In this week’s edition of InnovationRx, we explore the repercussions of Medicaid cuts, a $400 million investment in obesity research, a study on bias in clinical AI, Amgen’s AI hire from Nike, and more. To receive it directly in your inbox, subscribe here.
Looming Medicaid cuts pose a threat to maternal health.
The House of Representatives and the Senate have both agreed to a budget framework that includes spending cuts to fund tax cuts benefitting the wealthy, as well as increased spending for Trump’s immigration policies. These cuts are expected to impact Medicaid significantly, with up to $880 billion in cuts over the next decade, amounting to a 29% reduction.
One area affected by these cuts is maternal healthcare, with potential changes to Medicaid work requirements endangering insurance coverage for as many as five million people. This could lead to decreased revenue for hospitals, particularly in rural areas where a significant portion of patients rely on Medicaid. Family caregivers and long-term care for the elderly are also at risk.
Andrea Ippolito, Founder of Simplifed, emphasized the negative repercussions of Medicaid cuts on women and children’s health, highlighting the potential increase in costs for the healthcare system in the long term. She stressed the importance of improving access to care to enhance health outcomes and contain costs.
Read more about this story and more in this week’s edition of InnovationRx.
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This Pharma Company Is Betting Big On A Chinese Ozempic Rival
In the summer of 2023, Dr. Amir Zamani discovered a promising obesity drug in the portfolio of Jiangsu Hengrui Pharmaceuticals, a major Chinese pharmaceutical company. Results from Phase II clinical trials in China showed promising weight loss results with mild side effects, potentially benefiting severely obese patients who require significant weight loss.
Chinese drug development has shifted towards innovation in recent years, with U.S.-trained Chinese scientists leading the charge. This shift has attracted significant investments from American companies, with Kailera Therapeutics receiving $400 million in funding to bring Hengrui therapies to market.
To lead Kailera, the investors appointed Ron Renaud, a seasoned biotech executive with a successful track record in building and selling biotech startups.
Read more about this exciting development here.
BIOTECH AND PHARMA
The FDA recently approved the combination of Opdivo and Yervoy, developed by Bristol Myers Squibb, for the treatment of liver and colorectal cancers. This combination therapy has shown significant benefits in reducing disease progression and mortality rates in clinical trials.
DIGITAL HEALTH AND AI
Amgen’s first chief technology officer, Dr. David Reese, hired a head of artificial intelligence with a background in consumer products, finance, and other industries, ultimately finding the perfect candidate at Nike. In August of last year, Amgen hired Sean Bruich, who had previously worked at Nike for 11 years, as senior vice president for AI and data, a move that may have seemed out of place at first glance.
Amgen, based in Thousand Oaks, California, is following in the footsteps of other pharmaceutical companies and biotech startups by leveraging AI to accelerate drug discovery and improve operational efficiency. However, the challenge lies in attracting top talent in AI, as most of the experts are currently not within the healthcare industry. According to Reese, most of the talent in AI is found outside of biopharma.
In other news, Science Corp., a medtech company founded by Neuralink cofounder Max Hodak, recently secured a $104 million investment round led by Khosla Ventures. The company focuses on developing brain-related technologies, including brain-computer interfaces and a retinal implant for vision restoration.
A new study published in Nature Medicine revealed that medical large language models make decisions based on socioeconomic factors rather than just medical necessity. The study found that AI models recommended better care for white, wealthy patients and basic care for others, leading to potential health disparities.
Attovia Therapeutics raised $90 million for early-stage clinical trials targeting chronic pruritus and atopic dermatitis. This funding round marks the company’s third in two years, bringing its total funding to $255 million.
In the realm of public health and hospitals, challenges persist as federal health agencies face chaos and questions about their functionality. Mehmet Oz outlined his vision for leading the Center of Medicare and Medicaid Services, while the deep cuts to HHS threaten the agency’s IT infrastructure and datasets.
Overall, the healthcare industry continues to grapple with issues ranging from biased AI algorithms to innovative treatments for various conditions. It’s a complex landscape where technology, funding, and regulatory challenges intersect to shape the future of healthcare. Please rewrite this sentence.
