This week in InnovationRx, we explore initiatives to enhance prior authorization, the commercialization of Bell Labs’ IP portfolio, a new billionaire emerging from Caris Life Sciences’ IPO, a significant funding round for robots performing cataract surgery, and more. Sign up to receive it in your inbox here.
AFP via Getty Images
Monday saw representatives from various health insurance companies announce that they had committed to improving their prior authorization processes to the Department of Health and Human Services. They aim to streamline the bureaucratic process required for them to cover specific tests, medications, or procedures. By 2027, the insurers pledge to reduce the number of claims subject to prior authorization, standardize electronic requests, and provide 90% of approvals in real-time.
This isn’t the first time the industry has promised to simplify the prior authorization process. Insurers made a similar commitment in 2018 during the first Trump Administration, with echoes of those promises in the current announcement.
When asked why this effort could succeed where others have failed, Centers for Medicare & Medicaid Services Administrator Mehmet Oz pointed to the current urgency surrounding the issue, citing recent events such as the tragic murder of UnitedHealthcare CEO Brian Thompson. Oz also mentioned advancements in technology and the Administration’s plan to support the initiative with regulations.
“Either you fix it, or we’ll fix it,” Oz told the insurance company executives.
Bell Labs Is Commercializing Its Historic IP Portfolio, Starting With Healthcare
Nishant Batra, Nokia’s chief strategy and technology officer, has made commercializing Bell Labs’ IP a priority.
Nokia
For years, Bell Labs’ research has been renowned for its innovative discoveries, including transistors, lasers, and solar cells. However, the researchers excelled in generating ideas rather than commercializing them. Today, numerous patents and research concepts remain untapped in their New Jersey offices.
Since joining Nokia in 2021, Chief Strategy and Technology Officer Nishant Batra has been working to change this. He initially aimed to spin out two to three companies annually but now believes he can achieve three to five. Batra stated, “The world wouldn’t exist without Bell Labs, but their weakness lies in monetization.”
A key part of this transformation involves a partnership with deep tech investor Celesta, with whom Nokia has previously co-invested. Together, they are exploring Bell Labs’ IP portfolio for technologies with commercial potential, starting with healthcare.
The first company to emerge from this collaboration, Astranu, was launched in May with initial seed funding. It focuses on applying Bell Labs’ imaging technology, known as integrated optical coherence tomography, to diagnose middle ear conditions. The goal is to revolutionize ear diagnostic care by offering advanced, non-invasive, high-resolution 3D imaging, reducing the need for exploratory surgery and costly MRIs.
“We developed this technology for optical communications,” Batra explained. However, as Bell Labs’ researchers and Celesta’s investors examined the technology, they realized its potential in creating an accurate, handheld test for middle ear conditions. “Our optical researchers saw the application, and our partners at Celesta said, ‘we can bring this to market with you,'” Batra added.
While most of the hidden IP may not be healthcare-related, the launch of the first company from Bell Labs’ portfolio highlights the breadth of research applications and the adaptability of technology innovations to benefit patients.
“We refer to it as ‘bioconvergence,'” noted Celesta’s Founding Managing Partner Sriram Viswanathan, emphasizing the potential of technology miniaturization in medical applications. “It’s the convergence of advanced AI and semiconductor-related technologies in life sciences and biotech. We see numerous healthcare applications, making it a natural fit.”
BIOTECH AND PHARMA
Novo Nordisk announced on Monday that it was terminating its partnership with telehealth provider Hims & Hers to distribute its weight-loss drug, Wegovy. The pharmaceutical company accused Hims & Hers of engaging in deceptive marketing practices to sell counterfeit versions of its drug. Following the announcement, Hims & Hers’ stock price plummeted, reducing its market capitalization by nearly one-third to $9.6 billion and causing its co-founder and CEO, Andrew Dudum, to lose his billionaire status.
Additionally: A study published in the Journal of Immunology identified a biomarker that can predict the response of colorectal patients to treatment using cytokine-induced killer cells.
DIGITAL HEALTH AND AI
Last week, precision medicine company Caris Life Sciences went public, making founder David Dean Halbert a new billionaire. With the company’s current market cap at $7.4 billion, Halbert’s stake is valued at over $3.3 billion according to Forbes. He owns nearly 44% of the company and emphasized his belief in leveraging technology advancements to diagnose and treat molecular-level issues within the human body. Read more here.
Furthermore: Medical scribing startup Abridge achieved a valuation of $5.3 billion after securing $300 million in venture funding led by Andreessen Horowitz. The Pittsburgh-based company has gained momentum as healthcare providers adopt ambient listening apps, and its new valuation is nearly double its previous worth of $2.75 billion in February. CEO Shiv Rao highlighted the rapid evolution of AI in reshaping company operations, explaining Abridge’s expansion from enhancing doctor-patient interactions to aiding health systems with billing and coding using the same technology.
MEDTECH
With over 4 million cataract surgeries performed annually in the United States alone, the demand surpasses the availability of doctors to perform the procedures. ForSight Robotics, an Israeli startup, is betting on robotics to deliver superior and cost-effective outcomes compared to human surgeons. The company recently raised $125 million led by Eclipse Ventures to expand its Oryom robotic platform, the world’s first for cataracts and other eye diseases. This funding signifies one of the largest investments in a surgical robotics startup, bringing ForSight’s total investment to $195 million.
“Initially, people were apprehensive about the advancements in robotics,” explained Dr. Joseph Nathan, ForSight’s Co-founder, President, and Chief Medical Officer. “Now they view robotics as the key to achieving optimal outcomes.”
Read more here.
PUBLIC HEALTH AND HOSPITALS
The CDC’s Advisory Committee on Immunization Practices (ACIP), responsible for vaccine recommendations, is set to convene today and tomorrow to discuss COVID-19, flu, and RSV vaccines. Senator Bill Cassidy, a physician and chair of the Health, Education, Labor, and Pensions Committee, called for a delay in the panel’s meeting due to concerns over the lack of expertise among HHS Secretary Robert F. Kennedy Jr.’s new appointees and the reduced panel size.
Recently, RFK Jr. overhauled the vaccine advisory committee, appointing members with vaccine skepticism. However, a new poll by the Harvard Opinion Research Program revealed that the majority of Americans support mandatory vaccinations for school attendance, with 79% agreeing that parents should vaccinate their children. Even among Republicans, 66% share this view, with the remaining 60% preferring parental choice despite acknowledging the safety and efficacy of vaccines.
Moreover: The American Cancer Society released its latest Cancer Atlas, indicating that approximately 50% of global cancer deaths are attributable to modifiable risk factors. The report emphasizes the importance of public health officials focusing on prevention efforts.
WHAT WE’RE READING
In a small trial conducted by Vertex Pharmaceuticals, individuals with severe diabetes were effectively cured using a new stem cell-based infusion. Read more here.
Despite setbacks in Georgia and Arkansas, the GOP continues to push for Medicaid work requirements. Learn more here.
Recent changes within federal health agencies raise concerns among experts about the nation’s preparedness to handle a new pandemic compared to pre-2020 levels. Read more here.
Researchers claim that their findings were misrepresented by Health and Human Services in a memo to Congress to support anti-vaccine arguments. Learn more here.
Arine, an AI-driven medication management platform, raised $30 million in venture funding led by Town Hall Ventures. Read more here.
In a phase 2 study, a flu drug developed by Cidara Therapeutics provided 76.1% protection against influenza, surpassing the efficacy of many flu vaccines. Learn more here.
MORE FROM FORBES
