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Twin, where have you been?
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Healthcare Brew // Morning Brew // Update
Pharma companies are using digital twins to streamline clinical trials.

Welcome to Wednesday. Following Anthem’s release (and then reversal) of a policy putting a time limit on anesthesia coverage during surgeries, a Democratic congressman is introducing the Anesthesia for All Act, which would bar other insurers from trying to make similar policies in the future. The bill claims that “anesthesia care is essential and must be determined by medical necessity, not arbitrary limits.”

In today’s edition:

Sanofi’s digital twins

GLP-1’s hefty price tag

Walgreens considers sale

—Charlotte Hu, Maia Anderson, Nicole Ortiz

CLINICAL TRIALS

Sanofi pharmaceutical laboratory plant is in Neuville sur Saone in Rhone, France

Nurphoto/Getty Images

Technology-forward pharmaceutical companies are increasingly experimenting with digital twins to streamline the clinical trial process.

Digital twins are virtual copies of organs and human bodies companies use to test drugs, and the tech can help predict disease progression and optimize study design. Over the last few years, French pharma company Sanofi has built digital twins to simulate the behaviors of its drugs as well as patient outcomes in dozens of disease areas.

Although artificial intelligence (AI) is currently the industry’s favorite buzzword, Paris-based Sanofi’s digital twins do not rely solely on input from AI models, Matt Truppo, global head of research platforms and computational R&D at Sanofi, told Healthcare Brew. The company’s models also incorporate the quantitative systems pharmacology (QSP) approach that combines math and biology modeling based on differential equations.

AI models are often referred to as “black boxes” because how they derive an output from a given input can be unclear, and this is troublesome if researchers need to explain why a model made a mistake. QSP is “more deterministic,” Truppo added, and it helps make the models more “explainable.”

Keep reading here.—CH

Presented By MGMA

GLP-1S

A pile of weight loss drugs

Jens Kalaene/picture alliance/Getty Images

The popularity of GLP-1s has skyrocketed in recent years, and a November 26 proposal from President Joe Biden’s administration to allow Medicare and Medicaid to cover the medications could make them even more prominent.

Medicare is currently barred by law from covering the drugs for weight loss and approves them only as treatments for diabetes or cardiovascular disease. To date, just 13 state Medicaid programs cover GLP-1s to treat obesity, while all states cover the drugs to treat diabetes.

Medicaid spending on GLP-1s hit $3.9 billion in 2023, and Medicare Part D spending on three GLP-1s hit $5.7 billion in 2022, per data from health policy research firm KFF. Allowing the payers to cover GLP-1s for weight loss would give approximately 7.4 million Medicare and Medicaid enrollees access at a lower cost, according to the Biden administration. Current out-of-pocket costs for the medications are around $1,000 per month.

But it could also be pretty expensive for the government. The Congressional Budget Office (CBO) estimates that Medicare coverage alone would increase net federal spending by roughly $36 billion by 2034. And the Centers for Medicare and Medicaid Services (CMS) says it would increase Medicaid spending by $15 billion over 10 years, according to KFF.

Keep reading here.—MA

RETAIL PHARMA

Walgreens earnings

Jhvephoto/Getty Images

Walgreens is sneaking in one more big headline before the year ends.

According to reporting from the Wall Street Journal, the pharmacy chain is discussing selling to private equity (PE) firm Sycamore Partners, a deal that could close early next year. This comes following a tumultuous year for the company, which announced it would close 1,200 stores in October and laid off more than 250 employees in November.

The PE firm is allegedly considering selling off pieces of the business or working with partners, sources told the Journal.

Following the news, Walgreens’s stock jumped 28%, its biggest single-day increase since 1980, according to Yahoo Finance.

Keep reading here.—NO

Together With Guild

VITAL SIGNS

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

Francis Scialabba

Today’s top healthcare reads.

Stat: 6.5%. That’s the average hospital operating margin as of October 2024, according to a Kaufman Hall flash report. (Becker’s Hospital CFO Report)

Quote: “Those countries that have built around their primary healthcare centers have gotten phenomenal results at a much lower cost.”—Atul Gawande, assistant administrator for global health at the US Agency for International Development, on the differences between the US and Portugal’s healthcare systems (Stat)

Read: How a chain of methadone clinics reportedly falsified patient records, per an investigation. (the New York Times)

Meet + greet: Connect with healthcare’s decision-makers + medical practice leaders in the Medical Group Management Association (MGMA). As a corporate member, you’ll gain access to marketing discounts, presales to conferences, and more. Get started.*

*A message from our sponsor.

A worker oversees the production of KN95 masks in Handan, North China's Hebei Province in 2022.

CFOTO/Future Publishing/Getty Images

Despite a $1b investment to boost domestic PPE manufacturing during the Covid-19 pandemic, most US startups have shut down, leaving hospitals and providers reliant on foreign suppliers. Imports topped $75b in 2024 alone. Experts warn this dependence could repeat pandemic-era shortages during the next health emergency. We explore the lessons learned, supply chain gaps, and potential strategies to build resilient, US-based PPE manufacturing before it’s too late.

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