JPM conference brings a flurry of deals

VIEW IN BROWSER | SUBSCRIBE TUE, JAN 14, 2025 EDITOR'S NOTE Think a friend or colleague should be getting this newsletter? Share this link with them to sign up. Good afternoon from San Francisco! This week, Ashley and I are attending the annual JPMorgan Health Care Conference – the largest gathering of biotech and pharma execs, investors and analysts in the U.S. The conference is a pulse for what to expect from the health-care industry in 2025. Executives from companies large and small highlighted 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.  Notably, the conference appears to have beefed up security around the main venue – the Westin St. Francis Hotel – this year in light of the killing of Brian Thompson, the CEO of UnitedHealth Group's insurance arm, in New York City in December. Cluster of cops appear to be stationed in the area surrounding the hotel and metal barriers line the entrances of the venue, which are flanked by several private security guards checking badges of attendees.  Meanwhile, a group of protesters waited outside the venue, clutching signs that slam the insurance industry, which has faced an eruption of pent-up anger and frustration from the public since the killing.  As usual, the conference kicked off with a few deals, including one of the largest deals we've seen since late 2023.  Here's a quick recap of what I've seen in the biotech and pharma space so far:  Johnson & Johnson stole the show when it announced Monday it will buy Intra-Cellular Therapies, the maker of a blockbuster drug for schizophrenia and depression, for $14.6 billion. Most, if not all, of the deals in the biotech and pharma space in 2024 did not surpass $5 billion, and J&J's acquisition appeared to boost the sentiment for M&A in the new year, especially under a likely deal-friendly Trump administration.  Eli Lilly said Monday it would acquire an experimental cancer program from startup Scorpion Therapeutics in a deal worth up to $2.5 billion, as the pharmaceutical giant broadens its oncology pipeline. The company will acquire Scorpion's experimental oral therapy, STX-478, which is currently being tested in early-stage trials for breast cancer and other advanced solid tumors. GSK on Monday also announced a $1 billion deal to acquire another privately held cancer drug developer, IDRx. The agreement gives GSK an experimental treatment for a rare gastrointestinal cancer Moderna on Monday lowered its 2025 sales guidance by roughly $1 billion due to a few potential headwinds later this year, including increased competition in the Covid vaccine market, as the biotech company continues to slash costs. Eli Lilly on Tuesday cut its revenue guidance as it said demand for its weight loss and diabetes drugs would not meet its high expectations.  Feel free to send any tips, suggestions, story ideas and data to Annika at annikakim.constantino@nbcuni.com. Latest in health-care tech Hello from San Francisco! I'm reporting on the ground at the JPMorgan Health Care Conference where it's a balmy 50 degrees, a welcome change for this New Yorker.   There's already been a blitz of announcements here. Perhaps unsurprisingly, artificial intelligence and the blockbuster weight loss drugs known as GLP-1s are the talk of the town.  Here's everything you need to know so far: Amazon Web Services and General Catalyst announced a new partnership on Monday that aims to speed up the development and deployment of health-care AI tools. General Catalyst's portfolio companies, starting with Aidoc and Commure, will use AWS to build new solutions for health systems more quickly. Read CNBC's coverage here. Waystar announced a new generative AI feature that aims to help hospitals quickly fight insurance denials by automatically drafting appeal letters. Health systems spend nearly $20 billion a year trying to overturn denied claims, so Waystar believes its new tool can help cut these costs. Read CNBC's coverage here. Nvidia announced partnerships with several health-care organizations including the clinical research provider IQVIA, the neurotech startup Synchron, the genomics company Illumina and the academic medical center Mayo Clinic. Partnerships are a key pillar of Nvidia's health-care business, which generates over $1 billion in revenue each year, Kimberly Powell, Nvidia's vice president of health care, told CNBC in an interview.  Dexcom released preliminary, unaudited results for its fourth quarter 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 said it expects to report total revenue of $4.60 billion, a 14% increase over the expected 2024 total. The results caused Dexcom shares to jump more than 6% in premarket trading on Monday, suggesting they were a welcome sign for investors after a couple rocky quarters. Abridge on Tuesday announced Mayo Clinic will roll out its AI-powered clinical documentation technology to around 2,000 clinicians across the entire enterprise. The company has made similar enterprise-wide announcements with Duke Health and Johns Hopkins Medicine in recent weeks. Teladoc Health on Monday announced Amazon is adding the company to its Health Benefits Connector, which helps customers determine if their insurance plan or employer benefits cover a digital health program. Teladoc's chronic condition offerings such as its diabetes, hypertension, pre-diabetes and weight management programs will be surfaced through Health Benefits Connector to eligible users. It's only Tuesday, which means there's still more to come. Be sure to keep up with our coverage throughout the week! Feel free to send any tips, suggestions, story ideas and data to Ashley at ashley.capoot@nbcuni.com. Large employers are turning to nutrition programs to combat GLP-1 costs The boom in GLP-1 demand is boosting employer-oriented diabetes and nutrition counseling businesses like Virta Health and Omada Health. Large employers are increasingly requiring workers who start high-cost diabetes and weight loss drugs to sign up for programs which help them learn how to maintain their weight loss once they stop using GLP-1s. One trend to watch: when they utilize nutrition programs, sometimes employers get lower rebates on the treatments from pharmacy benefit managers and manufacturers, according to the Purchaser Business Group on Health.   Feel free to send any tips, suggestions, story ideas and data to Bertha at bertha.coombs@nbcuni.com.  Annika Kim Constantino | Biotech & Pharmaceutical Reporter @annikakimc   Annika Kim Constantino | Associate Pharmaceutical Reporter @annikakimc   Eli Lilly CEO expects new weight loss pill to be approved next year Eli Lilly and its rivals are working to develop more convenient options than the injectable Zepbound and Wegovy, which dominate the weight loss drug market. - Jacob Pramuk Eli Lilly shares drop as drugmaker cuts revenue guidance on weight loss drug demand Eli Lilly shares dropped after the drugmaker cut its 2024 revenue guidance, citing lower-than-expected demand for its obesity and diabetes drugs. - Annika Kim Constantino,Jacob Pramuk Moderna stock plunges nearly 17% after company lowers 2025 sales forecast by $1 billion Moderna now expects 2025 revenue to come in between $1.5 billion and $2.5 billion, most of which will come in the second half of the year. - Annika Kim Constantino New AI tool for fighting health insurance denials could save hospitals billions, and help patients Waystar announced a new generative AI feature that aims to help hospitals quickly fight insurance denials. - Ashley Capoot AWS and General Catalyst partner to speed up development of health-care AI tools General Catalyst's portfolio companies, starting with Aidoc and Commure, will use AWS' services to build new artificial intelligence solutions. - Ashley Capoot High cost of weight loss drugs drives employers to require nutrition counseling, in boost for startups Startup Virta Health saw 60% revenue growth last year, topping $100 million, driven by demand for its employer weight loss management program. - Bertha Coombs Walgreens shares soar 27% on big earnings beat, as drugstore chain cuts costs Walgreens maintained its fiscal 2025 adjusted earnings guidance, but did not include a sales outlook in its release. - Annika Kim Constantino JOIN US CONTRIBUTORS Ashley Capoot @ashleycapoot Bertha Coombs @berthacoombs Ashley Capoot @ashleycapoot Bertha Coombs @berthacoombs Unsubscribe Digital Products Manage Newsletters Feedback Terms of Service Privacy Policy Join the CNBC Panel © 2025 CNBC LLC. 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