Brent Vaughan

On the latest Vital Signs, Nikhil Krishnan and I had a ton of fun chatting with Dr. Atul Butte. Dr. Butte is a professor at UCSF, Chief Data Scientist of the UC Health System, and a co-founder of numerous healthcare startups. In our conversation, Dr. Butte shared his takes on healthcare AI opportunities, challenges, hype, and more. A few highlights: ⚡LLM use cases, data, and growth LLMs are already helping to solve the “drudgery” aspects of medicine, such as automatically drafting SOAP notes and patient messages. Dr. Butte is excited about future applications of LLMs that can help with the “cognitive” aspects: with difficult medical problems an LLM might be able to stitch together disparate pieces of information to generate a potentially novel solution. He also highlights that prompt engineering will become the next “coding language” as so much of leveraging LLMs is knowing how to ask them the right questions. Additionally, Dr. Butte discusses how since 2016, UCSF has been working to deidentify its patient notes so that it can query them to answer clinical questions and ultimately enhance patient care. ⚡The need for patient-facing AI As patients are increasingly able to access their own personal health data in nicely structured formats (e.g., EHRs, wearables), they desperately need more tools to help them interpret and make decisions using that data. Dr. Butte understands that these patient-facing solutions are challenging to get funded but he emphasizes that patients need to receive the benefits of AI sooner. ⚡Evaluating healthcare AI solutions In order to evaluate AI solutions, we often put human specialists – such as medical professionals – on the same tasks. Understanding that specialists often disagree with each other, a significant challenge arises in figuring out how we can evaluate AI considering we can’t just “average” all the specialist opinions. Dr. Butte points out that there still remains a massive gap in AI evaluation tools. Additionally, there are so many organizations that want to have a say in how healthcare AI is regulated that the landscape is uncertain. An awesome conversation with an expert on all things AI meets healthcare. Listen to the full episode below: Spotify: https://spoti.fi/3Wr3643 Apple: https://apple.co/4acwgan

82

8 Comments

Some VC investors believe that brick and mortar - referring to a physical presence of some kind - should be avoided at all costs. Yet, the track record of clinic and hybrid care businesses in health care indicates otherwise. ==> One Medical (sold for $3.9 billion to Amazon), Oak Street (bought by CVS for $10.6 billion), Lifestance (IPO at $7.5 billion market cap), and PE-backed Premise Health (acquired by OMERS Private Equity for $1.1 billion) If a clinic is indicated as the optimal way to deliver care for that patient population, there are creative ways to build and operate them. Full article below with advice and strategies on how to build and operate hybrid clinics from my teammate Anarghya Vardhana from Maveron, Amir Dan Rubin from OneMedical Group, Steven Eidelman from Modern Animal and more!

13

1 Comment

Wow! Recursion Pharmaceuticals has agreed to buy Exscientia for $688 million in an all-stock deal, merging two leading AI-driven drug discovery platforms. This acquisition enhances Recursion's pipeline and partnerships, gaining assets from Exscientia, known for collaborations with Sanofi and Merck. The combined entity will have nearly $850 million in cash to advance treatments for rare diseases and cancer. Recursion aims to "make medicines better and faster" by leveraging Exscientia's AI drug discovery capabilities. This deal underscores AI's transformative role in revolutionizing the traditionally slow drug development process. I believe this powerful merger will yield exciting innovations in the coming years. https://lnkd.in/eUwRtnPn #Biotech #AI #DrugDiscovery #Innovation #Healthcare #Recursion #Exscientia

19

AI and Med Tech in Focus   AI System Developed to Identify Pathology in Tissues Engineers at Washington State University have developed an AI tool that uses images of human and animal tissue to detect abnormalities faster and more accurately than people. The AI algorithm was trained using images from past studies that involved kidney, testes, ovarian, prostate, breast and lymph node abnormalities. The new model detected disease in minutes—current processes take humans several hours and require specialized teams to check each other’s work. It was also found to be more accurate, sometimes detecting instances that humans had missed. The engineers designed the system to handle the processing load of the high-resolution gigapixel images by breaking them down into smaller tiles but still retaining the overall context of the tissue sample—akin to the zoom feature on a microscope or phone camera. Aside from getting diagnostic results more accurately and quickly, the new system also shows promise in epigenetics (the study of molecular processes that change gene behavior without changing underlying DNA). Epigenetic researchers can perform analyses and get results that used to take a year or more in just a couple of weeks. VC Investors are always adjusting their "Play Book" with a variety of options for investing. Mikal Ventures is one of those alternatives, offering curated solutions to real world problems. Reach out if you have questions on how we can be of assistance and bookmark https://mikalventures.com/ for additional insights and information.

1

AI and Med Tech in Focus   AI System Developed to Identify Pathology in Tissues Engineers at Washington State University have developed an AI tool that uses images of human and animal tissue to detect abnormalities faster and more accurately than people. The AI algorithm was trained using images from past studies that involved kidney, testes, ovarian, prostate, breast and lymph node abnormalities. The new model detected disease in minutes—current processes take humans several hours and require specialized teams to check each other’s work. It was also found to be more accurate, sometimes detecting instances that humans had missed. The engineers designed the system to handle the processing load of the high-resolution gigapixel images by breaking them down into smaller tiles but still retaining the overall context of the tissue sample—akin to the zoom feature on a microscope or phone camera. Aside from getting diagnostic results more accurately and quickly, the new system also shows promise in epigenetics (the study of molecular processes that change gene behavior without changing underlying DNA). Epigenetic researchers can perform analyses and get results that used to take a year or more in just a couple of weeks. VC Investors are always adjusting their "Play Book" with a variety of options for investing. Mikal Ventures is one of those alternatives, offering curated solutions to real world problems. Reach out if you have questions on how we can be of assistance and bookmark https://mikalventures.com/ for additional insights and information.

1

M13 is thrilled to lead the Series A in RadiantGraph which is focused on personalization in healthcare. As we continue to invest in early stage companies it is abundantly clear that the biggest indicator of success is the founder and his or her ability to execute on their vision of the future. In this case, I don't think I have seen much better founder-market fit than we have with founder and CEO Anmol Madan. We believe in his vision: in order to have the best patient outcomes in healthcare we need increased personalization and AI is the breakthrough to get us there. Anmol started one of the pioneering digital health companies Ginger and then was Chief Data Scientist at Livongo and Teledoc. He has done it all: early stage, late stage, public company. And he deeply understands the nuances of the healthcare market from all angles which is critical for success. While there are many players building healthcare-specific AI capabilities, RadiantGraph is focused on outcomes: The platform is already processing personalization models for more than 3.5 million people, despite launching just last year. Excited to partner with my friend Adam D'Augelli and the great True Ventures again and Morgan Blumberg who has been deep in the healthcare market with me for many years. More on our thesis in the blog below. https://lnkd.in/evDDmC3W

72

4 Comments

At the annual Decoding Bio summit, I sat down with Brad Loncar of BiotechTV to discuss how we at Bessemer Venture Partners are thinking about where value accrues for AI in biotech. The short answer: Ultimate value accrues at the therapeutic level. Longer answer: If AI improves drug discovery along any axis (speed, efficiency, cost, new biology, novel chemistry), and becomes a near-ubiquitous tool in the discovery process, value will accrue up the stack. Vertical integration of discovery and development will be essential to capture this value, and the greatest moats will (still) be built in clinical development – trial design, biomarker identification, indication selection, and raw execution.

169

4 Comments

How do we minimize the number of protocol amendments and increase the operational feasibility of our clinical trials? This article below points out the benefits of using data, conversations and real world data to enhance the feasibility of the protocol design and inclusion/exclusion criteria: 1) Are we being too strict on our criteria in order to "control" for data variability? 2) Do are criteria allow for the intended patient population in the real world (if not, they need to) 3) How realistic is your design in how the study sites actually work? How they see and treat patients? How is your company ensuring the design meets these requirements? https://lnkd.in/gzJzFd-3

4

1 Comment

San Diego investor event: Aquillius Medical Devices & Diagnostics Symposium, taking place on Wednesday, May 15th, from 12:30 PM to 7:00 PM. This exclusive event brings together leading industry experts, groundbreaking startups, and prominent investors like yourself. Here's what you can expect: Expert Insights: Gain valuable knowledge from renowned speakers on topics critical to medtech success, including design for manufacturing, intellectual property protection, regulatory navigation, and fostering successful startups. Early Access to Innovation: Witness the future of healthcare firsthand as promising Aquillius incubees showcase their innovative medical device and diagnostic solutions during a dedicated startup showcase. Networking Opportunities: Connect and build relationships with other investors, entrepreneurs, and industry leaders shaping the medical technology landscape. This is a unique opportunity to: Identify promising investment opportunities in the medtech sector. Gain valuable insights from leading experts. Network with a community of like-minded investors and industry professionals. Space is limited, so RSVP today! Medical Devices Symposium (Investor Registration) Tickets, Wed, May 15, 2024 at 12:30 PM | https://lnkd.in/gjWDU9pz

4

Coming soon to Podcast Channel near you. Check out the YouTube Channel and save your spot by being one of the first to subscribe. First episode to air soon!!!! https://lnkd.in/gNyu_aip #decodinghealth #science #knowledge

6

Takeda's CEO's annual letter hits on some key themes that many biopharma CEO's are converging on: value-based care, price transparency, breaking up the middlemen, and driving healthcare access and equity. "For several years I have been outlining Takeda’s thinking on health equity—including advocating for a transition to value-based health care that pays for outcomes and care quality, emphasizing the need to prepare for the next pandemic by ensuring global vaccine equity and explaining how the protection of intellectual property rights is essential to incentivize investment in R&D. One area where we would like to see greater progress this year is pharmacy benefit managers reform. We support efforts in Congress to delink rebates from list prices or wholesale acquisition cost. It is a complex system, but the bottom line is that the current system creates misaligned incentives that ultimately result in higher costs for the system and higher out-of-pocket costs for patients. One potential way to address these challenges is through greater transparency. Transparency at the point of purchase for patients would empower them to make decisions knowing exactly what their costs will be. This could lower costs for the entire system by building in greater pricing accountability along the chain so that no stakeholder can benefit from the inefficiencies that result in the prices that patients pay today." At COEUS, we are working with the world's leading biopharma companies to help transition them from a broken FFS model towards value-based care. We have built the world's leading platform that hosts the biggest CGT commercial launches, and rapidly moving into Oncology, Obesity/ Diabetes, and beyond. 1. Enabling Value-Based Healthcare: Our solution facilitates the transition to value-based healthcare by providing a powerful tool for creating and managing contracts that pay for outcomes and care quality. 2. Enhancing Transparency: By aggregating disparate healthcare data from various sources, our platform provides unprecedented transparency into the entire healthcare ecosystem. This empowers payers, providers, and patients to make informed decisions and helps stakeholders across the value-chain to tie price and value to therapeutic outcomes. 3. Driving Innovation: Our platform's ability to evaluate complex rules for value-based contracts, real-world evidence studies, and health equity measurements fosters innovation in the pharmaceutical industry. By providing a tool to measure the impact of new solutions, we help companies drive medical advancements while ensuring equitable access. 4. Improving Access and Affordability: Our solution helps identify areas where access and affordability can be improved without compromising innovation. By providing data-driven insights into the effectiveness of various interventions, we enable stakeholders to make informed decisions that benefit patients and the healthcare system as a whole. Visit https://coebra.ai/.

10

With GLP medications like Ozempic, Wegovy, Mounjaro, and Zepbound making headlines, we’re launching a new 3-part series starting today on Raising Health to explore their impact. First up, we have Carolyn Bradner Jasik, MD, CMO at Omada Health, who joined me to discuss the impressive weight loss results and broader health benefits of GLP-1s, such as improvements in heart, kidney, liver conditions, and even addiction. We also touched upon the critical issues of accessibility, affordability, and the need for comprehensive support programs to manage side effects and ensure proper use. Listen to our full conversation here: https://lnkd.in/gDTYHw-6

95

3 Comments

An insightful (and inevitable) panel at HLTH USA, 'Straight to the Source: A Middleman Saga,' tackled the pressing issue of price transparency in the pharmaceutical supply chain. Josh Flum from LRVHealth kicked off the conversation with a question about the complex pricing dynamics between PBMs and pharmaceutical manufacturers. He highlighted the growing tension between list prices, post-rebate pricing, and how patients ultimately bear the brunt of the costs, with increasing finger-pointing between stakeholders. He raised the crucial question: How do we find a balance between price, payment for innovation, and patient access? Lori Reilly, COO of PhRMA, emphasized the vital role that competition plays in reducing drug prices. She referenced the case of hepatitis C treatments, where competition between branded products successfully drove prices down. However, Lori pointed out a significant challenge: while insurers and PBMs benefit from these price negotiations, patients often don’t see the savings. Instead, many patients with high deductibles are left paying the full list price at the pharmacy counter, despite the deep discounts negotiated behind the scenes. Lori shared a startling example from a study of Medicare Part D, where 79 of the top 100 most rebated drugs resulted in patients paying four times more than insurers. To address this, she proposed three key changes: 1. Breaking the link between PBM payments and list prices, which incentivize higher costs. 2. Passing discounts directly to patients at the pharmacy counter to reflect the real savings negotiated. 3. Increasing transparency in the system to ensure that patients aren't left paying unfairly inflated prices. Rick Gates, SVP of Walgreens, focused on improving patient engagement and pharmacy infrastructure. He stressed the importance of digital enhancements like check-in tools and scheduling systems to simplify the pharmacy experience for consumers. Laura Jensen from Amazon Pharmacy echoed the call for greater transparency and simplicity in healthcare access. She emphasized that healthcare remains far too complicated and that Amazon is focused on making healthcare as seamless, accessible, and transparent as any other service they provide. With increasing pressure from policymakers on drug pricing and innovation, this discussion was inevitable. The healthcare industry is reaching a critical point where we need to find a balance between affordability and fostering continued innovation. #HLTH2024 #HealthcareInnovation #PriceTransparency #PatientAccess #DigitalHealth #PharmaPricing #FutureOfHealthcare

14

1 Comment

Boston's vibrant health tech scene is fueled by world-class accelerators and incubators, empowering startups to drive digital health, biotech, and life sciences breakthroughs. Here’s a look at some key players: MassChallenge HealthTech—This accelerator helps startups transform health solutions across digital and biotech. It connects entrepreneurs with resources and mentors to drive meaningful change. LabCentral – A coworking lab space offering shared resources and lab facilities, LabCentral supports biotech and health tech startups by providing them with an innovative, collaborative environment. #Pagliuca Harvard Life Lab – Located at Harvard, this incubator offers lab and office space to promising biotech and life sciences startups, helping them scale groundbreaking health tech solutions. Richi Entrepreneurs – With a global outlook, Richi Entrepreneurs offers a unique two-week immersion for international health tech startups, connecting them with Boston’s local mentors, investors, and industry leaders. Xontogeny – Specializing in life sciences, Xontogeny partners with early-stage health tech companies, providing strategic guidance and operational support to accelerate their journey from concept to market. These incubators and accelerators are not just nurturing innovation—they’re powering the next generation of health solutions! 🌟 #BostonHealthTech #InnovationEcosystem #Biotech #HealthTech #StartupAccelerators

16

Fabulous to be on the investor panel for Mintz’s Life Sciences Pitch Event today, on yet another glorious fall day in Boston. ☀️🍁 (Although perhaps all meetings that start at 8am should come with good weather?) Key feedback shared by our panel: 🔹 Ensure your target market is clear - especially when the population for your relevant indication is highly heterogenous 🔹 Share your current assumptions about how your product may be used (e.g., chronically vs. episodically) and open questions 🔹 If you're exploring a range of commercial use cases, share how you anticipate prioritizing across them over time 🔹 If your GTM strategy requires you to displace heavily entrenched solutions and/or processes, share how you will enable these transitions 🔹 Note the specific set of milestones to be achieved with investment 🔹 Always include target timelines and potential paths to exit Thank you to the incredible lineup of entrepreneurs who pitched today, and please stay in touch! Thank you to Dean Farmer and Charlie C. for facilitating today's event. Thank you to panelists David Fogel, CPA, Ben Littauer (he/him), Molly Hoult, and Richard Wagner for your contributions. Great to meet you, and thank you for all of your help, Emily (Krasowski) Yanachkov and Diana Malkin. #lifesciences #pitchevent #investor #panel #boston

86

4 Comments

Some great advice in this interview — featuring Jeffry Weinhuff of Visionary Ventures — relevant to all sub-sectors of #medtech. My favorite line is “investment capital is not tuition.” 😂 But the best advice stems from the insight that good exits via IPO or M&A processes with multiple buyers competing for your company require that most medtech companies must prove their value via strong commercial metrics. And doing that takes a lot of time, expertise and money. Plan, hire and raise capital accordingly. At Vensana Capital, our investment process centers on a deep analysis of every aspect of getting a breakthrough medtech innovation to market, no matter what stage of development a company is at today. We like entrepreneurs who believe their innovation can be highly impactful to patients. We love the ones who want to leave no doubt. https://lnkd.in/eDsUqgn6

81

1 Comment

I've been spending a lot of time thinking about the productivity problem in life sciences R&D - which, in my opinion, seems to be the single biggest problem to solve in all of life sciences.   Inefficiency takes on an entirely new meaning in biopharma vs. other industries where it simply amounts to sunk cost. In biopharma - particularly for the long tail of smaller biopharmas - it can be the difference between missing and meeting milestones, securing and not securing funding, life and death. Being efficient is increasingly a requirement for survival. Tech certainly isn't a golden bullet, but we see a lot of opportunity for it to help move the needle, especially if it's in combination with behavioral/cultural change.   Over the last month or so I've been sharing our high-level thoughts on this topic through a series of blog posts, the last of which was published today (see comments for links to the prior two posts). This really only begins to scratch the surface on our thinking here and we're eager to chat with folks in greater detail. If you’re working in this space or have insights to share, I'd love to hear from you! https://lnkd.in/g9EsD5b3

80

8 Comments

The (Healthcare) Ground Beneath Our Feet… This year it is likely that over $10 billion will be invested in the digital health sector – a robust amount, no doubt, but inconsequential when compared to the amount of capital tied up in healthcare real estate assets, which is estimated to be $1.2 trillion by Jones Lang Lasalle. Of that amount, approximately $790 billion is in the hospital sector while the remaining $490 billion is in medical office assets. It is estimated that there are 48.6k facilities with 3.4 billion square feet of healthcare real estate, 42% of which are owned by REITs and another 33% held by other private investment vehicles. Much of the digital health investment is meant to make the physical healthcare infrastructure more productive: greater operating efficiencies, greater patient throughput, more relevant personalized care models with better outcomes. As the healthcare system is being pushed to be more distributed to lower cost sites of care, accelerated now by the rapid proliferation of automation and AI capabilities, the potential impact on healthcare infrastructure assets will be profound. Thoughts on what that might look like... https://lnkd.in/eTfAdUbS #digitalhealth Flare Capital Partners

99

5 Comments

New CEOthreesixty cohorts are coming soon! Are you an early stage life science CEO looking for connection and peer networking? Check out the link below for information on how you can get involved in the next round! David H. Crean John Foley Deloitte #biotech #lifescience #meddevice #startup #egc

14