Specialist
Former Director at Babylon Healthcare Services Ltd
Agenda
- Babylon Health's market positioning vs competitors, including key differentiators
- Babylon 360 service model expectations
- Possible M&A activity in the US and Middle Eastern markets
- US market expansion outlook
Questions
1.
How has Babylon performed in H1 2021? What have been the key drivers and how has performance been impacted by increased vaccination roll-out in each of the company’s key geographies?
2.
Could you quantify Babylon’s growth in the UK and US markets over 2020?
3.
How much growth was driven by coronavirus and how much came from other efforts, such as the commercial agreement in the UK you mentioned?
4.
How sticky do you think the patient base generated during coronavirus is? Could there be a drop-off of patients as we emerge from the pandemic?
5.
Could you outline Babylon’s key offerings and end products in the US and UK markets?
6.
Which of value-based care, GP at Hand and tech licensing do you think is the biggest revenue driver? Which do you expect to be the largest growth bucket for Babylon?
7.
When do you think Babylon 360 could be launched in the UK? Who could the company partner with to launch this service?
8.
How can Babylon 360 help the healthcare system around saving time within the clinics and diverting patients to other streams?
9.
Babylon claims it is trying to convert customers to value-based care, which has less than 1% penetration. How is Babylon able to convert customers to value-based care? How might that 1% penetration trend longer term?
10.
Could you elaborate on the software that Babylon is licensing and the customers it is selling to?
11.
How do the revenue structures differ between the different buckets that we’ve discussed?
12.
Babylon has had really impressive results with five x revenue growth in 2020, serving 24 million lives across global countries and demonstrating up to 35% cost savings. How sustainable do you think these results will be and how might revenue trend?
13.
You mentioned Babylon has expanded massively in the US since January 2020. How has it been able to grow so rapidly in the US and what have been the key growth drivers?
14.
Were there any issues in the initial launch of the value-based care system or any issues over 2020 as there has been uptake in the US?
15.
Who has Babylon managed to successfully partner with in the US since the launch of value-based care?
16.
How does pricing work in the US? Are consumers paying through the app or through the payers?
17.
What are your US growth expectations? What could be the key threat to Babylon’s US growth over the short-to-medium-term?
18.
How does Teladoc compare to Babylon and how are the two companies differentiated? Teladoc acquired Livongo in October 2020 and has expanded significantly in the US throughout the pandemic.
19.
There is growing saturation of the US market with alternate providers and scale of competitors such as Teladoc. How is Babylon beginning to drive scale and take meaningful share of commercial spend, particularly around its value-based care product?
20.
Do you know anyone in the US who is developing a value-based care product similar to Babylon’s?
21.
There’s been a lot of M&A activity from Babylon in the US recently, including investment in Fresno, a California-based FirstChoice Medical Group in March 2021 and the acquisition of Meritage Medical Network back in May 2021. What do these acquisitions provide Babylon with? What’s your outlook for further acquisitions from the company, given you suggested you think there will be more?
22.
How do you think Babylon can meaningfully expand its patient population across the US aside from through M&A?
23.
How do Babylon’s many global long-term licensing contracts work around timescale or any relevant customer switching costs?
24.
How does the payer selection process work? What’s behind their key decision criteria before signing up with a company such as Babylon?
25.
Do you think that the AI chatbot represents the future of healthcare? Do you expect any risks to this kind of technology?
26.
How long do you think it could be until AI can act as an assistant for helping the diagnosis process?
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