PALO ALTO, Calif. and LONDON, Oct. 21,
2021 /PRNewswire/ -- Babylon Holdings Limited
("Babylon"), one of the
world's fastest-growing digital healthcare companies, today
announced that it has completed its business combination with
Alkuri Global Acquisition Corp. (NASDAQ: KURI, KURIU and KURIW)
("Alkuri"), a special purpose acquisition company. The transaction
was approved on October 20, 2021 by
Alkuri's shareholders. Babylon's
Class A ordinary shares and its warrants will begin trading on the
New York Stock Exchange ("NYSE") on October
22, 2021 under the new ticker symbols "BBLN" and "BBLN.W",
respectively.
"We founded Babylon on a
fundamental belief, that it is possible to make quality healthcare
accessible and affordable for every person on Earth. As we start
the next part of our journey as a public company, we believe we are
only just getting started as we look to re-engineer every touch
point in the healthcare continuum.", said Ali Parsa, CEO and founder of Babylon. "Since our inception, we have driven
significant returns for our shareholders, and we believe if we
continue to deliver on our mission as we have so far, we will
continue to create extraordinary value for our shareholders, but
more importantly, we plan to do so by creating an even more
extraordinary value proposition for our patients and partners."
As Babylon prepared to move
into the public markets, Ali
Parsa, in a detailed letter to shareholders, further laid
out Babylon's strategic vision and
the substantial momentum it has seen, as it looks to overhaul the
global healthcare sector.
The company is going public in the wake of seeing rapid progress
across all of its business segments, making it one of the fastest
growing digital health companies going public this year. Below are
some key highlights:
- Babylon is
demonstrating real growth and momentum:
- Year over year H1 2021 revenue growth was 472%, on the
wake of 394% growth from 2020 to 2021.
- Babylon is contracted to serve
over 24 million people in 16 countries, with over
15 languages. In 2020, we helped one patient every 5
seconds, with approximately 6 million interactions.
- In H2 of 2021 so far, the company has contracted to more than
double its covered value based lives, by adding c.135k lives
as at the contract date, through its expansion to additional US
states, Georgia and Mississippi, and growth across California.
- Through a combination of its value-based care model,
Babylon 360 and its work in
primary care, Babylon will be
managing c. 350k capitated
budget lives globally, including 105k NHS GP at Hand lives, by the start of
2022.
- Increased our estimated contracted revenue to over
$60m per month from
launch.
- Babylon puts
patient service and high quality of care front and
centre:
- Over 90% of Babylon's
members report being very satisfied with our service across all of
our geographies, irrespective of their socio-economic background or
demographics and we have more than 95% user retention
rate.
- Ratings of our clinical quality outcomes have been equally high
in every one of our markets. For example: in the UK we have been
rated as "Outstanding" in the 'well-led' domain by the Care Quality
Commission, where we also scored 96% in the NHS Quality
Outcome Framework[1].
- A peer reviewed paper, based on independent NHS data, showed we
delivered up to 35% of acute care cost savings for our
members compared to other similar cohorts, and in the US, our data
shows we avoided around 34% of ER/Urgent care visits for our
cohort.[2]
- Our unit costs of care are falling in every one of our markets
too. For example: in Rwanda there
has been a 55%[3] reduction in
the unit cost of our consultation, while in the UK, our unit cost
of delivery of primary care per person dropped by 33% in 2
years[4].
- Babylon is driving
real change through the combination of technology and clinical
quality
- Created a world class data infrastructure to deliver a holistic
single view of each individual's health graph and platformized our
artificial intelligence capabilities to enable them to be quickly
embedded across our products.
- We have already integrated over 100 data sources
resulting in access to 80 billion data points fueling our AI
efforts.
- Our total technology costs only increased by 22% while
our revenue increased by 472% for the six month period that
ended June 30, 2021.
- Our total technology costs declined as a percentage of revenue
from 200% for the six month period ended June 30, 2020 to 43% for the six month
period that ended June 30, 2021, and
is expected to further decline to below 15% of revenue for
the year ended December 31,
2022.
- 48% of all our member interactions are done through
our technology platform with no human involvement.
- In our longest standing market in the UK, 84% of all our
primary consultations are now entirely virtual.
- In peer-reviewed research published in Frontiers in Artificial
Intelligence, our technology, under selective test conditions
achieved 80.0% average recall and 44.4% average
precision, compared to doctors who took the same test and achieved,
on average, 83.9% and 43.6%, respectively.
"Babylon is one of the most
exciting stories in healthcare and technology, and we're pleased to
help them on what we believe will be a truly difference-making path
as a public company," said Alkuri CEO Rich
Williams. "Babylon is not
only well positioned to transform the $10
trillion global healthcare sector, they have the vision and
potential to be the winner in it. They already have incredible
momentum, but Ali and team have just scratched the surface of
what's possible when the patient is at the forefront of care."
Transaction Summary
As a result of the business combination, and the
Sustainability-Linked Notes transaction with AlbaCore, Babylon received proceeds of approximately
$460 million, prior to transaction
expenses, which includes cash proceeds from Alkuri's trust account
and the private placement (PIPE) investors.
Babylon will continue to be led
by Parsa as CEO alongside its highly experienced executive team,
including Charlie Steel as Chief
Financial Officer, Stacy Saal as
Chief Operations Officer, Paul-Henri
Ferrand as Chief Business Officer, Dr. Darshak Sanghavi as Chief Medical Officer,
Steve Davis as Chief Technology
Officer and Yon Nuta as Chief
Product Officer. In addition, the Company's Board of Directors
comprises a deep bench of global advisors with extensive
backgrounds and collective, deep-rooted expertise in technology,
and leading some of the world's fastest-growing businesses.
Advisors
Ardea Partners LP served as financial advisor, Citi served as
financial and capital markets advisor, and Wilson Sonsini Goodrich & Rosati, P.C.,
Allen & Overy LLP and Walkers (Jersey) LLP served as legal
counsel to Babylon. Jefferies
served as exclusive financial advisor and Winston & Strawn LLP
served as legal counsel to Alkuri. Jefferies, Citi and Pareto
Securities AB served as placement agents on the PIPE. Ardea
Partners LP and Citi acted as placement agents on the
Sustainability-Linked Notes transaction with AlbaCore, and Allen
& Overy LLP served as legal counsel to Babylon.
About Babylon
Babylon is a world leading,
digital-first, value-based care company whose mission is to make
high-quality healthcare accessible and affordable for everyone on
Earth.
Babylon is re-engineering
healthcare, shifting the focus from sick care to preventative
healthcare so that patients experience better health, and reduced
costs. This is achieved by leveraging a highly scalable,
digital-first platform combined with high quality, virtual clinical
operations to provide integrated, personalized healthcare. We
endeavor to support patients' health needs, all from their devices,
with the aim to promote longer and healthier lives. When sick,
Babylon provides assistance to
navigate the health system, connecting patients digitally to the
right clinician 24/7, at no additional cost.
Founded in 2013, we have since delivered millions of clinical
consultations and AI interactions, with c.2m clinical consultations
and c.3.9m AI interactions in 2020
alone. We work with governments, health providers and insurers
across the globe, and support healthcare facilities from small
local practices to large hospitals. For more information, please
visit www.babylonhealth.com/us.
Forward-Looking Statements
This communication contains a number of "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements generally relate to future
events or our future financial or operating performance. When used
in this communication, the words "estimates," "projected,"
"expects," "anticipates," "forecasts," "plans," "intends,"
"believes," "seeks," "may," "will," "should," "future," "propose"
and variations of these words or similar expressions (or the
negative versions of such words or expressions) are intended to
identify forward-looking statements. These forward-looking
statements include, without limitation, information concerning
Babylon's possible or assumed
future results of operations, business strategies, debt levels,
competitive position, industry environment, potential growth
opportunities and expectations with respect to expected trading of
Babylon on the New York Stock
Exchange (the "NYSE") and the potential timing thereof.
These forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside Babylon's management's control, that could
cause actual results to differ materially from the results
discussed in the forward-looking statements. These risks,
uncertainties, assumptions and other important factors include, but
are not limited to: (a) the risks of delays in admitting
Babylon to trading on the
NYSE; (b) the ability to meet the NYSE's listing standards;
(c) costs related to listing on the NYSE; (d) the possibility that
Babylon may be adversely affected by other economic, business
and/or competitive factors; and (e) other risks and uncertainties
identified in Babylon's registration statement on Form F-4 (File
No. 333-257694) filed with the U.S. Securities and Exchange
Commission (the "SEC"), which was declared effective on September
30, 2021, with respect to Babylon's securities to be issued in
connection with the Alkuri business combination, and in other
documents filed or to be filed with the SEC by Babylon and
available at the SEC's website at www.sec.gov.
Babylon cautions that the
foregoing list of factors is not exclusive, and caution readers not
to place undue reliance upon any forward-looking statements, which
speak only as of the date made. Except as required by law,
Babylon does not undertake any
obligation to update or revise its forward-looking statements to
reflect events or circumstances after the date of this release.
[1] Quality and Outcomes Framework,
2019-20. Scores across segments totalled 536.6 points out of 559
points, or 96%
[2] Based on Babylon survey of patients who had a
consultation as part of a specific health plan that has Alternative
Health Choice (AHC) surveys as part of consultation booking flow.
Data from January 2020 - February 2021.
[3] Between 2019 and 2021
[4] Data from 2019 to 2021
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SOURCE Babylon