Editing Babylon Holdings Limited
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== Summary == | |||
Babylon Holdings Limited operates as a digital healthcare company. It offers end-to-end care solution that facilities through its digital health suite, virtual care, in-person medical care, and post-care offerings. The company also provides Babylon Cloud services. It operates in the United Kingdom, the United States, the Asia Pacific, Canada, and internationally. The company was founded in 2013 and is headquartered in London, the United Kingdom. | Babylon Holdings Limited operates as a digital healthcare company. It offers end-to-end care solution that facilities through its digital health suite, virtual care, in-person medical care, and post-care offerings. The company also provides Babylon Cloud services. It operates in the United Kingdom, the United States, the Asia Pacific, Canada, and internationally. The company was founded in 2013 and is headquartered in London, the United Kingdom. | ||
Since the COVID-19 pandemic, the NHS still hasn't fully recovered. With extended waiting times for patients, inefficient referral practices, issues with under-staffing in hospitals cause patients to have delays in reiving critical care. Babylon Health aims to tackle this issue through the use of AI technology to streamline these operations leading to a more efficient healthcare system. Through partnerships with privatised healthcare brands and NHS practices, Babylon Health is revolutionising the way we think about healthcare. | Since the COVID-19 pandemic, the NHS still hasn't fully recovered. With extended waiting times for patients, inefficient referral practices, issues with under-staffing in hospitals cause patients to have delays in reiving critical care. Babylon Health aims to tackle this issue through the use of AI technology to streamline these operations leading to a more efficient healthcare system. Through partnerships with privatised healthcare brands and NHS practices, Babylon Health is revolutionising the way we think about healthcare. | ||
Babylon Health delivers tailored ‘AI-powered, Physician-led Virtual Healthcare’ to patients in over 15(?) countries globally. Operating in 16 languages across their global network | Babylon Health delivers tailored ‘AI-powered, Physician-led Virtual Healthcare’ to patients in over 15(?) countries globally. Operating in 16 languages across their global network Babylon health helps a patient every 6 seconds. Reviews of the company are met largely with success with a 4 or 5 star rating from over 90% of users worldwide. However, Babylon’s stock price has drastically declined in value since their IPO in October 2021. | ||
''' | '''Mission Statement''' | ||
Babylon is a leading value-based care company with the aim to make high-quality healthcare accessible and affordable to everyone worldwide. Babylon wishes to re-engineer how people engage with healthcare. Aiming to switch the model from reactive to preventative healthcare | Babylon is a leading value-based care company with the aim to make high-quality healthcare accessible and affordable to everyone worldwide. Babylon wishes to re-engineer how people engage with healthcare. Aiming to switch the model from reactive to preventative healthcare | ||
Their company mission is as follows: Global healthcare market has been unable to balance accessibility, quality and affordability. Babylon’s goal is to make high quality healthcare accessible and affordable for everyone | Their company mission is as follows: Global healthcare market has been unable to balance accessibility, quality and affordability. Babylon’s goal is to make high quality healthcare accessible and affordable for everyone. | ||
== Product Offering and Services == | == Product Offering and Services == | ||
'''Business Model''' | '''Business Model''' | ||
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Babylon separates their operating streams into 3 main lines of service: | Babylon separates their operating streams into 3 main lines of service: | ||
- Value based care | |||
- Clinical Services | |||
- Software licensing | |||
Within their value based care stream, Babylon Health generates revenue from capitation(…) for delivery of services under VBC (….) contracts with US health plans and providers. Revenue from capitation for delivery of services under VBC contracts with US health plans and providers. In their clinical services stream Babylon health works with affiliated providers to deliver medical consultations, on a fee-for-service basis or ffs and capitation fees. This includes per-member-per-month subscription fees for virtual consultations. They also use Software Licensing as another revenue stream through selling a digital suite of products to partners who can provide care through their own medical networks. These three lines of service act as Babylon Health's main revenue streams. Services are funded through a subscription based model, pay-as-you-go, centrally funded initiatives like NHS or as part of health insurance packages. | Within their value based care stream, Babylon Health generates revenue from capitation(…) for delivery of services under VBC (….) contracts with US health plans and providers. Revenue from capitation for delivery of services under VBC contracts with US health plans and providers. In their clinical services stream Babylon health works with affiliated providers to deliver medical consultations, on a fee-for-service basis or ffs and capitation fees. This includes per-member-per-month subscription fees for virtual consultations. They also use Software Licensing as another revenue stream through selling a digital suite of products to partners who can provide care through their own medical networks. These three lines of service act as Babylon Health's main revenue streams. Services are funded through a subscription based model, pay-as-you-go, centrally funded initiatives like NHS or as part of health insurance packages. | ||
'''B2C Products''' | '''B2C Products''' | ||
Babylon Health allows patients to interact with healthcare professionals over text or video, sending images and receiving advice | Babylon Health allows patients to interact with healthcare professionals over text or video, sending images and receiving advice after their enquiring has been streamlined through the use of AI. The main services that Babylon health offers to patients includes: | ||
- Babylon Private | |||
- Babylon GP at Hand | |||
- Babylon for Bupa | |||
- Babylon360 and Babylon Cloud Services | |||
Babylon services treat patients in an affordable, time saving manner through the use of AI to speed up wait-times and costs within healthcare. Their unique team of doctors, specialists, scientists and engineers use AI technology to transform healthcare for the better. This technology helps patients and providers gain advances medical insights to make better, well-informed decisions. | Babylon services treat patients in an affordable, time saving manner through the use of AI to speed up wait-times and costs within healthcare. Their unique team of doctors, specialists, scientists and engineers use AI technology to transform healthcare for the better. This technology helps patients and providers gain advances medical insights to make better, well-informed decisions. | ||
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'''Partnerships''' | '''Partnerships''' | ||
Babylon health have established partnerships with the NHS (Babylon GP at Hand), Ambetter Health (an example of a US healthcare partnership providing 24/7 primary care), Rwanda (helping the government deliver healthcare to 20% of the population) | Babylon health have established partnerships with the NHS (Babylon GP at Hand), Ambetter Health (an example of a US healthcare partnership providing 24/7 primary care), Rwanda (helping the government deliver healthcare to 20% of the population) | ||
== Team == | |||
Add the pictures with team list | |||
== Valuations and Financials == | == Valuations and Financials == | ||
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== Stock Price Timeline and Explanation == | == Stock Price Timeline and Explanation == | ||
Having successfully completed series A, B and C funding, worth $25mn, $60mn and $550mn respectively, in the six years following its birth, Babylon was taken public in the final quarter of 2021. Babylon made the decision to divert from the traditional Investment Bank IPO route and instead chose to look in the direction of SPACs. | [Insert company timeline] | ||
Having successfully completed series A, B and C funding, worth $25mn, $60mn and $550mn respectively, in the six years following its birth, Babylon was taken public in the final quarter of 2021. Babylon made the decision to divert from the traditional Investment Bank IPO route and instead chose to look in the direction of SPACs. | |||
'''Public listing (October 2020)''' | '''Public listing (October 2020)''' | ||
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Ahead of its stock market debut, Babylon was valued at $4.2bn, set to receive $575mn from the merger with the SPAC, Alkuri Global. Typically in SPACs, shareholders have the option to redeem their shares prior to the business combination, for a pro-rata share of the funds in the investment trust. Since the SPAC target company often hasn’t been identified when the SPAC is formed, this procedure incentivises investors who may be worried about risks involved. On the date of the merger, 90% of shareholders chose to redeem their shares despite having all voted to approve the deal. As a result, Babylon was left with just $275mn in cash, $300mn less than originally calculated. To make up for this shortfall, Babylon had to cut staff, cancel two existing NHS contracts early and raise $80mn in additional cash – a disaster. | Ahead of its stock market debut, Babylon was valued at $4.2bn, set to receive $575mn from the merger with the SPAC, Alkuri Global. Typically in SPACs, shareholders have the option to redeem their shares prior to the business combination, for a pro-rata share of the funds in the investment trust. Since the SPAC target company often hasn’t been identified when the SPAC is formed, this procedure incentivises investors who may be worried about risks involved. On the date of the merger, 90% of shareholders chose to redeem their shares despite having all voted to approve the deal. As a result, Babylon was left with just $275mn in cash, $300mn less than originally calculated. To make up for this shortfall, Babylon had to cut staff, cancel two existing NHS contracts early and raise $80mn in additional cash – a disaster. | ||
Shortly after | Shortly after its IPO, the share price of Babylon Holdings LTS, under the ticker BBLN, peaked at $272.50 with a market cap of over $3.5billion. On the day of writing, it sits at $0.0331 with a market cap just under $850k. | ||
''' | '''Changing consumer demands [DATES]''' | ||
Babylon’s poor stock performance since its first listing in October 2021 can also be put down to the over inflated state of the telemedicine market at the time. During the pandemic, digitisation within the healthcare industry accelerated sharply, driven by the need to access patients who were forced into self-isolation. In a world where a return to pre-covid life seemed only imaginary, the telemedicine industry was in the forefront of investors’ minds, with Matt Hancock even describing Babylon’s services as “revolutionary”. | |||
However, as the world recovered from the pandemic, the rate of healthcare digitisation slowed as it became less of a pressing concern to many people. Having listed on the NYSE near the peak of this focus, investment into Babylon’s public equity only had room to fall as telemedicine expectations dropped to pre-covid levels. Additionally, the stock market started to peak in October 2021 before a long downward trend, driven by an extremely volatile geopolitical climate, along with monetary and fiscal contraction in response to soaring inflation. | |||
'''Reverse stock split (December 2022)''' | '''Reverse stock split (December 2022)''' | ||
In September 2022, Babylon received notice from the NYSE that it violated rules stating that listed companies must maintain an average closing price of at least $1 a day, over a 30 day consecutive closing period. In response, Babylon decided to issue a | In September 2022, Babylon received notice from the NYSE that it violated rules stating that listed companies must maintain an average closing price of at least $1 a day, over a 30 day consecutive closing period. In response, Babylon decided to issue a reverse stock split that became effective on 15<sup>th</sup> December 2022. By reducing the number of shares outstanding, it was hoped that this would increase the price per share and allow its continued listing on the NYSE. [add share price analysis] | ||
'''Delisting from stock exchange as part of restructuring (May 2023''') | |||
Add stock price response | |||
== Risk == | == Risk == | ||
== ESG == | == ESG == | ||