Hello HoH readers!

Welcome to this week’s edition of Healthcare and Innovation at the Crossroads.

The previous week began with a long weekend for many people in Germany due to the Day of German Unity holiday. However, I didn't get the chance to enjoy it fully as I had to travel to Cleveland, OH for business purposes. No delays or cancellations, no long immigration lines, and great service with United Airlines - you have to be grateful for the small wins. And grateful I am.

After a stop in Munich and dinner with friends, I’m now back in Berlin celebrating my son’s 7th birthday!

Feel free to share your comments and feedback below. I hope you enjoy reading this newsletter.

Take care,

Andre

We Know Where New Weight Loss Drugs Came From, but Not Why They Work and Weight loss drugs may be linked to stomach paralysis, other rare but severe issues, study says and Drugs aiding weight-loss like Ozempic have so much promise, a major bank is telling investors to short junk-food stocks

This week, one of my posts on Linkedin got particular engagement: the weight loss industry, the hype around GLP-1 drugs, and some of the early ripple effects.

Obesity, once dismissed as a mere personal failing, had pharmaceutical giants on the back foot. But, in a plot twist worthy of a sci-fi tale, diabetes research gave birth to weight loss marvels like Ozempic and Wegovy. Despite their booming demand and nebulous mechanisms, these drugs are reshaping the obesity narrative. They hint at a shift from sweat-soaked gym routines to tailored medical strategies. Still, as the applause grows louder, questions about long-term effects linger.

New research was released on Thursday from the University of British Columbia, indicating that popular weight loss and diabetes medications, including Wegovy and Ozempic, could be connected to a higher risk of three rare but severe stomach conditions in people who don't have diabetes. It is noteworthy that one of these conditions is not mentioned in the medication's warning labels. This study comes at a time when drugs like Wegovy and Ozempic from Novo Nordisk are gaining popularity in the United States due to their significant weight loss effects.

GLP-1 weight loss drugs are expected to significantly impact the consumer market, with their indications potentially expanding beyond diabetes and obesity.

Potential Winners:

1. Drug manufacturers: Novo Nordisk and Eli Lilly, the developers of the GLP-1 drugs, have seen an 85% surge in their stock prices over the past year. JPMorgan predicts that the GLP-1 market could be valued at $100 billion, with both companies generating $50 billion annually by 2030.

2. Drug suppliers and distributors: Catalent and Thermo Fisher have collaborated with Novo Nordisk, while McKesson and Cencora handle the drug's distribution, deriving about 20% of their revenue from Eli Lilly.

3. Fitness and athletic brands: Brands like Nike and Lululemon and fitness centers like Planet Fitness stand to gain from the rise of GLP-1 drugs. These drugs work best in conjunction with exercise, leading to a 50% loss of muscle and emphasizing the importance of weightlifting.

Potential Losers:

1. Medical device companies: GLP-1 drugs could reduce the demand for products related to obesity-related conditions. CPAP machine sellers like Inspire Medical and ResMed have seen their stock prices drop over 40%. Insulin delivery system manufacturers, such as Insulet and Tandem Diabetes Care, have experienced a decline of over 50% from their yearly high.

2. Fast-food chains and junk-food companies: Patients taking GLP-1 drugs reportedly reduce their calorie intake, particularly from sugary and fatty foods, which could negatively impact businesses like Domino's Pizza, Krispy Kreme, and Yum Brands.

3. Beer and tobacco companies: There is evidence that GLP-1 drugs decrease addictive behaviors. A study found that consumption of alcohol reduced for 62% of those surveyed, with 25% halting entirely. GLP-1 drugs were also found to reduce nicotine intake, which could affect companies like Altria and Phillip Morris.

It is fascinating to watch play: GLP-1 drugs may cause significant market disruptions, but their high cost, supply limitations, and restricted insurance coverage may slow their adoption.

I would love to get your thoughts and comments!

Pharmaceuticals

• Carmot Therapeutics, a company that produces drugs for weight loss, is currently considering the possibility of going public through an IPO. → Bloomberg

• Private equity firms Bain Capital and Cinven have lined up banks to explore options for German drugmaker Stada Arzneimittel, including a potential sale valued at $10.5 billion. → Bloomberg

• Viatris is divesting parts of their business for up to $3.6 billion. Cooper Consumer Health offered $2.17 billion for their OTC drug business and Insud Pharma and Iquest Enterprises will buy their women’s healthcare business and active pharmaceutical ingredients business in India for $1.2 billion. → Reuters

• Novartis is currently exploring the possibility of selling a portion of Advanced Accelerator Applications, a radiopharmaceuticals company. → Bloomberg

• Sanofi is currently considering the possibility of acquiring Mirati Therapeutics, a company that specializes in developing drugs to treat cancer. → Bloomberg

Biotechnology

• Avalyn, a clinical-stage biopharmaceutical company focused on developing targeted inhaled therapies for pulmonary diseases, has raised $175 million in a Series C funding round led by Perceptive Xontogeny Venture Funds, SR One, and Eventide Asset Management. → VC Daily News

• Evozyne, a startup that uses evolution and deep learning to create functional proteins, has raised $81 million in Series B funding led by Fidelity and OrbiMed.→ VC News Daily & Pharmaceutical Technology

• Biopharmaceutical company Mogrify has raised $10 million in a Series A extension round led by Astellas Venture Management and Parkwalk Advisors. → Businesswire

• Eli Lilly will purchase Point Biopharma Global for $1.4 billion and gain access to targeted cancer therapies. → Reuters

• Shorla Oncology, a startup developing treatments for cancer, has raised $35 million in a Series B funding round led by Kurma Partners. → Businesswire

• Japanese pharmaceutical company Kyowa Kirin will acquire Orchard Therapeutics, a gene therapy developer, for $387 million. → Global Newswire

• AbbVie has acquired Mitokinin for $110M, exercising its exclusive right as the Parkinson's Disease drug developer. → Benzinga

Medical Technology

• Carlyle Group is in talks to buy majority stake in Medtronic's patient monitoring and respiratory interventions units for over $7 billion. → Reuters

• Private equity firm Cinven will acquire German lab operator Synlab for approximately $1.3 billion, just two years after its initial public offering.→ Bloomberg

• Dental aligner company SmileDirectClub has filed for bankruptcy four years after raising $1.4B through its IPO. → Bloomberg

• Piccolo Medical, a medical device startup, raised $5.5M in Series B funding led by Event Capital Strategies. → PR Newswire

• Robotics startup Automata Technologies has secured $40M in funding, with Dimension leading the round. The company specializes in lab automation. → Businesswire

• Akura Medical raised $35 million Series B led by The Capital Partnership and Cormorant Asset Management for venous thromboembolism treatment. → PR Newswire

• Carlyle Group is seeking at least $2.5 billion in debt from banks and private credit lenders to acquire stakes in some of Medtronic's business units. → Bloomberg

• Lab equipment manufacturer Standard BioTools and protein and biomarker company SomaLogic will merge in an all-stock deal worth $1 billion. → Bloomberg

• Microsurgery startup Microsure raised $40 million in a Series B2 led by European Innovation Council Fund, Kineo, Invest-NL, Innovation Industries, BOM Ventures, & others. → FinSMEs

• Thoma Bravo is close to securing a $1 billion debt financing package from a group of private credit lenders to acquire NextGen Healthcare. → Bloomberg

• QT Medical, a startup specializing in portable cardiac care diagnostics, has raised $12 million in a funding round led by CDIB Capital and Taiwania Capital. → PR Newswire

Digital Health

• Homecare Hub, a startup that offers innovative home care and housing solutions, has raised $2.5 million in a seed round led by Inception Health and Ballad Ventures. → FinSMEs

• Health Data Analytics Institute, an AI company, has successfully raised $31 million in Series C funding. The funding round was led by Invus. → PR Newswire & FinSMEs

• Iambic Therapeutics has raised $100 million in a Series B funding round led by Ascenta Capital and Abingworth. The startup is developing therapeutics using its AI generative discovery platform. → Businesswire

• Lokavant, a platform for clinical trial intelligence, secured an $8 million investment from Mitsui & Co. Ltd. → Businesswire

• LANGaware, a startup using AI to detect cognitive and mental health conditions, raised a $2 million seed round led by Eleven Ventures. → PR Newswire

• NYC-based mental healthcare tech startup Headway raised a $125M Series C at a $1B valuation led by Spark Capital → FinSMEs

• Doceree raised $35M from Creaegis, Eight Roads Ventures, and F-Prime C at a $235M valuation. → PR Newswire

• Cartwheel Care has recently secured $20 million in funding aimed at expanding its student telemental health solution. → Axios

• Partum Health seeds $3.1M led by True Wealth Venture for interdisciplinary pregnancy and postpartum support. → Femtech Insider

• Long-term and acute care management and administration tool Savoy Life earns $3 million. → Axios

Healthcare Services

• UK regulators have given their approval for UnitedHealth Group to acquire healthcare technology firm EMIS for $1.5 billion. → Reuters

• UK health insurance company, Bupa, will acquire a 20% stake in Niva Bupa Insurance for $325M from its partner. → Reuters

• KKR is in exclusive talks to acquire Eugin from Fresenius, valuing the Spanish and Portuguese fertility clinics at $5 billion. → Reuters

• Warburg Pincus-backed outsourcing firm Everise raises undisclosed amount at $1 billion valuation. → PR Newswire

• Cortica, a physician-led and whole-child value-based autism services company, raised a $40M Series D extension led by CVS Health Ventures. → PR Newswire

• Kaiser Permanente Union workers strike, mounting largest US healthcare walkout on record. → Wall Street Journal

• Startup Plenful has raised $9 million to streamline healthcare operations, led by Bessemer Venture Partners. → FinSMEs

• Diana Health, a modern women’s health network, secured a $34 million Series B led by Norwest Venture Partners. → PR Newswire

Consumer health and wellness

• Evvy, a female-led startup, raises $14 million Series A funding round led by Left Lane Capital to focus on the microbiome. → Forbes

• Google Ventures leads $25 million funding for women's health firm, Midi Health. → Femtech Insider

Financial Institutions

• 7wireVentures, a venture capital firm focused on digital health, has raised $217 million for its 'Growth & Opportunity Fund.' → FinSMEs