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

San Francisco, famous for its abundance of tech workers in hoodies, was overrun by thousands of executives in suits this week for JPMorganthe annual health conference.

Executives from the world’s leading health systems, venture capital firms and companies gathered in hotel lobbies to talk about business and strategy for 2025. The sunny skies were a recognition of the ‘water of the past years, but the other absences were more difficult to ignore.

This year’s conference, known as JPM, came a month after UnitedHealthcare CEO Brian Thompson was shot dead in New York City. The news was welcomed by Americans with numerous social media posts expressing resentment towards the health industrywith many sharing stories about their negative experiences with insurers.

More than 10 companies, incl Swan and Walgreenssubsequently pulled his appearances at JPM, according to CNBC’s analysis of the conference agenda. There was a noticeably large police presence at the conference’s main venue, the Westin St. Francis, and many companies have strengthened security in their private events and parties.

“The underlying theme that I think people are talking about around water and cocktails 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 responsive?”

Thompson’s killing was a “shocking and sad event” that served as a wake-up call for 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 separate paths 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, both the payer and the hospital.”

While Thompson’s death loomed large over 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 blockbuster weight-loss drugs called GLP-1, and investors seem cautiously optimistic that the digital health market could turn a 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 really try hard to improve people’s lives, and we make a big difference,” said Sayer, who knows Thompson well. “Be a little optimistic and give us a break, we’re all trying to do good things.”

Here are CNBC’s big takeaways from JPM 2025:

Generative AI stole the show

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

Healthcare systems in the United States are struggling to deal with burnout, staff shortages and thin margins, so companies are racing to develop AI tools that can simplify some of the industry’s most tedious administrative tasks. The subject was practically impossible to avoid at JPM.

For example, the company pays for health Waystar announced a new generative AI feature that aims to help doctors quickly fight insurance denials automatically writing appeal letters. Amazon Web Services and the company General Catalyst announced a new collaboration that aims to accelerate the development and implementation of health AI tools. Health startup Abridge announced The Mayo Clinic will launch its artificial intelligence clinical documentation technology to approximately 2,000 clinicians across the enterprise.

“At the highest level, I don’t think it can be underestimated how much 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 every day 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 has announced partnerships with several healthcare organizations including the clinical research provider IQVIAneurotech startup Synchron, genomics company Illuminates and Mayo Clinic academic medical center.

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

Executives are bullish on GLP-1

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

Novo Nordisk and by Eli Lilly Diabetes and obesity treatments have been very successful in helping patients lose weight in recent years. A He can study found that patients take NewWegovy’s obesity drug maintained an average of 10% weight loss for four years, for example.

Research shows that GLP-1s 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 medications 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 Sayer said.

The shortage of supply is one of the major obstacles for companies in the market, since the growing demand has made it difficult for many patients to access the treatments. The drug typically costs $1,000 per month without insurance, and coverage also varies for many Americans.

Even so, many health leaders are optimistic that GLP-1 will significantly improve public health in the United States

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

Uncertainty around the Trump administration

Before the president-elect Donald TrumpAt Monday’s inauguration, JPM leaders had many unanswered questions about what their administration has in store for the health sector.

Health care wasn’t a big focus for Trump on the campaign trail, which means his policy goals for the industry have faded. Also, he did some controversial cabinet picks since the election.

Trump appointed vaccine skeptic Robert F. Kennedy Jr. to lead the Department of Health and Human Services, TV celebrities Dr. Mehmet Oz to lead the Centers for Medicare and Medicaid Services and the pancreatic surgeon Dr. Marty Macary to lead the Food and Drug Administration. All three nominees still need Senate confirmation.

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

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

“It’s not even so much who’s in the White House, but actually 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 drug prices and even health care prices, which is also very positive.”

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