Babylon to exit US, seeks lifeline to avoid bankruptcy

London-based digital-first healthcare platform Babylon is undergoing a business overhaul that includes closing U.S. operations.

The company plans to transition U.S. members to other providers, according to a news release, and to sell Meritage Medical Network, an independent physicians association business, among other strategic updates.

In May, the company reported $63.2 million net loss, and -20.3 percent net loss margin for the first quarter, compared to a $29.1 million net loss and -10.9 percent net loss margin for the same period last year. Babylon went public in the fall of 2021.

Babylon also announced the planned combination of the company's core operating subsidiaries with MindMaze, which was announced in June, has halted. The company is looking for alternative ways to boost its business in the United Kingdom and continue day-to-day operations as well as provide healthcare services to members. The company's U.K. private business grew 83 percent year over year in the first quarter.

"Babylon has built a successful, distinct and sustainable UK business which provides high quality healthcare to many. However, it cannot provide assurance that any of these initiatives will result in Babylon entering into a definitive agreement for or completing a divestiture," according to the company's news release.

Babylon reported discussions with potential strategic partners to secure funding and complete a third party sale. If unsuccessful, Babylon faces bankruptcy.

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