Your DNA Could Be Sold, JP Morgan Sued By Employee, Hinge Health S-1 Breakdown & More

Hey all,

I was off for a week (meaning working ~4 hours per day instead of 10). I decided to start the week with a double edition of the rundown with 6 stories from last week. Last week’s Healthcare Huddle on the potential for a 23andMe bankruptcy leading to the sale of consumer data has me deleting my Ancestry.com account. Enjoy the rundown!

Jacob Brody (Co-Founder & CEO, ZorroRX)

(Cost Curve) The Five Biggest Stories in Health Care

Brian Reid highlights five crucial but under-covered health care issues: the decline of retail pharmacies, the rise of offshore “pseudo-pharma” PBM affiliates, the expansion of direct-to-patient pharmaceutical sales (“pharm-to-table”), exploitation of the 340B drug pricing program, and employers’ growing accountability for benefit design. He also touches on a subdued debate between Mark Cuban and John Arnold on health care costs, a dramatic biosimilar price drop for Stelara, and ongoing policy battles over drug pricing and insurance reforms. Full Article.

(PLANSPONSOR) J.P. Morgan Sued Over Cost of Generic Drugs in Health Plan 

J.P. Morgan is facing a lawsuit from employees alleging the bank overpaid for generic drugs through its health plan, raising concerns about employer accountability in benefit design. The case highlights growing scrutiny over how companies manage prescription drug costs, especially as price transparency makes it easier to compare negotiated rates. With similar lawsuits emerging against other major employers, this legal action could signal broader challenges for corporate health plans. Full Article.

(Health Care un-covered) Marilyn Bartlett’s Fight for Price Transparency

Marilyn Bartlett, a former CFO and now a senior policy fellow at NASHP, has spent years championing hospital price transparency and reference-based pricing (RBP) to control rising healthcare costs. Her groundbreaking efforts in Montana turned a struggling state employee health plan into a model for cost control, inspiring national initiatives, legislative efforts, and employer advocacy for greater financial oversight in healthcare. Despite her age, Bartlett remains a tireless force, consulting on policy, tracking hospital financial performance, and pushing for systemic reform. Full Article.

(Fierce Biotech) Novo Nordisk Links CagriSema to 16% Weight Loss, Sending Stock Down Again 

Novo Nordisk’s weight-loss drug CagriSema fell short of expectations in its second phase 3 trial, with patients losing an average of 15.7% of their body weight over 68 weeks—well below the 25% target. This follows a previous trial that showed 22.7% weight loss, leading to investor disappointment and an 8% drop in Novo’s stock. Analysts now see Eli Lilly’s Zepbound and other competitors as having a stronger approach, though Novo remains optimistic, emphasizing CagriSema’s efficacy in Type 2 diabetes patients and planning for a 2026 regulatory filing. More detailed trial data could offer further insights, but for now, the results cast doubt on Novo’s ability to compete in the weight-loss market. Full Article.

(Healthcare Huddle) 23andMe’s Collapse: Financial Woes, Layoffs, and Data Risks 

23andMe is in financial free fall, with declining revenue, mass layoffs, and the shutdown of its therapeutics division, forcing the company to explore a sale or even bankruptcy. As its core business shrinks, its most valuable asset remains its vast trove of consumer genetic data—but unlike medical records, this data isn’t protected under HIPAA, meaning it can legally be sold to biotech firms, private equity, or even auctioned off in bankruptcy court. Without stronger federal privacy laws, millions of consumers could soon lose control over their DNA information. Full Article.

(Hospitalogy) Hinge Health S-1 Breakdown

In his detailed S-1 breakdown, Blake Madden analyzes Hinge Health's impressive metrics: $390M in 2024 revenue with 77% gross margins and 33% YoY growth. The company's AI-enabled virtual MSK platform claims to reduce human PT hours by 95% while maintaining comparable clinical outcomes to in-person care, potentially validating the tech-enabled healthcare services thesis. Serving 2,250 clients with access to 20M lives and partnering with all five national health plans, Hinge demonstrates strong market penetration, though Madden questions whether the company can maintain its previous $6.2B private valuation in current market conditions. Full Article