The company has stated that Babylon Health is trying to sell its UK operations, notably it’s hundred thousand patient NHS GP practice.
This week, the company stated that a $34.5 million attempt for a restructuring and revert to private ownership failed. This follows the May report that stocks in Babylon plummeted precipitously on rumors that the enterprise was being taken privately as part of an overhauled debt plan.
Babylon GP at Hand, a London-based GP office that only accepts NHS patients online, is the company’s main remaining NHS service.
According to the corporation, it is currently “exploring strategic alternatives in search of the best outcome for its UK business,” which may include the potential of selling the UK business. According to HSJ, senior Babylon staff members are assured that their company’s UK businesses, including the firms that manage the NHS, won’t close.
Following the company’s delisting off the New York Stock Exchange (NYSE) last month, London-based investment company AlbaCore Capital has declared that it would take control of its assets without the consent of its shareholders and that it has appointed UK administrators.
In a statement, Babylon stated that it “cannot offer guarantee that it is going to be capable to acquire adequate financing for funding the operations associated with the Group’s business”.
According to the company, “the relevant entities of the The group will file for protection under bankruptcy or implement alternate options for a tidy wind down, liquidation, or dissolution” if Babylon fails to obtain more financing and complete a third-party sale of a specific business.
The UK’s Babylon Health company was hailed by Matt Hancock, the last health secretary, as the NHS of the future. Ali Parsa, a former Iranian banker in the UK, founded the company in 2013, proclaiming that artificial intelligence (AI) might revolutionize healthcare through virtual visits and diagnostic chatbots like its GP at Hand.
Although Hancock’s advocacy of GP at Hand in 2018 helped Babylon secure an array of NHS contracts, experts consistently cautioned that the technology was untested and overhyped.
After losing almost all of its original $4.2 billion valuation, the company is now on the verge of bankruptcy.