Hello HoH readers!

Welcome to another edition of Healthcare and Innovation at the Crossroads. This past week has been busy for me, as I attended Bits & Bretzels as a “table captain”, did my duty at the Wiesn (Oktoberfest for non-Bavarians) in Munich, visited clients in Boston, and spent the long weekend at the Baltic Sea to enjoy some late-summer/early-autumn sun by the water.

If you have any comments or feedback, please feel free to share them below. I hope you enjoy reading this newsletter.

Take care,

Andre

The Fall of Babylon Is a Warning for AI Unicorns, and Bankrupt Digital Health Company Babylon Sells U.K. Assets For Just $620,000

Babylon Health emerged as a beacon in digital healthcare, aspiring to make healthcare as ubiquitous as online information. As a medical doctor deeply invested in the convergence of healthcare and technology, I observed Babylon's journey with cautious optimism, given its potential to reform patient care and relieve healthcare systems globally.

However, Babylon's initial promise quickly devolved into a turbulent endeavor marred by overambition and premature scaling. Initial offerings showcased simplistic decision trees, starkly contrasting the proclaimed advanced AI. The ambition to revolutionize diagnoses through AI led to rapid, unregulated growth and many disjointed projects, often compromising precision and substance.

The repercussions were inevitable; unfulfilled promises and continuous losses marked Babylon's trajectory, culminating in financial instability and bankruptcy. A startling revelation was the sale of Babylon's foundational U.K. telemedicine service for a meager $620,000, a fragment of its once lofty valuation.

This illustrated a vital lesson: meaningful innovation in healthcare is not about disruption but about developing patient-centric, clinically validated solutions that prioritize patient safety and deliver genuine value.

I advocate for a balanced approach to digital healthcare innovation, integrating tech enthusiasm with medical wisdom. Babylon's story should serve as a reminder to approach the integration of technology and medicine with caution, responsibility, and an unwavering focus on patient well-being and value delivery. True innovation should enhance patient outcomes without compromising trust and safety.

Pharmaceuticals

• Canid, a startup specializing in vaccine automation and management, has completed a seed round of funding worth $1.5 million. SeedtoB Capital led the funding. → FinSMEs

• Emcure Pharmaceuticals, an Indian company, plans to raise between $400 million and $500 million through an IPO in 2024. → Reuters

• McKinsey, a consulting firm, has agreed to pay $320 million to settle more opioid-related lawsuits. → Bloomberg

• Alfasigma, an Italian pharmaceutical company, has announced its acquisition of Intercept Pharmaceuticals, a US-based drugmaker, for $794 million. → Reuters

Biotechnology

• Qihan Biotech, a biotech company focused on cell therapies and organ transplants, has raised $16 million in a pre-Series B funding round led by Zhejiang Industrial Fund. → Businesswire

• Biotech firm Abpro to merge with Atlantic Coastal Acquisition Corp. II in a $725 million deal. → Businesswire

• Jura Bio, a biotech startup developing immune-based therapeutics, has secured $16.1 million in funding. The round was led by Fontus Capital, John Ballantyne, and Michael Chambers. → FinSMEs

• Acesion Pharma has raised $47.5 million in a Series B round led by Canaan and Alpha Wave for its atrial fibrillation therapeutics. → PR Newswire

• Biopharma startup Avalyn Pharma has raised $175 million in a Series C round led by Perceptive Xontogeny Venture Funds, SR One, and Eventide Asset Management. → FinSMEs

• Autophagy-targeted small molecule developer Automera secured a $16 million Series A funding round led by ALSP and ClavystBio. → Businesswire

• Harbinger Health has raised $140 million from Flagship Pioneering, Partners Investment, and others. The startup is developing blood-based cancer screening products. → PR Newswire

• Deka Biosciences, a biotech firm specializing in immunotherapy, has raised $20 million in a Series B-2 round led by MPM BioImpact.→ PR Newswire

• Laverock Therapeutics, a gene silencing platform, has raised $16.5 million in seed funding. Calculus Capital led the round. → FinSMEs

• Geneos Therapeutics, a clinical-stage biotherapeutics company focused on personalized cancer vaccines, raised $5 million in Series A-3 funding from Shanghai Healthcare Capital. → PR Newswire

Medical Technology

• Enovis will acquire LimaCorporate, an Italian surgical implant manufacturer, for approximately $850 million, including debt. LimaCorporate offers orthopedic bracing and surgical implants. → Reuters

• Delta Development Team, a startup developing blood storage and transportation solutions, has secured $8.7M in Series A funding led by UAVC and Desert Angels. → VC News Daily

• Adela, a company based in Foster City, CA, specializing in blood testing for monitoring and detecting cancer, has raised $48 million in a funding round led by F-Prime Capital and OrbiMed. → FinSMEs

• QT Medical, a medtech company focused on cardiac care, has raised $12 million in a Series B round led by CDIB Capital and Taiwania Capital. → PR Newswire

• Schott Pharma, a German manufacturer of medical vials, is expected to set the price of its shares at $28.53 per share for its IPO in Frankfurt. This implies a valuation of $4.2 billion. → Reuters

• CellFE, a life sciences tools company that develops a microfluidics-based cell engineering platform, has raised $22 million in a Series A funding round led by M Ventures. → PR Newswire

• Lucid Scientific, a life science instruments company, has also raised $7 million in a Series A funding round led by IAG Capital Partners. → Businesswire

Digital Health

• Health plan administrator HealthComp and digital-wellness platform operator Virgin Pulse plan to merge in a $3 billion deal, creating an all-in-one health-tech platform. → WallStreetJournal

• Telehealth platform Cartwheel raises $20 million Series A for school mental health services, with Menlo Ventures leading the round. → PR Newswire

• Evozyne, an AI platform for drug discovery, raised $81 million Series B led by Fidelity. → FinSMEs

• Doceree, a messaging platform exclusively for physicians, has successfully raised $35 million in its Series B funding round. Creaegis led the funding. → PR Newswire

• Virtual clinic provider Midi Health raised $25 million Series A led by GV for women's midlife healthcare. → PR Newswire

• Vivante Health has raised $31 million in a Series B funding round led by Mercato Partners for its digital-first digestive health program. → mobi health news

• Inbound Health has raised $30 million in a Series B funding round led by HealthQuest Capital to assist providers in launching and managing at-home care programs. → mobi health news

• Diligent Robotics has raised $25 million in a funding round led by Canaan to expand the adoption of its administrative assistance robots. → mobi health news

• Take Command Health has secured $25 million in funding from Edison Partners for their insurance benefits and HRA management solution. → FinSMEs

• Virtual eating disorder treatment platform Equip has raised $20 million in a funding round led by General Catalyst. → Fierce Healthcare

• Briya raised $11.5 million in a Series A round led by Team8 and Amiti Ventures, with participation from existing investor Insight Partners, for its blockchain-based medical data interoperability solution. → Axios & mobi health news

• Patient acquisition and engagement solution Amenities Health secures $10M led by MemorialCare Innovation Fund and Epic Ventures. → HIT Consult

• AI-based clinical trial and research management platform Medeloop raises $8M in seed funding led by General Catalyst. → FinSMEs

• Mural Health secures $8 million in seed funding led by Bessemer Venture Partners for its platform that manages and engages clinical trial participants. → Axios & mobi health news

• NorthStar Care, a virtual substance use disorder treatment provider, has secured $6 million in seed funding. The funding round was co-led by Tony Robbins and Starting Line.→ FinSMEs

• Online pharmacy payment solution HealNow has secured $5.5 million in funding from Bonfire Ventures. → Axios

Healthcare Services

• BrightSpring Health Services, backed by KKR, withdrew its IPO in 2020 but has confidentially filed for a $1+ billion listing. → Bloomberg

• Rite Aid is in talks with creditors regarding its bankruptcy plan and has proposed closing 400-500 stores. → WallStreetJournal

• Icon Infrastructure is close to acquiring Alliance Medical Group, the UK diagnostics business of Life Healthcare Group Holdings, for almost $1 billion. → Bloomberg

• Ramsay Sime Darby Health Care, a private hospital group focused on Asia, is set to invite bids from a select group of five potential buyers. The shortlisted suitors include a consortium led by TPG and Macquarie Group. The sale, valued at over $1 billion, is expected to be completed by the end of the year. → WallStreetJournal

• Abu Dhabi's Mubadala is in talks to acquire up to $500 million stake in Manipal Hospitals from Singapore's Temasek. → Reuters

Consumer health and wellness

• Female-led startup Evvy raises $14M Series A funding round, led by Left Lane Capital, to focus on the microbiome. → Businesswire

• Pet supplement startup Mammaly raised $14.8 million in Series A funding led by Iris Ventures and Five Seasons Ventures. → FinSMEs

Financial Institutions

• Keensight Capital has raised $3 billion to invest in profitable tech and healthcare firms with high growth potential in Europe. → Bloomberg

• Singapore-based Quadria Capital aims to raise $1 billion for the most significant healthcare PE fund. → Reuters