The Readout Loud 382: Biotech's year in review
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Dec 18, 2025 In this discussion, venture capitalist Bruce Booth, a partner at Atlas Venture, shares insights from his annual biotech year-in-review report. He argues that the biotech sector may be rebounding, pointing to recent stock performances and clinical innovations. Booth discusses the potential surge in IPOs for 2026 but cautions about the risks of poor-quality companies going public. He also analyzes the effects of DTC offerings by Eli Lilly and Novo Nordisk, which could lead employers to cut funding for weight-loss drugs. Finally, he highlights the changing dynamics in venture capital as AI draws investment away from biotech.
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HCA Directs Employees To DTC Weight-Loss Pills
- HCA Healthcare told employees it will not cover Wegovy and Zepbound and directed them to buy directly from pharma programs.
- Elaine Chen found employee examples showing DTC can be costlier for some workers despite employers' claims of lower cash prices.
DTC Offers May Weaken Employer Coverage
- Employers may drop insurance coverage for GLP-1 weight-loss drugs because visible DTC pricing makes their negotiated net costs opaque.
- Direct-to-consumer programs can paradoxically reduce access for insured employees who previously paid less via coverage.
Late-Year Biotech Rebound
- Biotech staged a strong comeback in late 2025 after trailing the broader market earlier in the year.
- Clinical-stage biotech stocks delivered exceptional outperformance driven by M&A, good data, and easing macro risks.