GLP-1s, Brian Thomson’s kill is coming to JPM Health

This week, San Francisco, famous for its large number of tech workers in hoodies, was overrun by thousands of executives in suits for JPMorganannual health conference.

Executives from major healthcare systems, venture capital firms and companies around the world gathered in hotel lobbies to discuss business and strategy for 2025. The sunny skies were a welcome respite from previous years’ downpours, but other absences were harder to ignore.

This year’s conference, known colloquially as JPM, comes a month after UnitedHealthcare CEO Brian Thompson was fatally shot in New York. Americans greeted the news with numerous messages on social networks expression of resentment yes health care industrywith many sharing stories about their negative experiences with insurers.

More than 10 companies, incl Swan and Walgreenssubsequently withdrew from speaking at JPM, according to a CNBC analysis of the conference agenda. At the main conference venue, the Westin St. Francis, there was a noticeable police presence, and many companies stepped up security for their private events and parties.

“The subtext that I think people are talking about around water and shakes is obviously what happened to the CEO of UnitedHealthcare,” said Wei-Li Shao, president of metabolic health startup Omada. “What does this mean for health care? What transformations need to happen? And how do things become more accountable?”

Thompson’s killing was a “shocking, sad event” that sent a wake-up call to the health care industry, said Eric Wexler, CEO of the nonprofit Providence Health System, which has 51 hospitals and 1,000 clinics in seven states. .

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

While Thompson’s death loomed over the conference, there was also palpable excitement and buzz around 2025. There was no shortage of discussion about the potential benefits artificial intelligence and popular weight-loss drugs called GLP-1s, and investors seem cautiously optimistic that the digital health market could turn the corner.

“There are so many amazing things on the horizon for health care,” he said Dexcom CEO Kevin Sayer.

“Drug companies and companies like ours, we’re really trying to make people’s lives better, and we’re making a big difference,” said Sayer, who knew Thompson well. “Be a little optimistic and give us a break, we’re all trying to do good things.”

Here are CNBC’s key takeaways from JPM 2025:

Generative artificial intelligence has become mainstream

Generative AI was undoubtedly the “girl in healthcare” in 2024, and it looks unlikely that will change in 2025.

As U.S. health care systems struggle with burnout, understaffing and abysmal profitability, companies are racing to develop artificial intelligence tools that can streamline some of the industry’s more tedious administrative tasks. At JPM, this topic was almost impossible to avoid.

For example, a company for the payment of medical services Road star announced a new generative function of artificial intelligence, which is aimed at prompt assistance to doctors deal with insurance denials automatic compilation of appeals. Amazon Web Services and venture capital firm General Catalyst announced a new partnership aimed at accelerating the development and deployment of AI tools for healthcare. Healthcare startup Abridge announced Mayo Clinic to release its AI-powered system clinical documentation technology approximately 2,000 clinicians across the enterprise.

“At the highest level, I don’t think it can be underestimated how big of an impact AI is already having on healthcare,” said Dr. Shiv Rao, founder and CEO of Abridge. “At least in our segment, the feedback we’re getting on a daily basis is just incredible, and the level of adoption shows it’s real.”

Nvidiawhich makes the hardware that powers AI applications, was a particularly popular JPM attendee this year. The company has announced partnerships with several healthcare organizations, including a clinical research provider IQVIAneurotech startup Synchron, a genome company Illumina and Mayo Clinic Academic Medical Center.

“Our business is well over a billion dollars between direct revenue and revenue from our partners,” said Kimberly Powell, Nvidia’s vice president of healthcare. She added that Nvidia sees more opportunities for AI healthcare applications to grow.

Executives are optimistic about GLP-1

At presentations and cocktail parties this week, CNBC spoke with executives who were surprised by the benefits of an emerging class of weight-loss drugs known as GLP-1.

Nova Nordisk and Eli Lilly Diabetes and obesity treatments have seen wild success in helping patients lose weight in recent years. A Can study found that patients take NewFor example, the anti-obesity drug Wegovy provided an average weight reduction of 10% over four years.

Research shows that GLP-1 may also help treat cardiometabolic disease, kidney disease, and addiction, among other conditions. In December, the US Food and Drug Administration approved Lilly’s weight loss drug Zepbound as a treatment for sleep apnea.

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

“These medications are great, and they’re not going away,” Dexcom’s Sayer said.

The shortage of supply is one of the big obstacles for companies in the market, as the sharp demand has made it difficult for many patients to access treatment. The drug typically costs $1,000 a month without insurance, and coverage still varies for many Americans.

Despite this, many medical leaders are optimistic that GLP-1 will significantly improve the health of the US population.

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

Uncertainty surrounding the Trump administration

The elected president is ahead Donald TrumpAt Monday’s inauguration, JPM executives had many unanswered questions about what his administration has in store for the health sector.

Health care was not a focus of Trump’s campaign, which means his policy goals in this area are vague. Also, he made some controversial cabinet selection after the election.

Trump is a designated vaccine skeptic Robert F. Kennedy Jr to run the Department of Health and Human Services, a famous TV presenter Dr. Mehmet Oz manage the Centers for Medicare & Medicaid Services and a pancreatic surgeon Dr. Marty Macari to head the Food and Drug Administration. All three nominees still need to be confirmed by the Senate.

“Until we see more of this administration coming into the US, the market will be volatile and more depressed,” Rebecca Stevenson, head of Americas healthcare investment banking at HSBC, told reporters. round table.

Owen Tripp, CEO of virtual health care platform Included Health, said the Trump administration appeared business-friendly and suggested he would push for more access to health care.

“It’s not even so much who’s in the White House as it is that you have a Republican Congress and a Senate that fundamentally supports increased access and transparency,” Tripp said. “I think you’re going to see more transparency in the pricing of drugs and health services, which is also very positive.”

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