What’s Next for Healthcare in 2025?

As we step into 2025, I’ve been reflecting on what’s in store for the healthcare sector—and let’s be honest, 2024 was a pretty eventful year. From groundbreaking obesity treatments to AI making waves in drug discovery, the industry has been buzzing with innovation. But was 2024 the beginning of something bigger, or just a flash in the pan? Here’s my take.

The Highlights of 2024

2024 gave us plenty to talk about. Obesity drugs like Wegovy and Mounjaro weren’t just hitting the headlines—they were transforming the conversation around weight loss and even cardiovascular health. Wegovy’s ability to cut the risk of major cardiovascular events by 20%? That’s not just impressive; it’s game-changing. On the tech front, AI took center stage. Pharma companies started using AI not just to speed up drug discovery but to rethink how clinical trials are run. Medtech wasn’t far behind either—players like GE HealthCare and Philips leaned into generative AI to revolutionize workflows and diagnostics. But not everyone had a great year. Amgen’s stumble in the obesity-drug race was a stark reminder of how competitive and high-stakes this space can be. And some health insurers, particularly those with pharmacy benefit management units (PBMs), faced tough times as their stocks took a hit amid regulatory uncertainty.

Winners and Losers: Who Stood Out?

The Big Winners:

• Eli Lilly: With its runaway success from Mounjaro and Zepbound, Eli Lilly proved it’s not just playing the game—it’s rewriting the rules.
• Novo Nordisk: Wegovy’s success cemented its position as a leader not just in obesity but also in broader health impacts like cardiovascular care.

The Losers:

• Amgen: Missing the mark in obesity-drug trials put it on the back foot.
• PBMs (Cigna, Humana, CVS): Regulatory scrutiny took its toll, and these players saw significant market setbacks.

What Does 2025 Look Like?

So, what’s coming next? If 2024 was about breakthrough moments, 2025 will likely be about turning those breakthroughs into lasting impact. Here’s what I think we’ll see:

1. M&A Frenzy:
   Expect to see more mergers and acquisitions as companies double down on scaling up or filling gaps in their pipelines. The IPO scene might heat up too, which is a promising sign for innovation.
2. AI Everywhere:
   AI is here to stay, and it’s going to keep reshaping everything from drug development to patient care. Those companies that find smart, scalable ways to integrate AI will be the ones to watch.
3. Cancer Vaccines on the Horizon:
   This is a space that’s been quietly gaining momentum. Early results from trials are promising, and we could be looking at some real breakthroughs in oncology.
4. MedTech’s Next Phase:
   Medtech companies that embrace cutting-edge innovations like generative AI are poised to outpace the competition. It’s not just about devices anymore—it’s about ecosystems of care.

Should We Be Optimistic?

In a word, yes. Healthcare in 2025 looks like a space brimming with potential. But, as always, there will be challenges. Whether it’s regulatory hurdles, market competition, or just the ever-present pressure to innovate, companies will need to stay sharp. The biggest lesson from 2024? Being bold pays off. Whether it’s diving into AI or rethinking the potential of a product like Wegovy, those willing to take risks are the ones redefining the industry.

Who Will Win in 2025?

Probably AI-first companies in healthcare and those bridging the gap between science and patient-centric solutions. But let’s not count out the underdogs—there’s plenty of room for surprises in a sector as dynamic as this one. 2025 is shaping up to be a fascinating year. Here’s to breakthroughs, bold moves, and better healthcare for everyone. Let’s see...