Two NHS hospitals in the UK have collectively lost nearly £15million ($18million) as an AI startup fell in value.
Last month, The registry reported that seven NHS Hospital Trusts appeared to have lost millions after deals with Sensyne Health — a fledgling AI company trying to discover and develop new medicines — in which company shares were swapped for patient data.
The company has since been delisted from AIM, part of the London Stock Exchange, while some projects continue.
In recent financial reports, the University of Oxford and Oxford University Hospital said they had lost £9.2 million ($11.12 million) of the value of the shares they received, while the Chelsea and Westminster Hospital NHS Foundation Trust lost the The value of the shares they held had fallen by £5.4m (c$6.52m).
In 2017, the University of Oxford and Oxford University Hospital were discontinued receive a total of £5 million ($6 million) to Sensyne — then called Drayson Technologies — as part of its Series C funding round Annual Report 2020-2021 [PDF]Oxford University Hospital valued the equity it held at £7.3 million ($8.7 million).
But it is published annual report 2021-2022 [PDF] reveals that its investments in associates and joint ventures suffered a loss of £9.16m due to the “revaluation of a stake in Sensyne Health PLC following a fall in the share price during the year”.
The hospital has been asked for comment.
in August 2018, Chelsea and Westminster Hospital NHS Foundation Trust said they would receive a £5million ($6million) stake in Sensyne. Last month it was not responding The registry Questions about the current value of his share.
However, in his last financial report [PDF]the trust said the shares were valued at £5.77m ($6.95m) in March 2021.
“As of 31 March 2022, the Trust has accepted the shares for AIM-listed valuation,” the report reads, putting the figure at £387,000.
The Trust has been contacted for further comments.
Sensynes shares were delisted from AIM in Mayafter agreeing a financing deal that included the introduction of a new management team.
Other trusts are affected by the company’s decline in value. in the September last yearGreat Ormond Street Hospital for Children said it would receive 1,428,571 Sensyne Health shares if the price were around 140p, making the stake worth around £2million ($2.4million). .
In his Financial Report 2021-2022 [PDF]the Trust recognized the shares at the AIM-listed valuation.
In a statement to The registry Last month the trust said: “As Sensyne is delisted from AIM, GOSH cannot assign a value to the shares held. Funding from Sensyne enables the development of the hospital’s data infrastructure to achieve our goal of advancing pediatric healthcare and research outcomes.”
In a statement shared with The registrySomerset NHS Foundation Trust said its deal announced in 2020 issued a total of 1,428,571 shares at a par value of 175p a share, or about £2.5m ($3m).
“Although the Trust still holds shares in the company, these are no longer traded on the stock exchange and as a result there is no readily available valuation of the shares,” the statement said.
However, the trust said it has not yet shared any data as part of the agreement. Milton Keynes University Hospital and the Royal Wolverhampton NHS Foundation Trust also had contracts with Sensyne, worth £1.3m and £1.7m respectively, when they struck the deals. They have yet to publish their annual accounts.
Cambridge University Hospital had agreed to receive 4,285,714 common shares of Sensyne Health for its part of the research project announced in December 2021. In a statement to The registry, it said it shared no data with Sensyne and held no shares. ®
https://www.theregister.com/2022/08/17/nhs_hospitals_ai_losses/ NHS hospitals lose millions in AI startup investments • The Register