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Experts predict a boom in healthcare M&A this year.

Happy Wednesday! As part of its plan to reduce debt, Walgreens just sold more of its Cencora (previously known as AmerisourceBergen) shares for $300 million, lowering its stake in the company from 10% to 6%. The move comes after the retail pharmacy giant reported a $265 million net loss in its Q1 2025 earnings last month and amid rumors the chain is considering selling itself to private equity firm Sycamore Partners.

In today’s edition:

The year of M&A?

GenAI proves useful

Spotted at the Super Bowl: GLP-1s

—Maia Anderson, Caroline Catherman, Ryan Barwick

M&A

Pills spelling out 2025 with upward arrows surrounding an image of a man in a pharmaceutical store. Credit: Illustration: Anna Kim, Photos: Adobe Stock

Illustration: Anna Kim, Photos: Adobe Stock

It’s poised to be a big year for mergers and acquisitions (M&A) in the healthcare industry.

Lowered inflation, the anticipation of more interest rate cuts, and the expectation that the Trump administration will ease up on antitrust regulations have created a more favorable dealmaking environment than we’ve seen since 2021’s boom, experts said.

“We do expect to see a tremendous amount more of M&A than we’ve seen in the previous years, but each subsector has a different flavor, and each subsector’s reasoning for having a boom in M&A is different,” Kristin Pothier, principal and healthcare and life sciences sector leader at accounting firm KPMG, told Healthcare Brew.

Where the action will be. One of the biggest subsectors for M&A activity this year will be pharmaceuticals, Pothier projected.

A number of big pharma companies have drugs with patents expiring in the next few years, she said. Because of that, the companies will be looking to acquire smaller players with promising drug candidates to replace that revenue.

Keep reading here.—MA

Presented By Quad

ARTIFICIAL INTELLIGENCE

AI robot arms reaching towards the sky with lots of money falling around them.

Amelia Kinsinger

The global healthcare artificial intelligence (AI) industry is expected to grow from $27.69 billion in 2023 to $490.96 billion by 2032, according to Fortune Business Insights.

But is this investment paying off?

In a survey of 121 global C-suite health system executives by the Deloitte US Center for Health Solutions—released on Jan. 29—some say yes. Over 40% (52) said generative AI had already produced “significant-to-moderate” returns on investment. Generative AI’s uses include automating processes like data entry and analyzing CT scans, MRIs, and X-rays.

Jennifer Bryan, a rural healthcare provider and president of the Mississippi State Medical Association, told Healthcare Brew that she has seen AI’s value firsthand. She said she uses Suki AI Assistant to ambiently listen to each of her patient appointments, saving her two hours daily that she would have used to type up notes.

Keep reading here.—CC

SUPER BOWL

Stills from Hims & Hers ad.

Hims & Hers

The crack and fizz of a freshly opened bottle of Mountain Dew. Matthew McConaughey wielding a fried chicken wing like a baton. Reese’s Peanut Butter Cups, so decadent and oozing with chocolate that they’re driving people to risk self-immolation at the foot of a volcano.

This year’s Super Bowl Sunday was a typical junk-food bacchanal. That is, until one ad may have cast that second helping of buffalo dip in a different light.

In the third quarter of the game, the direct-to-consumer telehealth company Hims & Hers ran a PSA-style ad highlighting America’s obesity epidemic, complete with shots of jiggling bellies, spinning scales, eerie medical scans, and a message that “obesity leads to half a million deaths each year.”

“Something’s broken, and it’s not our bodies,” the ad warns viewers, before offering a solution: weight loss drugs, like semaglutide, which Hims & Hers sells in a compounded form.

Keep reading on Marketing Brew.—RB

Together With Calm

VITAL SIGNS

A laptop tracking vital signs is placed on rolling medical equipment.

Francis Scialabba

Today’s top healthcare reads.

Stat: 800. That’s how many nurses at Kaiser Permanente-owned Geisinger Wyoming Valley Medical Center in Wilkes-Barre, Pennsylvania, plan to strike for five days starting Feb. 17. (Times Leader)

Quote: “Medicaid’s original purpose was to provide medical services to individuals with disabilities and low-income families. It’s a challenge for states to focus on making solid improvements in these areas when their focus is continuously shifted to shinier priorities.”—Elizabeth Matney, Iowa’s former state Medicaid director, on the conservative and libertarian theory that less federal Medicaid spending would improve the program (NPR)

Read: How UnitedHealthcare is trying to clean up its reputation. (Rolling Stone)

Chaos controlled: Get off the health marketing roller coaster, and get Quad’s 2025 Audience Strategy Guide. The seven essential steps it outlines can help leverage resilient data and strategically build audiences. Give it a read now.

*A message from our sponsor.

A black pregnant woman with a medical cross logo glowing behind her

MB

Black mothers in the U.S. face higher mortality and mistreatment rates during childbirth. Advocates are pushing for solutions, including community support, doulas, and diversifying the medical workforce. Medicaid coverage for doula care is expanding, but more systemic changes are needed to ensure equitable maternal healthcare.

Read more

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