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Two AI companies claim they use AI to design drugs from scratch. Do they?

February 11, 2025
Health Tech Correspondent

Good morning health tech readers!

Today, a story that shows why you should be skeptical of "AI drug company" claims.

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Reach me: mario.aguilar@statnews.com

Artificial intelligence

Two AI companies claim to use AI to make drugs. Do they?

Awesome story alert: In the race to use novel computational techniques to develop drugs, a number of companies have declared, perhaps prematurely, that their experimental compounds are developed by artificial intelligence. In a new deep dive, STAT's Brittany Trang examines the efforts of Generate Biomedicines and Absci, and finds that both companies hype their AI abilities in ways that are emblematic of how "AI pharma and biotech companies' breathless claims can potentially mislead anyone not intimately familiar with the details of drug development, or machine learning."

For example, Brittany found that drugs being developed by both Generate and Absci were modified versions of existing antibodies. In interviews, the companies claim that their undisclosed efforts use newer technologies that are really dreaming up drugs from scratch.

Read more here 


denied by ai

Crucial moment for AI claims denial lawsuit

A federal judge will soon decide whether to dismiss a lawsuit against UnitedHealth Group alleging that the company and its subsidiary NaviHealth relied on flawed algorithms to cut off essential rehabilitative care to sick and injured Medicare Advantage beneficiaries, STAT's Bob Herman reports.

The class action lawsuit was filed in 2023 after a series of STAT stories revealed the practices. UnitedHealth has denied the allegations and moved to dismiss the case in May. A judge could decide as early as this month if the case can proceed. If so, attorneys may be able to review the company's internal communications.

Read more here


telehealth

Senators ask FDA to look into Hims' Super Bowl ad

Hims' Super Bowl ad attacked the weight loss industry for generating huge revenues without actually helping people. Now Sens. Dick Durbin (D-Ill.) and  Roger Marshall (R-Kan.) have asked Food and Drug Administration  to look into whether the ad, which was seen by millions during the second half of the big game, "risks misleading patients by omitting any safety or side effect information" about the weight loss drugs that Hims promotes. They say that they "believe FDA may already have the authority to take enforcement action against marketing that may mislead patients about this company's products." Enforcement actions could include warning letters or civil penalties. 

As we pointed out previously, the Hims campaign was a transparent effort to promote its service that offers compounded copies of the GLP-1 drug semaglutide. Importantly, the ad does not disclose the many potentially serious side effects of the drug. The letter from lawmakers follows growing concern that telehealth companies are overstating the benefits of GLP-1 drugs without noting the drawbacks or that compounded drugs are not FDA approved. In a statement, Hims told me that the ad follows the law, but it did not say why it believes that it should not have to disclose the same side effect information as pharma ads.

Read more here



industry news

Doximity's earnings, Talkspace's privacy fail

  • Doximity reported impressive earnings for the quarter that ended in December, including 25% year over year revenue growth. The company raised its guidance for its fiscal year, which ends in March, to between $564.6 million and $565.6 million. The company is profitable and expects adjusted earnings of at least $306 million for the year. Doximity, which went public in 2021, is one of the big winners of the health tech boom. What I think is worth keeping in mind is that even though it offers services for health care — you can use it to connect with doctors for virtual appointments, for example — it's fundamentally an advertising business that sells the eyeballs of clinicians on its network to pharma and other companies. 
  • Virtual mental health company Talkspace got in hot water after its government-funded services for teens in New York, Baltimore, and Seattle were caught sending data to TikTok, Meta, Snap, and other social medial companies, Gizmodo reported. I can't decide whether I'm surprised this is still happening. Previous investigations by STAT and The Markup revealed websites for telehealth companies and hospitals were sending personal data to social platforms. This practice is common across the web as it helps e-commerce companies and publishers, like STAT, with advertising and marketing efforts. But the technique is frowned upon when you're dealing with sensitive data about patients seeking health care. 

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What we're reading

  • These documents are influencing the DOGE-sphere's agenda, MIT Technology Review
  • Amid shakeup in U.S. science, researchers express alarm over integrity of key genetic databases, STAT
  • Elon Musk's demolition crew, ProPublica

Thanks for reading! More on Tuesday - Mario

Mario Aguilar covers how technology is transforming health care. He is based in New York.


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