Introducing Babylon Health

For those who of you who hold/have held Teladoc and anyone who noticed me taking a position in the Alkuri SPAC in my monthly write ups, last week was the milestone that affords us an opportunity to invest in a telehealth play that offers growth rates that we look for on this board.

Teladoc has declined to ~30% organic growth levels according to its latest set of results……

Meanwhile Babylon’s consummation with its SPAC and its resultant NYSE listing took place last Friday.

On Monday I took the opportunity as advertised and planned to switch across my Teladoc stake into Babylon the UK telehealth company that replaces the SPAC vehicle Alkari.

I haven’t had time to prepare a run down on the investment thesis but you can find an outline of their latest performance here……

Highlights being:
H1 2021 Revenue grew 472% year-over-year
Global growth to become one of the largest Value-Based Care businesses with over 200,000 Members¹
U.S. grew from its January 2020 launch to over 3 million covered lives including over 80,000 VBC lives
Alkuri Global Acquisition Corp. and Babylon expect to close the transaction mid-October 2021
Babylon reaffirms 2021 and 2022 growth guidance

Effectively their top line growth, bottom line improvement and global footprint makes them an investment opportunity on scale that has potential beyond simply Teladoc’s US operations. It has an appetite for disruption greater than Teladoc which seems more intent on supplementing the broken state of US healthcare and it is also converging on Asia with powerful health insurance partners.

At some point Cedric or I will have the opportunity to write this up properly but in the meantime, here’s an overview of the investment plus comparisons on key metrics against other Telehealth companies.…

I will report back on this when I get more time.


From your second link: GM is 23% with a mid term target of 30%.

Slide 41 has an interesting table showing TDOC, AmWell, and others in comparison. A smaller company with lower margins and an example of a race to the bottom in a commodity (virtual appointments, triage and support)?

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