GLP-1, Brian Thomson murder looms over JPM Health

San Francisco, famous for its hoodie-wearing tech workers, was swarmed by thousands of suit-clad executives this week. JP MorganAnnual Healthcare Conference.

Leaders from major health systems, venture capital firms, and companies from around the world gathered in the hotel lobby to discuss business and strategy for 2025. While the sunny skies were a welcome relief from the heavy rains of the past few years, other absences were hard to ignore.

This year’s conference, colloquially known as JPM, was held one month after UnitedHealthcare CEO Brian Thompson was shot and killed in New York City. The news was welcomed by Americans, with numerous social media posts expressing outrage at the medical industry, many of whom shared stories of negative experiences with insurance companies.

More than 10 companies including Signa and walgreensAccording to CNBC, which analyzed the conference agenda, he subsequently canceled his appearance at JPM. There was a significant police presence at the Westin St. Francis Hotel, the conference’s main venue, and many companies have increased security for private events and parties.

“The underground topic that people are talking about over water and cocktails is obviously what happened to the CEO of United Healthcare,” said Weili Xiao, president of metabolic health startup Omada. spoke. “What does that mean for healthcare? What changes should occur? And how can things become more responsible?”

Thompson’s murder was a “stunning and sad event” and a wake-up call for the health care industry, said Eric Wexler, CEO of Providence, a nonprofit health care system with 51 hospitals and 1,000 clinics in seven states. said the CEO. .

“Why are we going our separate ways here? Why are we fighting?” Wexler said. “Our job, whether you’re a payor or a hospital, is to do good for those who desperately need us at the most important times in their lives.”

While Thompson’s death loomed large over the conference, there was also palpable excitement and talk about 2025. There’s no shortage of discussion about the potential benefits of artificial intelligence and a blockbuster weight-loss drug called GLP-1, and investors seem cautiously optimistic. The digital health market may be turning a corner.

“There are a lot of amazing things happening in the medical field,” he said. dexcom CEO Kevin Thayer.

“Pharmaceutical companies and companies like us are working hard to improve people’s lives and making a big difference,” said Thayer, who knows Thompson well. “Be a little optimistic, give yourself some rest. We’re all trying to do good.”

Here are CNBC’s key takeaways from JPM 2025.

Generative AI has become a hot topic

Generative AI is undoubtedly the “it girl” of healthcare in 2024, and that is unlikely to change in 2025.

As the U.S. health care system struggles to combat burnout, staffing shortages and razor-thin margins, companies are rushing to develop AI tools that can streamline some of the industry’s tedious administrative tasks. It was virtually impossible to avoid this theme at JPM.

For example, medical payment companies Waystar announced a new generative AI feature aimed at helping physicians quickly address insurance denials by automatically drafting appeal letters. Amazon Web Services and venture firm General Catalyst announced a new partnership aimed at accelerating the development and deployment of healthcare AI tools. Healthcare startup Abridge announced Mayo Clinic will roll out its AI-powered clinical documentation technology to approximately 2,000 clinicians across the company.

“At the highest level, I don’t think you can underestimate how much impact AI is already having on healthcare,” said Dr. Shiv Rao, Founder and CEO of Abridge. “At least in our field, the feedback we receive every day is incredible and the adoption rate shows this is real.”

NvidiaManufacturing hardware that powers AI applications was a particularly popular attendee at this year’s JPM. The company announced partnerships with several medical institutions, including clinical research providers IQVIAneurotech startup Synchron, and genomics company Illumina and Mayo Clinic, an academic medical center.

“Between our direct revenue and our partner revenue, we have well over $1 billion in business,” said Kimberly Powell, Nvidia’s vice president of healthcare. She added that NVIDIA believes there is room for further growth in AI healthcare applications.

Management is bullish on GLP-1

CNBC spoke with executives at presentations and cocktail parties this week who marveled at the benefits of the fast-growing weight loss drug known as GLP-1.

novo nordisk and Eli Lilly’s Diabetes and obesity treatments have had great success in recent years in helping patients lose weight. For example, a May study found that patients who took Novo’s obesity drug Wigovy maintained an average weight loss of 10% for up to four years.

Research shows that GLP-1 may also be useful in treating cardiometabolic diseases, kidney disease, addiction, and more. In December, the U.S. Food and Drug Administration approved Lilly’s weight-loss drug Zepbound to treat sleep apnea.

Some analysts estimate that anti-obesity drugs could grow into a $100 billion industry by the end of the decade.

“These drugs are remarkable, and they’re not going away,” Dexcom’s Thayer said.

The lack of supply is a major hurdle for companies in the market, as soaring demand has made it difficult for many patients to receive treatment. The drug typically costs $1,000 per month without insurance, and coverage remains variable for many Americans.

Still, many health industry executives are optimistic that GLP-1 will meaningfully improve public health in the United States.

“Just kidding, it’s two Gs, right? It’s like GLP, GPT,” said Omada CEO Sean Duffy.

Uncertainty surrounding the Trump administration

Ahead of President-elect Donald Trump’s inauguration on Monday, JPM executives had many unanswered questions about what the administration has in store for the health care sector.

President Trump did not make health care a major focus during his campaign, meaning his policy goals for the industry are vague. Additionally, he has made several controversial cabinet picks since his election.

President Trump has appointed Robert F. Kennedy Jr., a vaccine skeptic, to head the Department of Health and Human Services, Dr. Mehmet Oz, a famous TV host, to head the Centers for Medicare and Medicaid Services, and the Food and Drug Administration. Pancreatic surgeon Marty McCurry was appointed as the person in charge. . All three nominees still require Senate confirmation.

“Unless we have a little more visibility into this administration in the U.S., markets will be volatile and slightly depressed,” Rebecca Stevenson, head of Americas healthcare investment banking at HSBC, told reporters. . round table.

Owen Tripp, CEO of virtual care platform Included Health, said the Trump administration appears to be business-friendly and has signaled a push to expand access to care. said.

“It’s less about who’s in the White House and more about the fact that we actually have a Republican Congress and Senate that are aligned in principle on expanding access and transparency,” Tripp said. “I think there will be more transparency in drug pricing and health care pricing, which is also a very good thing.”

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