GLP-1, Brian Thomson’s kill looms large at JPM Health

San Francisco, famous for its abundance of hoodie-wearing tech workers, was overrun by thousands of costumed executives this week for JPMorganAnnual Health Care Conference.

Leaders from major health systems, venture capital firms and companies around the globe gathered in hotel lobbies to talk business and strategy for 2025. The sunny skies were a welcome respite from the downpours of years past, but the shortages others were harder to ignore.

This year’s conference, known as JPM, took place a 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 displeasure with the health care industry, with many recounting their negative experiences with insurers.Â

More than 10 companies, incl Cygnus AND Walgreensthen withdrew their JPM appearances, according to CNBC’s analysis of the conference agenda. There was a noticeably heavy police presence at the conference’s main venue, the Westin St. Francis, and many companies beefed up security at their private events and parties.Â

“The underlying theme that I think people are talking about around water and cocktails is definitely 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 transformation needs to happen? And how do things become more responsive?”

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

“Why are we on a particular path 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 large during the conference, there was also palpable excitement and buzz about 2025. There was no shortage of discussion about the potential benefits of artificial intelligence and a weight-loss drug called GLP-1, and investors seem cautiously optimistic. that the Digital Health Market may be turning a corner. Â

“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 try hard to improve people’s lives and we make 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 highlights from JPM 2025:

Generative AI stole the show

Generative AI was clearly the healthcare “girl” of 2024, and that looks unlikely to change in 2025.Â

US health systems are struggling to deal with burnout, staff shortages and tight margins, so companies are racing to develop AI tools that can simplify some of the industry’s most tedious administrative tasks. The topic was virtually impossible to avoid at JPM.Â

For example, the health care payment company Waystar announced a new AI-generating feature aimed at helping doctors quickly fight insurance denials by automatically drafting appeal letters. Amazon Online Services and venture firm General Catalyst announced a new partnership aimed at accelerating the development and deployment of healthcare artificial intelligence tools. Healthcare startup Abridge announced that Mayo Clinic will roll out its AI-powered clinical documentation technology to about 2,000 physicians across the enterprise.

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

Nvidiawhich makes the hardware that powers AI applications, was a particularly popular attendee at JPM this year. The company announced partnerships with several healthcare organizations, including the clinical research provider IQVIAneurotech startup Synchron, genomics company Illumina and Mayo Clinic academic medical center.Â

“We have a business of over a billion dollars between direct revenue and revenue with our partners,” said Kimberly Powell, Nvidia’s vice president of healthcare. She added that Nvidia sees more room for growth for AI healthcare applications.

Drivers are Bulgarian for GLP-1sÂ

At presentations and cocktail parties this week, CNBC spoke with executives who raved about the benefits of the burgeoning class of weight-loss drugs known as GLP-1.

Novo Nordisk’s AND at Eli Lilly Diabetes and obesity treatments have been extremely successful in helping patients lose weight in recent years. A May study found that patients taking Novo’s obesity drug Wegovy maintained an average of 10% weight loss for up to four years, for example.Â

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

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

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

The lack of supply is one of the biggest obstacles for companies in the market, as growing demand has made it difficult for many patients to access treatments. The drugs typically cost $1,000 a month without insurance, and coverage still varies for many Americans.

However, many health care leaders are optimistic that GLP-1 will significantly improve public health in the US

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

Uncertainty around the Trump administration

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

Health care was not a big focus for Trump on the campaign trail, meaning his policy intentions for the industry are murky. In addition, he has made some controversial cabinet choices since the election.Â

Trump nominated vaccine skeptic Robert F. Kennedy Jr. to lead the Department of Health and Human Services, famous TV host Dr. Mehmet Oz to lead the Centers for Medicare & Medicaid Services and pancreatic surgeon Dr. Marty Makary to lead the Food and Drug Administration. . All three candidates still need Senate confirmation

“Until we get a little more visibility into this administration coming into the US, the market is going to be volatile and somewhat more bearish,” Rebecca Stevenson, HSBC’s head of healthcare investment banking for the Americas, told reporters. a round table.Â

Owen Tripp, CEO of virtual care platform Included Health, said the Trump administration appears to be business-friendly and has suggested it will push for increased access to care.

“It’s not so much who’s in the White House, but the fact that you have a Republican Congress and Senate that are fundamentally aligned with expanding access and transparency,” Tripp said. “I think you’re going to see more transparency on the price of drugs and the price of health care, which is also extremely positive.”

View: The United Healthcare tragedy is a wake-up call for corporate America, says Wharton’s Americus Reed