UBS Equities-US Thematic Research _The Pulse Monitor Recent US healthcar...-116921128

ab31 July 2025Global ResearchUS Thematic ResearchThe Pulse Monitor: Recent US healthcare trends in public and private marketsThe Pulse Monitor is a report combining the views of UBS analysts on key developments in healthcare, on both the public and private side.Inside the report, we include details on recent updates within HHS (including the sudden departure of Trump appointee Vinay Prasad), our takeaways from Decoding Bio's AI x BIO Summit, and an overview of recent deal activity across public and private companies within healthcare.See below for a detailed overview of what is inside the report:1. Takeaways from AI x BIO Summit: We attended Decoding Bio's AI x BIO Summit on 7/22. We thought that there was greater focus on AI in drug design (vs other areas of drug discovery and development) across the companies we spoke with. However, while we thought there was optimism, we thought that AI applications throughout the drug development process seemed like a longer-term opportunity. We felt that the conversations on AI were level/constructive amongst investors/executives within the space.2. Updates at the FDA: Trump posts letters to pharma demanding lower drug prices, Vinay Prasad, a controversial figure heading CBER, left the FDA abruptly and will be replaced by George Tidmarsh in the interim. We think this introduces more regulatory uncertainty and could weigh on the sector, particularly for verticals with regulatory engagements with CBER (e.g., gene therapies, vaccines). The FDA also announced plans to introduce a new regulatory framework for vaccine approvals focused on improving efficacy.3. Recent licensing deals: We include details on licensing deal activity throughout the past weeks, including: MDGL and CSPC Pharmaceutical announced a licensing agreement for CSPC's oral GLP-1 agonist, Formation Bio (private) licensed anti-CD226 antibody from IMIDomics (private) and plans to develop the asset in ulcerative colitis, Boehringer Ingelheim (private) and Re-Vana Therapeutics (private) announced an agreement to develop extended-release therapies for ophthalmic diseases, GSK and Hengrui announce agreements across 12 drugs (including PDE3/4 inhibitor), NVS and Matchpoint (private) enter a license agreement to develop and commercialize oral covalent inhibitors against a transcription factor implicated in inflammatory diseases, and LLY and Gate Bioscience (private) announce a license agreement to develop molecular gate therapeutics.4. Takeaways from crowding data in healthcare: We include an analysis of recent crowding data among UBS healthcare baskets. We saw the greatest increase in crowding WoW in the cardiovascular and pulmonary/inflammatory baskets and the greatest decreases in crowding in the life sciences tools/services basket. 5. Top 25 funding rounds in healthcare: The top 25 funding rounds from the last 30 days. We also highlight capital invested by sub-sector (for deals over $1M) in the trailing 30 days, where we note the greatest change