The news: Johnson & Johnson is expanding its US manufacturing presence with a $2 billion investment in North Carolina via a partnership with Fujifilm Biotechnologies. Our take: Some US builds have been in the works for years, which means pharma is happy to make this good-faith “concession”—especially after seeing the impact the COVID-19 pandemic had on global supply chains. Even if Trump changes course on tariffs, or if the next administration has a completely different view, pharma companies won’t regret having more production capability in their biggest market.
The trend: Consumers pay broadly different prices for the same healthcare procedures across the US, with the highest average negotiated rate more than 9 times the lowest average rate in a recent assessment by Trilliant Health. Our take: Consumers want to be able to compare healthcare costs, but it’s still unclear how forceful the federal government is going to be in mandating true transparency—and if consumers truly grasp the publicly posted prices for medical services. We expect hospitals will continue to push back on any new regulations, while insurers will keep information on negotiated rates behind closed doors, thus perpetuating price disparities and not arming consumers with actionable insights that will lower their healthcare costs.
The news: The first glucose monitor for weight loss was cleared by the FDA this week. The newly approved Signos system uses an AI platform along with Stelo, Dexcom’s over-the-counter continuous glucose monitor (CGM), for real-time tracking and recommendations. Our take: We expect more glucose tracker options for GLP-1 users to be cleared by the FDA as CGMs move into the mainstream. CGM device makers and AI-assisted apps need to stress the importance of healthcare provider guidance and stick to science-based education and marketing.
US physicians are noticing an increase in patients who are influenced by medical misinformation and disinformation, according to a recent survey of over 1,000 doctors from The Physicians Foundation. The final word: Healthcare providers should find out where patients get their medical information during visits. Evaluating the pros and cons of different online sources in partnership with patients could spur more frequent two-way dialogue between patients and their doctors. Physician education can dissuade consumers from relying on unconventional channels for health information. Doctors should also take up the opportunity to develop trustworthy health content for social platforms that are actively looking to combat medical misinformation, such as YouTube.
The news: New details on the Trump administration and European Union trade agreement solidify a 15% tariff cap on generics and active pharmaceutical ingredients, but leave questions on brand-name drug imports. The takeaway: Pharma companies can breathe a sigh of relief with the certainty of 15% EU tariffs and another reprieve, at least for now, on MFN pricing. Although the threat remains, the MFN deadline has already shifted once from June to September and could be moved again. That said, drugmakers should continue discussions while preparing for counter measures if needed such as US-only drug launches or raising prices abroad.
The news: Telehealth company Ro signed tennis superstar Serena Williams as a celebrity patient spokesperson for its GLP-1 weight loss meds. Our take: As an athlete, Williams speaks to potential GLP-1 customers who may not relate to advertising that focuses on people with obesity. Ro’s strategy is a win for Lilly and Novo since the drugmakers can stick to brand-safe body positivity and anti-stigma messages via obesity awareness campaigns, while their telehealth partners take on flashier campaigns with mega-celebrities while not having to adhere to the same strict FDA ad regulations.
Google will soon unveil an AI-powered personal health coach for the Fitbit app. Powered by Gemini, the health coach will be available to Fitbit Premium subscribers. Google will roll out a preview in October with the latest Fitbit trackers, Fitbit smartwatches, and Pixel Watches. Our take: The AI arms race has hit the health app and wearables space, and Google/Fitbit beat rivals to the punch with an AI personalized health coach. Highly customized health recommendations will be a must-have in the next iteration of digital health tools. Players in this space must ensure their AI-delivered guidance is reliable, while not turning off consumers with pricey subscription requirements.
The news: Epic rolled out new genAI tools for clinicians, including an AI scribe solution that transcribes doctors’ notes during patient visits. Epic will incorporate ambient technology from Microsoft to power its medical documentation technology. Our take: Epic’s AI scribe solution with Microsoft/Nuance as its development partner delivers a major blow to startups like Abridge and Ambience. These two companies are part of a booming ambient AI scribe space that has totaled nearly $1 billion in investment funding so far this year, per a July analysis from STAT. But Epic’s presence will make it much tougher for smaller players to stand out in the category, since doctors will be drawn in by the efficiency of using scribe tools from their EHR system.
The news: The American Academy of Pediatrics (AAP) released COVID-19 vaccine recommendations that contradict the federal government’s recent guidance shift. Our take: Conflicting vaccine guidance is creating confusion for patients and healthcare providers, while making public discourse on vaccines more divisive. The responsibility to fix this will now fall on local leaders. States, communities, and physicians must take charge. They need to deliver clear, evidence-based vaccine information directly to people through local clinics, schools, and pharmacies. They must also actively campaign for insurers to continue covering the shots.
The news: A closely watched GLP-1 experimental pill from Viking Therapeutics achieved lower-than-anticipated weight loss results in study data released Tuesday. Our take: While weight loss pills won't be as powerful as shots, they still offer a good solution. Losing 10% to 12% of weight is still a significant result. Plus, pills are much more convenient than injectibles. They're easier to store and take, and don't require a needle. Drug companies should focus on promoting these benefits to market the pills as a good weight loss option.
The trend: The number of family caregivers in the US continues to increase, and many are taking on more responsibility, according to a survey of nearly 6,900 family caregivers ages 18+ from the AARP & National Alliance for Caregiving. Our take: Healthcare provider organizations and pharma companies can build relationships with families and drive brand loyalty by developing resources that target caregivers rather than patients. For instance, providers with patients who have family caregivers can offer transportation services to appointments, be accessible during times of the day that best work for caretakers, and connect caregivers with resources on how to get compensated for their work. Additionally, drugmakers should create educational materials that help caregivers better understand their recipients’ disease, manage their treatment regimens, and administer medications.
The news: HHS Secretary Robert F. Kennedy Jr. is reviving a children’s vaccine task force after pressure from anti-vaccine advocates. The reinstated Task Force on Safer Childhood Vaccines will be led by NIH director Jay Bhattacharya and include FDA and CDC senior officials. Our take: The HHS’ vaccine moves will stoke already growing vaccine hesitancy and mistrust. Healthcare providers and vaccine makers need to ally with medical groups and experts to double down on the proven science of vaccines in clear and reassuring communications to parents and consumers. They should underscore the importance of preventive vaccines for individual children and broader public health.
The news: AstraZeneca is rolling out the first flu vaccine for at-home use, a nasal spray called FluMist Home. Our take: AstraZeneca’s at-home vaccine option offers an appealing new convenience but still faces vaccine hesitancy and change skeptics. While the marketing is just rolling out, social media parent influencer voices and partnering with trusted physicians will be important to build trust.
The news: Apple is bringing back blood oxygen monitoring for Apple Watch as part of its health and wellness features. Apple discontinued the feature in the US in 2023 after a patent dispute and court ruling forced the halt. The takeaway: Apple still leads smartwatch brands with a 22% market share, but its dominance has slipped. Health and wellness features incorporating AI assistance are key for future growth. Tech companies should market wearables as health tools for consumers, especially to older demographics who have greater health needs but lower smartwatch adoption rates.
The news: Costco has opted against dispensing the FDA-approved abortion pill mifepristone at its 500+ pharmacy locations, per Bloomberg. Our take: Costco's position could offend many of its customers and reverse the goodwill it has earned by holding firm on its DEI policies amid right-wing criticism. Costco might risk further brand damage if it stands by the reason of weak consumer demand when there’s evidence showing an uptick in medication abortions.
The news: 26.5% of US adults with type 2 diabetes used a GLP-1 injectable drug last year, per CDC data published Thursday. Our take: While type 2 diabetes is still driving most GLP-1 prescribing today, there’s a healthcare opportunity to address obesity at the same time. Providers need to proactively educate patients with obesity about the risk for type 2 diabetes, while marketers can message GLP-1s as preventive care. Partner with physicians who’ve seen the benefits for their patients and social influencers touting health benefits they’ve gained after starting GLP-1s for weight loss.
The trend: Even amid the surging popularity of weight loss drugs, 60% of respondents to a recent Tebra survey admitted they’re hesitant to ask physicians about GLP-1 medications. Our take: Healthcare and pharma players in the GLP-1 space will want to double down on messaging that obesity is a chronic condition that often requires medication, while integrating testimonials from GLP-1 patients who are proud of their weight loss achievements. Marketers should also craft content that addresses physicians’ specific biases against weight loss drugs and refutes common misconceptions.
The news: Eli Lilly is hiking the UK price of its diabetes and weight loss drug Mounjaro by as much as 170% starting next month, depending on the dose size. The drugmaker also said it’s been working on raising prices of its medications in Europe and other developed countries. Our take: Drug pricing is so complicated that it could benefit pharma manufacturers, because it will be hard to know whether they’re truly equalizing prices or just finding ways around the Trump administration’s demands that other drugmakers could copy.
The news: BlinkRx debuted a new quick startup direct-to-consumer (D2C) offering for pharma companies, on the heels of President Trump’s demand for more D2C drug distribution. Trump’s son, Donald Trump Jr, joined the board of BlinkRx in February. BlinkRx told Bloomberg it did not consult with Trump Jr. nor anyone in the Trump administration about the new offering. The takeaway: Pharma companies were already looking at new access models and ways to build direct connections to patients, but with the now pressing Trump demands, there’s new opportunity for digital health companies to offer vetted plug-and-play models.