ZorroCard Round Up (9/25/24)

Hey all,

today’s round up includes a piece on an impending wave of digital health mergers. Many digital health companies were created in the wake of the pandemic and acquisitions of OneMedical, Livongo, and PillPack. What we learned is that digital health is not a category unto itself but part of the broader care stack. Many cannot be profitable except at massive scale, reducing their value significantly.

Enjoy the rundown!

Jacob Brody (Co-Founder & CEO at ZorroCard)

Reuters (PBMs Letter To Bernie Sanders Lowering The List Price of Ozempic and Wegovy): Bernie Sanders held a hearing to talk about the high prices of popular diabetes and weight-loss drugs, Ozempic and Wegovy, made by Novo Nordisk. Sanders mentioned a letter from three big pharmacy benefit managers (PBMs) saying that lowering the list price wouldn't mean less coverage for the drugs. Novo's CEO didn't commit to lowering prices, which isn't surprising because the letter didn't cover other important factors in the pharmacy benefits market that affect coverage. Full Article

Second Opinion Media (Digital Health Mergers): Christina Farr and 7Wire’s Alyssa Jaffee co-write a piece predicting a boom in digital health mergers. Digital health is poised to enter a “scale game” where growth and consolidation will become crucial for survival. The industry is moving from innovation to scale, driven by the need for profitability and market share. This shift will likely lead to more mergers and acquisitions as smaller companies seek to partner with or be acquired by larger players to remain competitive. The trend reflects broader changes in how digital health companies operate and grow. Full Article

Healthcare Uncovered (Universal Primary Care as the Antidote to Healthcare Costs): A Vermont family medicine physician advocates for Universal Primary Care (UPC) as a solution to the rising costs and inefficiencies in the U.S. healthcare system. It argues that UPC could prevent expensive treatments by emphasizing early intervention and continuous care, ultimately leading to better health outcomes and reduced financial burdens on patients and the system. The piece positions UPC as a crucial reform for improving overall healthcare accessibility and sustainability. Full Article