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Digital health company Babylon has filed for bankruptcy protection for two of its U.S. subsidiaries. Babylon is seeking Chapter 7 relief, which means it plans to liquidate assets rather than attempt to restructure, according to the filings in U.S. Bankruptcy Court in Delaware. Both entities list hundreds of creditors, however Babylon has indicated that only secured creditors have a shot at getting paid back. The U.K.-based company, which went public in a 2021 SPAC deal, has been struggling for months to secure financing for its business. The liquidation of Babylon’s U.S. operations comes after a previously announced “business combination” with Switzerland-based digital therapeutics company MindMaze — brokered by Babylon creditor AlbaCore Capital — fell through. Babylon CEO Ali Parsa
Katie also reported last week that Babylon is “winding down” its operations in Rwanda, where it was serving 2.8 million patients. Babyl Rwanda had also received more than $2.2 million in funding from the Bill & Melinda Gates Foundation to use technology “to improve global health.” Babylon CEO Ali Parsa and the Babylon press team have not responded to multiple requests for comment for the last week.
Next Billion Dollar Startups 2023
For the ninth year in a row, Forbes has teamed with TrueBridge Capital Partners to search for the 25 startups right now that are most likely to hit a valuation of over $1 billion dollars. This year’s list features several companies in the healthcare industry: Apprentice, which develops software to support pharmaceutical manufacturing; Chapter, which helps seniors find the best Medicare Advantage plans for their needs; Medallion, whose software platform helps automate administrative tasks for physician practices; probiotic manufacturer Pendulum Therapeutics; and Verifiable, whose software platform automates the process of verifying medical professional credentials.
Read more here.
Pipeline & Deal Updates
Mental Health: Digital mental healthcare company Mantra Health announced that it has partnered with Charlie Health to incorporate the latter’s intensive outpatient program to its suite of services.
Remote Monitoring: GE Healthcare announced that its Portrait Mobile product, which wirelessly captures patient respiration rate, has received 510(k) clearance from the FDA.
Healthcare Data: Healthcare data firm Definitive Healthcare announced that it’s acquiring analytics firm Populi.
Arthritis: MyMD Pharmaceuticals announced that the FDA has accepted its IND application for its rheumatoid arthritis drug candidate MYMD-1, based on preclinical data showing improvements in symptoms compared to current treatments.
Algorithm Approval: Viz.ai announced that the FDA has approved the use of its algorithm designed to detect hypertrophic cardiomyopathy, a heart condition that often goes undiagnosed.
What We Know About ‘Eris’ Covid Variant EG.5: The Dominant Strain Driving An Uptick In Cases
A new Covid variant called EG.5 is the most prevalent strain in the U.S., and although it’s causing an increase in cases and hospitalizations, experts don’t believe its symptoms are more severe than previous omicron variants.
Read more here.
Other Healthcare News
Novo Nordisk, the makers of Ozempic and Eli Lilly, makers of Mounjaro, are being sued for the drugs possibly being linked to gastroparesis, a severe stomach disorder, though some experts question the claim. .
The wildfires in Maui are releasing chemicals into the air and water that can lead to certain cancers, birth defects, brain damage and kidney and liver damage.
As major retailers like Amazon, Walmart, Walgreens and CVS continue to acquire primary care providers, one side effect is that nurse practitioners and primary care physicians are seeing raises in their salaries.
Kim Kardashian has been promoting Prenuvo’s $2,500 MRI full-body scan, but healthcare professionals advise against it.
More than 50,000 Americans took their lives in 2022, causing the the suicide rates to reach an all time high, according to data released by the CDC.
A new study out of Sweden suggests that AI can help detect breast cancer.
Novo Nordisk, maker of the obesity drug Wegovy, will continue to restrict the drug’s supply as demand increases.
Across Forbes
Startups Think They Can Beat Wildfires, But Insurance Companies Aren’t Buying It Yet
How Three Car Guys And A Winemaker Want To Save America’s Farms With Tractorbots
Sam Altman’s Eyeball-Scanning Crypto Project Worldcoin Is Having An Identity Crisis
What Else We are Reading
Funyuns and Flu Shots? Gas Station Company Ventures Into Urgent Care (KFF Health News)
The CDC faces $1.5 billion in budget cuts. Layoffs will almost certainly follow (Stat)
Drug Shortages Not Only Exacerbate Healthcare Burnout But Can Also Harm Patient Care (MedCity News)