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Hims offers Zepbound, Lilly offers a cold shoulder

April 3, 2025
Health Tech Correspondent

Good morning health tech readers!

Today: telehealth drama, AI chatbot drama, cybersecurity drama.  

Reach me: mario.aguilar@statnews.com

Telehealth

Hims offers Zepbound

Earlier this week, Hims and Hers Health announced it was now offering prescriptions for Eli Lilly's obesity drug Zepbound, which is a little amusing because of how much time and money Hims has spent railing against big pharma. But where a number of telehealth companies are providing access to vials of the branded drug through official partnerships, this appears to be something else. Lilly was quick to disavow any formal ties between the companies, adding that Zepbound "can be prescribed by any licensed healthcare professional." 

The more notable news is that Hims has delivered on its promise to offer generic liraglutide, an earlier generation GLP-1 drug that was approved in 2010 to treat diabetes. FDA approved the first generic in December. Hims is marketing the drug on its website for weight loss treatments, noting in a disclaimer that it "may be prescribed off-label for weight loss at a healthcare provider's discretion."

With the boom in popularity of GLP-1 drugs, telehealth companies have raced to cash in. While Lilly's tirzepatide, the scientific name for Zepbound, and Novo Nordisk's semaglutide (aka Ozempic/Wegovy) were in short supply, companies like Hims could legally market copies of the drugs produced by compounding pharmacies. With the drugs off the FDA's shortage list, they'll have to stop. As Hims seeks to keep offering care, generics and selling the name-brand drugs are alternatives. The company continues to prescribe compounded versions of semaglutide at different doses than the FDA-approved drug.

Relatedly: Lilly this week sued two compounding pharmacies for falsely marketing "personalized" doses of tirzepatide. 


medical devices

Experts brief lawmakers on device cybersecurity risks

Brittany Trang writes: On Tuesday, a House of Representatives subcommittee held a hearing on medical device cybersecurity, motivated by the discovery earlier this year of a backdoor to a patient monitoring device that led to an IP address at a Chinese university. At a high-level, Republicans asked expert witnesses about device security and if the U.S. needs to be worried that China will use medical devices to disrupt the healthcare system. Democrats asked about the cuts to HHS, FDA, and NIH.

Kevin Fu, a professor at Northeastern University and previously the acting director of medical device cybersecurity at FDA's devices center, fielded many of the questions about the regulator's ability to handle medical device cyberattacks or reports of vulnerabilities while losing employees as part of the mass firing at HHS. He said that the team was a "skeleton crew" during his tenure a few years ago.

"If you lose one, you're probably going to have a much harder time responding to simultaneous threats, which seem to be a natural course of the future," he said. "If you lose two, we might just not have a response."

During the hearing, Healthcare Sector Coordinating Council executive director for cybersecurity Greg Garcia also brought up a proposal his industry group had sent to the Trump administration regarding the wildly unpopular proposed update to the HIPAA security rule, which governs health care cybersecurity minimums. HSCC's cybersecurity working group advised "that the Administration suspend any further consideration of the [HIPAA Security update] as written." Instead, Garcia wants the industry to be able to negotiate what's in the rule — particularly about how prescriptive the government is about how to achieve tight security.

"They give us the what, we give them the how, and then we decide which of these set of controls that we've agreed upon ought to be mandatory," he told STAT in an interview. "That's my nirvana."


health IT

TEFCA contractor still funded, despite fears

Also from Brittany: As we reported last month, the health IT world is anxiously waiting to see what happens to TEFCA, the government-supported national health information sharing framework, in the new administration. There are rumors that the government ended its contract with the Sequoia Project to coordinate TEFCA — or that it might.

An alarming piece of evidence cropped up: An HHS webpage titled "Ending Wasteful Spending" itemizes the TEFCA contract on a list of cancelled contracts. But multiple sources familiar with the situation told STAT that the contract is ongoing and that TEFCA is proceeding as normal for now. It's unclear how the list was compiled or if it's at all indicative of future cancellations. (Let us know what you know.)



mental health

About that AI therapy study...

Over the last week, there has been a lot of hype about a randomized trial showing a generative AI therapy bot improved symptoms of people with depression, anxiety, and eating disorders. In this week's AI Prognosis newsletter, Brittany talked to experts who threw a dash of cold water on the study. A central critique is the study's waitlist control. Basically, the study compared something to nothing.

Some argue this approach is appropriate because often people don't have easy access to therapists and so the alternative to a bot is no treatment. The more rigorous way to study this is to give people some kind of activity that mirrors the attention and time people might give an intervention without whatever you think the treatment's secret sauce is. Often, these placebos can be very effective in ways that undermine the performance of treatments that have been years in development.

In other words: This study is step one. Now they have to prove it.

Talkspace Medicare bits

Buried in a readout of investor meetings with virtual mental health company Talkspace, analysts at William Blair delivered some fresh insight on the company's expansion into Medicare. Announced last year, the expansion is part of Talkspace's effort to cover as many lives as possible. But while Medicare represents a huge potential market, it's a tough one for a virtual care company to crack

Talkspace is now up and running with Medicare in 48 states and was apparently waiting for this year to begin marketing to the population in earnest. As CEO Jon Cohen told me last year, marketing to seniors requires a distinct strategy compared to other populations. 

The analysts are optimistic but measured, saying that the nationwide rollout in Medicare and anticipated expansion to Medicare Advantage "represents a significant growth opportunity" while pointing out that "there is little data on likely capture and utilization rates, how long Medicare lives may stay on the platform, and overall reimbursement levels." 

deals

Recent deals of note

  • Layer Health a company that develops tech to automate chart reviews, raised a $21 million Series A round led by Define Ventures with participation from Flare Capital Partners, GV, and MultiCare Capital Partners.
  • RapidClaims, a company developing automation tech for revenue cycle management, announced it raised $11 million including its seed and Series A rounds. Investors include Accel and Together Fund.
  • Navina raised a $55 million Series C round led by Goldman Sachs. Among the capabilities the company advertises is "AI-powered risk adjustment software."
  • Siemens announced it plans to acquire Dotmatics for $5.1 billion. Dotmatics makes life science R&D software.

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  • From Nobel buzz to hiring halt: Trump funding cuts hobble UW protein design startup machine, GeekWire
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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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