If last week was shutdown slump, this week is trending more towards “dumpster fire.” Those aren’t our words - they’re actually the ones used by Jon Kessler, CEO of HealthEquity to describe the regulatory and political environment.
Are you, like Mr. Kessler, already in need of a vacation from 2019? We’ve got some ideas. We’ve also got a roundup of this week’s news, the latest in pricing soundbites, and a mini-investigation into healthcare funding for 2019.
THE WEEK THAT WAS
Pulse on Pricing
What's that sound? Oh, just CEOs at JPM, putting their latest mark on the pricing debate. In case you weren’t there, here’s what you missed:
Follow the Funding
Deep Throat once said “follow the money.” Ok, so he wasn’t really talking about healthcare investing…but the logic still stands. So we did a deep dive looking into where early funding is going in the healthcare sector, and what that tells us about the future of the industry. Here’s what we found.
Pass the CBD?
Show me the money! CBD-related companies – including those for health and wellness - raised $13.8 billion in 2018 (4x 2017 funding rates).
The medical market is responsible for most of the CBD market growth in 2018 – with companies looking at CBD oils to treat everything from depression to sleep disorders to acne. 2018 saw increased deal size in CBD – meaning the average deal in CBD was considerably larger than the year before. This was partially due to the entrance of big alcohol and tobacco companies taking a stake in the market. Also a catalyst: state-based legislative changes in the U.S. and Canada legalizing marijuana. What’s next: Growing public pressure and support for legalization in the U.S. at the state and federal level.
'Cause yes, it's ladies
Show me the money! The femtech market – made up of companies looking to address issues in women’s health - is projected to be worth $50 billion by 2025.
The aptly named femtech market has emerged from a confluence of factors:
It’s basically math. Women need better care + women care a lot about health + women investors + entrepreneurs are hungrier than ever for funding = femtech.
What’s next: Increased pressure on traditional pharma companies to invest in women’s health.
Let's get digital, digital!
Show me the money! $8.1 billion was invested in digital health companies in 2018.
There’s no denying that Big Tech has set their sights on the healthcare industry as their next target. In fact, Tim Cook basically said as much in a CNBC interview this week. With the Consumer Electronics Show and JPM happening in the same week, both Big Tech and small startups are looking to disrupt the market. What’s next: A complicated conversation about approving, commercializing and reimbursing app-based therapies. For more thoughts on that, drop Meg a note .
On Monday, SCOTUS heard oral arguments in the Merck v. Albrecht product liability lawsuit, an important milestone for failure-to-warn cases. A ruling isn’t expected until the spring, but there are already key learnings for drug and device manufacturers with large patient populations. Have questions about the lawsuit and its implications? Don’t hesitate to reach out to RRM Legal Comms Strategist, Amanda Eiber, who has been following the case closely.
Who wrote this? The managing editors of TWTW are Dana Davis, who has been listening to Greta Van Fleet on repeat all week, and Randi Kahn, who is wishing for snow this weekend.
Syneos Health Communications' Reputation & Risk Management Practice is a team of healthcare communications consultants, policy-shapers and crisis response specialists. We provide unique solutions to the evolving communications challenges in today’s healthcare industry, using evidence-based approaches to help our clients successfully navigate the most sensitive of situations.
Got thoughts? Contact Dana
Image credits: Credit Card by Hrag Chanchanian from the Noun Project, Tooth by Ryan Farishian from the Noun Project, Bank check by Robiul Alam from the Noun Project, Spotlight by Olyn LeRoy from the Noun Project