SEPSIS Act

The SEPSIS Act (S.1929), introduced on June 3, 2025, and referred to the Committee on Health, Education, Labor, and Pensions, aims to establish programs to reduce rates of sepsis. This bill is in its early legislative stages, having been read twice and referred to committee. A companion bill, HR7116, has been introduced in the House, increasing the probability of eventual passage. The bill itself does not appropriate funds but authorizes the creation of new programs within the Centers for Disease Control and Prevention (CDC) to lead education campaigns, improve data collection, and support research related to sepsis. These authorized programs would require subsequent appropriations bills to allocate actual funding. The bill explicitly states findings that highlight the need for increased federal investment in sepsis research and support for the infectious disease workforce. This creates a clear path for future federal spending in these areas. Structural beneficiaries of this legislation, should it pass and be funded, include companies involved in medical diagnostics, device manufacturing, and clinical research. Specifically, companies like Becton, Dickinson and Company ($BDX), Thermo Fisher Scientific Inc. ($TMO), Labcorp Holdings Inc. ($LH), Quest Diagnostics Incorporated ($DGX), Abbott Laboratories ($ABT), and GE HealthCare Technologies Inc. ($GEHC) are well-positioned. These companies provide diagnostic tools, medical devices, and laboratory services that would be essential for new federal programs focused on sepsis detection, treatment, and research. Recent market data shows mixed performance for these companies. Over the last 7 days, $BDX is up +0.41%, $TMO is up +1.7%, $LH is up +4.12%, $DGX is up +0.91%, $ABT is up +0.41%, and $GEHC is up +2.37%. However, over the last 30 days, most have seen declines: $BDX is down -8.6%, $TMO is down -5.91%, $LH is down -0.53%, $DGX is down -2.46%, $ABT is down -7.87%, and $GEHC is down -8.7%. This indicates that the market has not yet priced in the potential impact of this early-stage legislation, and recent movements are likely driven by broader market or company-specific factors unrelated to the SEPSIS Act. The next legislative steps involve committee consideration and potential mark-up, followed by a vote in the Senate, and then the House.