Omada CEO Sean Duffy.

Uncertainty surrounding the Trump administration

Forward of President-elect Donald Trump’s inauguration on Monday, executives at JPM had many unanswered questions on what his administration has in retailer for the well being care business.

Healthcare was not a significant focus for Trump throughout his marketing campaign, which means his coverage objectives for the sector are unclear. Furthermore, he has made various controversial cupboard decisions for the reason that elections.

Trump nominated vaccine skeptic Robert F. Kennedy Jr. as head of the Division of Well being and Human Companies, well-known TV host Dr. Mehmet Oz as head of the Facilities for Medicare & Medicaid Companies and pancreatic surgeon Dr. Marty Makary as head of the Meals and Drug Administration. All three nominees nonetheless require Senate affirmation.

“Till we now have just a little bit extra visibility into this administration coming to the U.S., the market goes to be unstable and just a little extra depressed,” Rebecca Stevenson, head of healthcare funding banking for the Americas at HSBC, informed reporters at a information convention. a spherical desk.

Owen Tripp, the CEO of digital care platform Included Well being, mentioned the Trump administration seems business-friendly and has instructed it is going to push for higher entry to care.

“It is not even a lot about who’s within the White Home, it is about the truth that you’ve gotten a Republican Congress and Senate which can be mainly dedicated to growing entry and transparency,” Tripp mentioned. “I believe you may additionally see extra transparency round drug pricing and well being care, which can also be an enormous constructive.”

Watch: The UnitedHealthcare tragedy is a wake-up name for company America, says Wharton’s Americus Reed