British hospitals lost $18 million due to an AI startup

Britain's NHS funds lost about £15 million as AI startup stock collapsed.

Two NHS hospital funds in Britain lost almost £15 million ($18 million) as the value of an artificial intelligence startup collapsed. The story is reported by The Register.

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Since 2017, a number of NHS trusts and hospitals struck deals with Sensyne Health, which uses AI to develop drugs. Under the arrangements, institutions exchanged patient data for shares.

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Since then, the company has been removed from AIM, the London Stock Exchange’s Alternative Investment Market.

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In recently published financial reports, the Oxford University Hospitals NHS Foundation Trust said that it had lost £9.2 million ($11.06 million) in the value of the shares it received. The Chelsea and Westminster NHS Foundation Trust said that the value of its securities had fallen by £5.4 million ($6.49 million).

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In 2017, Oxford University Hospitals NHS Foundation Trust received £5 million ($6 million) of Sensyne stock, which was then called Drayson Technologies. In its 2020–2021 report, the trust valued the equity it held at £7.3 million ($8.78 million).

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However, the trust’s annual report for 2021–2022 shows its investments in associates and joint ventures fell by £9.16 million ($11 million). The reason given was \”revaluation of the Sensyne Health PLC shareholding due to a fall in the stock price over the year\”.

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In 2018, the NHS Foundation Trust received £5 million ($6 million) in a similar arrangement. In 2021, the stock’s value was valued at £5.77 million ($6.94 million). But in March 2022, their value stood at £387,000 ($465,000).

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Sensyne delisted from AIM in May 2022 after a financing deal that brought in a new management team.

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According to The Register, at least seven NHS trusts were hurt by the company’s falling value.

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As reported in September 2021, a collective action was brought against DeepMind over the use of patient data in the United Kingdom.

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