Healthcare AI Guy Weekly | 8/13

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Highlights if you’ve only got 2 minutes…

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Recursion and Exscientia to merge

Recursion and Exscientia, two publically traded AI-driven biotechs, are merging to create a powerhouse with $850M in cash, $200M in expected milestones, potential $20B in royalties, and 10 clinical readouts expected over the next 18 months, the merger aims to accelerate drug discovery and reduce costs. Both companies, whose stocks have taken a hit since their 2021 IPOs, see the merger as the best way to leverage their strengths—Recursion's expertise in biology and Exscientia's expertise in chemistry. The combined company, keeping the Recursion name, aims to deliver innovative treatments in oncology, rare diseases, and infectious diseases, with no major competitive overlap. Recursion’s Chris Gibson will remain CEO, while Exscientia’s David Hallett becomes Chief Scientific Officer. (link)

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New breakthrough device coverage

Patients may gain faster access to novel medical devices like Elon Musk's Neuralink brain implant and AI-powered cancer technology under a plan the Biden administration finalized last week. The Transitional Coverage for Emerging Technologies (TCET) pathway will expedite Medicare coverage for breakthrough devices after FDA approval, offering temporary coverage while additional research is conducted. CMS will select five devices annually, with coverage lasting up to five years. However, this new process is more complex than previous policies, potentially limiting its appeal, despite streamlining access and replacing a Trump-era policy that offered four years of automatic coverage. (link)

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AI breakthrough accurately predicts diseases

Researchers have developed a groundbreaking AI model that predicts major diseases like heart conditions, diabetes, and cancer with 95% accuracy, far surpassing existing methods. Using deep learning and the SEV-EB algorithm, the model analyzes patient data to identify crucial health markers, allowing doctors to prioritize relevant information. It leverages digital health records for personalized risk assessments, enabling earlier interventions. This innovation could revolutionize early diagnosis and treatment, potentially saving millions of lives globally, much like how AlphaFold transformed protein folding predictions in science. (link)

Tools & Partnerships 🔧

Latest on business, consumer, and clinical healthcare AI tools and partnerships…

TOOLS

• AI detects hidden heart attack risk: An AI tool from Oxford University spinout Caristo Diagnostics, now in NHS trials, detects heart inflammation that standard CT scans miss and can predict heart attack risk up to 10 years in advance. It could revolutionize heart attack prediction, with a potential NHS rollout soon. (link)

• AI speeds up schizophrenia cure: Researchers at Uppsala University recently used AI to accurately predict 3D structures of receptors linked to schizophrenia and depression treatments and speed up possible treatment strategies. (link)

• Tampa General Hospital brings AI to the operating room: Tampa General Hospital is deploying Apella's AI platform to optimize OR staffing and predict surgery durations. The AI uses predictive models and computer vision to improve scheduling efficiency, aiming to reduce patient time in the surgical suite. (link)

• Ascension hospital rolls out AI to residents: Nashville, TN-based Ascension Saint Thomas is introducing an AI-clinical documentation assistant, Suki, to its second- and third-year internal medicine residents. (link)

• World’s first AI-driven hearing aid for clearer speech: Switzerland’s Sonova introduced Sphere Infinio, the first hearing aid utilizing real-time AI to improve speech clarity from background noise. (link)

PARTNERSHIPS

• University Hospitals + Aidoc: Ohio-based University Hospitals Health System has deployed Aidoc’s AI platform, aiOS, across 13 hospitals and dozens of outpatient facilities to catch conditions like pulmonary embolism, coronary artery calcification and intracranial hemorrhage expediently. Aidoc’s platform has more than 30 care pathways and 17 FDA-cleared algorithms. (link)

• Mayo Clinic + SandboxAQ: Mayo Clinic is partnering with Google spinout startup SandboxAQ to study a new medical device that uses quantum sensing technology and advanced AI algorithms for rapid diagnosis in cardiac care, such as potentially detecting a heart attack. (link)

• Abridge + Reid Health: Rural Indiana health system Reid Health is the latest health system to ink a generative AI deal with Abridge and now expanding access systemwide to automate clinical documentation. (link)

• Medstar Health + RLDatix: The mid-Atlantic based healthcare provider is partnering with the risk management solution on AI-based tools for analyzing patient safety events. (link)

Deal Desk 💸 

Spotlight on latest capital raises, M&A, and investments…

FUNDING

• Guidehealth, an AI-powered value-based care enablement startup based in Dallas, raised $14M in seed funding led by nonprofit health system Memorial Hermann. (link)

• Feeling Great, an AI-powered therapy startup raised $8M in seed funding co-led by Learn Capital and TitletownTech, with participation from Lux Ventures, Wavemaker Three-Sixty Health, Pacific Health Ventures and Treble Capital. (link)

MERGERS & ACQUISITIONS

• Recursion + Exscientia: Recursion (NASDAQ: RXRX) to merge with Exscientia (NASDAQ: EXAI) in an all-stock deal. The AI-enabled biotechs merger will create a company with $850M in cash and 10 upcoming clinical readouts over the next 18 months. (link)

• Health Catalyst + Lumeon: Health Catalyst (NASDAQ: HCAT) acquired Lumeon, a care management automation platform. Lumeon has operations in the UK which will help Health Catalyst expand internationally. (link)

• Stryker + care.ai: Stryker announced that it signed a new agreement to pick up care.ai, a developer of smart hospital systems and room management solutions. That includes ambient cameras and sensors that can monitor patients autonomously. (link)

• SoundHound + Amelia AI: SoundHound, an AI company that makes voice interface tech, acquired Amelia AI, which offers custom AI agents, for $80M to expand into financial services, insurance, healthcare, and retail arenas. (link)

Other Relevant News 🔍

News, podcasts, blogs, tweets, resources, etc…

• 4 health system execs among 100 most influential AI leaders (link)

• The case against AI chiefs for health systems (link)

• Tim Walz on healthcare: 8 things to know (link)

• AI isn't a 'quick fix' for hospital workforce woes (link)

• DAX Copilot sales take off for Microsoft (link)

• Amazon diving deeper into healthcare AI (link)

• Why Mayo Clinic is partnering with an AI company (link)

• Cleveland Clinic launched a Quantum-AI Biomedical Frontiers Fellowship Program (link)

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Visuals of the Week 📸

Funny memes, cool pics, and interesting data from around the web…