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July 31, 2023

Healthcare Brew

Happy Monday! We’re in the middle of summer—and summer earnings call season. This week executives from Pfizer, Moderna, AmerisourceBergen, Cigna, and other health companies are set to update investors on their latest financials and product offerings. Don’t have time to listen in? Don’t worry, Healthcare Brew’s on it.

In today’s edition:

Genetic testing

Drug shortages

🪇 Moving and shaking

—Shannon Young, Maia Anderson

HEALTHCARE INNOVATION

It’s in your genes

crispr illustration Elenabs/Getty Images

If you’ve ever swabbed your dog’s cheek and submitted the DNA sample for testing, you probably learned about your pup’s breed and genetic risks for health conditions. Similar, yet more in-depth, testing—known as whole exome sequencing (WES)—exists for humans, but it’s far less common than its canine (or even human ancestry-focused) counterparts.

A growing industry of genetic testing startups, like Florida-based Panacea, is looking to change that. And backers of WES argue that the relatively new technology—which did not exist two decades ago—could be key to the future of medicine.

“More than 80% of people do not get any kind of genetic testing, let alone the thorough, core, holy-grail genetic testing, which is whole exome or whole genome,” Panacea founder and CEO Dahlia Attia-King told Healthcare Brew. “There is a massive, massive underutilization of the core test that is necessary for the future of healthcare to even begin.”

Attia-King attributed that underutilization to three main causes: a lack of knowledge among physicians on how to implement genetics into patient care; the price for such testing, which can cost thousands of dollars and may not be covered by insurers; and a lack of public awareness about genome sequencing that goes beyond more popular direct-to-consumer DNA testing offered by companies like 23andMe.

“It’s literally like walking into the grocery store with a very specific list of items that you’re looking for, as opposed to walking in the grocery store and scanning every aisle and figuring out what exists,” she said. “Most people will have that false sense of security because they’ve done a 23andMe or some other type of direct-to-consumer test without understanding the fact that so much genetic information is likely missed because those tests are not actually sequencing your DNA.”

Keep reading here.—SY

Do you work in healthcare or have information about the industry that we should know? Email Shannon at [email protected]. For completely confidential conversations, ask Shannon for her number on Signal.

   

FROM THE CREW

AI: Friend or foe?

The Crew

From HAL to Skynet, AI gets a bad rap. With its fast rise, buzzy headlines, and seemingly limitless potential, it’s hard to know if AI will help us or upend us. A pressing question on many employees’ minds: Will AI take my job?

MIT researchers offer a picture of the future of AI in the workplace. Read Tech Brew’s explanation of what artificial intelligence is capable of, what its probable use cases are, and the implications for your job. Hint: Predictions might be more complex and hopeful than you might expect. Read or listen here.

SUPPLY CHAIN

Short supply

Winding road of pill bottles Hannah Minn

Drug shortages are nothing new for the healthcare industry, but the Covid-19 pandemic caused a wave of new shortages—and with it came increased public attention.

That’s why these days, it can seem like new shortages are creeping up everywhere, from Adderall to weight loss drugs like Ozempic and Wegovy.

So, what causes drug shortages? Turns out, a lot of things.

“Every drug shortage is unique,” according to Craig Burton, SVP of policy and strategic alliances at the trade group Association for Accessible Medicines, which represents generic drugmakers.

But there are a few factors that pop up consistently: quality concerns, financial incentives, and increased demand.

Quality control: Though brand-name drugs like Adderall, Ozempic, and Wegovy get a lot of attention when there’s a shortage, the generic, low-cost injectable drugs make up the majority of shortages, according to Michael Ganio, senior director of pharmacy practice and quality at the American Society of Health-System Pharmacists.

The most common reason behind generic injectable drug shortages is quality issues at manufacturing plants, said Erin Fox, associate chief pharmacy officer of shared services at the University of Utah Health in Salt Lake City.

Making injectables is a very complex process that requires more testing than pills or solid dosage drugs, Ganio said. The FDA also heavily regulates the manufacturing of these drugs, which means there are a ton of protocols plants have to follow.

The combination of complexity and heavy regulation means there’s lots of room for mistakes, too. Something as seemingly small as using the incorrect number of vials when making a batch of an injectable drug could delay the manufacturing process, Ganio said. Other issues could be a piece of equipment not working properly or a documentation error occurring during sterility testing.

Keep reading here.—MA

Do you work in healthcare or have information about the industry that we should know? Email Maia at [email protected]. For completely confidential conversations, ask Maia for her number on Signal.

   

STAFFING

Movers and shakers

A woman with brown hair and red lipstick smiles Nikia Bergan

Wondering who got a new job or what new positions healthcare companies have filled recently? Healthcare Brew’s got you covered. Each month we’ll highlight some of the major job changes in the healthcare industry as part of our new Movers and Shakers series.

Have a job announcement to share? Drop Shannon an email at [email protected].

Movers and Shakers

Jillian Ahrens: Digital therapeutics company BehaVR named the former Pear Therapeutics associate director of product research and design its first chief product and design officer.

Julien Benchetrit: AI-powered clinical trial design startup QuantHealth welcomed the software leader its VP of engineering.

Nikia Bergan: Equip, a virtual evidence-based eating disorder treatment program, brought in the former GetWellNetwork president to be its own first president.

Neha Chaudhary: The double board-certified child, adolescent, and adult psychiatrist is now the first chief medical officer (CMO) for mental health platform Modern Health.

Evelyn Daniels: The former digital behavioral health company 2Morrow EVP of business development joined Laguna Health, an AI-powered contextual care management platform, as VP of business development.

David Dornstreich: QuantHealth named the life sciences veteran its chief commercial officer and US general manager.

Anthony Frank: Banner Health’s former SVP of finance took over as Westchester Medical Center Health (WMCHealth) Network’s EVP and CFO. WMCHealth President and CEO Michael Israel said Frank “will add tremendous value and vision with decades of tenure in the financial industry.”

Keep reading here.—SY

   

VITAL SIGNS

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

Today’s top healthcare reads.

Stat: The US maternal mortality rate rose to 32.9 deaths per 100,000 live births in 2021, up from 20.1 deaths per 100,000 in 2019, according to the CDC. But for Black women, the rate jumps to 69.9 deaths per 100,000 births in 2021, up from 44 deaths per 100,000 in 2019. (National Birth Equity Collaborative)

Quote: “Relying on [its algorithm] the PXDX system, Cigna’s doctors instantly reject claims on medical grounds without ever opening patient files, leaving thousands of patients effectively without coverage and with unexpected bills.”—A class-action lawsuit filed in California on allegations that the insurer uses an algorithm to reject patient claims (CBS News)

Read: A county fair may be the next ground zero for a future pandemic. (the New York Times)

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