Oxford based AI company Sensyne Health considers management buyout

Lord Paul Drayson, founder and CEO at Sensyne Health
Paul Drayson

Sensyne Health plc the Oxford Business Park-based ethical clinical AI company, could be about to undergo a management buyout after the company’s founder and Chief Executive Officer – and its largest shareholder, Lord Paul Drayson, approached the Sensyne Board requesting approval to speak to potential third party investors.

The Board has appointed J.P. Morgan Cazenove and Peel Hunt to consider a management buyout proposal, should one be forthcoming and explore other buyer interest alongside considering other strategic options that would allow Sensyne to scale more rapidly, with these including strategic investment or the continued pursuit of a secondary US listing.

The Board believes that the current market value of the Company does not reflect the fair value of the electronic patient record health data to which the Company has access through its strategic partnership agreements with UK NHS Trusts and US health systems. It feels that this undervaluation is preventing Sensyne pursuing opportunities that may create novel treatments for patients. The company currently has access to a data set of 22.5 million such records and has through its agreement with USA-based healthcare company OMNY Inc the potential to access a further 22 million US patient records, and access to approximately 42 million clinical trial records through its agreement with another USA firm, drug discovery company Phesi Inc.

Lord (Paul) Drayson PhD FREng, Founder and Chief Executive Officer of Sensyne, said: I have initiated this MBO process as a major shareholder with a focus on ensuring that Sensyne can realise its mission to become the leader in the ethical application of clinical AI to health data and maximise value for all stakeholders, including the NHS.  My goal, working with the world-leading Sensyne team, remains consistent: to improve patient care and accelerate medical research and achieve fair value more effectively.”

Since inception, and more recently since the IPO (in 2018), Sensyne has developed significant AI and data science expertise through its collaborations with NHS Trusts, academic institutions and pharma groups, and has established access to significant patient data on an anonymised basis through agreements with multiple UK NHS Trusts and US Healthcare systems. By applying AI and machine learning methods to what the company sees as one of the deepest, longitudinal patient datasets in healthcare, Sensyne generates new and otherwise unidentifiable insights of value to advance patient care and pharmaceutical research.

Through its Life Sciences and Healthcare Products divisions, Sensyne works towards connecting patients, clinicians and researchers. In 2021, Sensyne has launched SENSIGHT™, a desktop application which allows the process of interrogating large scale, longitudinal patient datasets to be done on an automated basis, allowing a step-change in utility and speed for pharmaceutical companies, medical researchers and health care practitioners.  In addition, Sensyne, along with its partner Excalibur Healthcare Services, has developed MagnifEye™, a deep learning algorithm capable of objectively reading COVID-19 lateral flow tests with extremely high accuracy. MagnifEye has received European regulatory certification.

Sir Bruce Keogh, Non-Executive Chairman of Sensyne, said: “Sensyne has initiated a formal sale process as we believe it will help the Company to deliver maximum value to all shareholders and prosper in the long-term. The Board is fully aligned with Lord Drayson’s proposal to explore a management buy-out as one route towards maximising value for all stakeholders while respecting our heritage and unique, ethical business model. We recognise Paul’s continued motivation and commitment towards the success of the business.

 “Additionally, as part of the Board’s duty to act on behalf of all shareholders, the Board will also consider other options that may include strategic equity investment or continued exploration of a secondary US listing.”