(Health Korea News / Lee Si-woo) Medical artificial intelligence (AI) company Lunit (CEO Seo Beom-seok) announced on the 13th that it recorded sales of 34.14 billion won based on cumulative consolidated financial statements in the third quarter of 2024. This is a 73.4% increase compared to the same period last year (KRW 19.683 billion).
Sales in the third quarter of 2024 were 16.77 billion won, an increase of 413.4% compared to the same period last year (3.267 billion won). Among these, overseas sales amounted to KRW 15.268 billion, accounting for 91% of total sales, continuing growth in the global market.
On the other hand, operating profit is an area that needs to be improved in the future.
Cumulative operating loss in the third quarter of 2024 was 49.18 billion won, an increase of 101.1% compared to the same period last year (24.461 billion won). Operating loss in the third quarter also increased by about 36.7% from 12 billion won last year to 16.434 billion won this year. However, operating loss improved by 17.6% compared to the previous quarter as one-time costs related to the acquisition of Volpara were resolved and integration efficiency progressed.
▲ Confirmation of stable profit structure of subsidiary ‘Bolpara’… Actively carrying out global integrated marketing starting in the 4th quarter
Lunit’s synergy effect began in earnest as the performance of its subsidiary ‘Volpara Health’, which was acquired last May, was reflected for the entire period for the first time. In particular, subscription-based SaaS (Software as a Service) sales accounted for 97% of the total, which is said to have established a stable and predictable profit base.
Volpara’s sales network in the North American market and Lunit’s AI products are being smoothly integrated, and from the fourth quarter, the company is expected to actively engage in integrated marketing and product cross-selling, further gaining momentum in targeting the North American market.
▲ Domestic market growing due to expansion of Lunit Insight non-coverage treatment
Notable achievements continued in Korea as well. Cumulative domestic sales in the third quarter amounted to 4.305 billion won, an increase of 62.6% compared to the same period last year. This is mainly the result of the chest
Lunit expects that the effect of expanding non-reimbursed treatment for ‘Lunit Insight MMG’, a mammography AI image analysis solution, will be reflected starting from the fourth quarter of this year. Lunit Insight MMG was designated as a ‘new medical technology evaluation deferred’ product through a Ministry of Health and Welfare notice last August, and like Lunit Insight CXR, non-reimbursement claims can be made at medical sites.
▲ 87.4% of overseas sales… “Expanding global market dominance”
Cumulative overseas sales in the third quarter of 2024 amounted to 29.835 billion won, accounting for 87.4% of the total. This is a 75.1% increase compared to the same period last year, and continues to show that Lunit’s core products are highly competitive in the global market.
In particular, Lunit’s representative product, ‘Lunit Insight’, is leading the commercialization of global medical AI solutions and is currently being used in more than 4,500 medical institutions in 55 countries around the world. As the effectiveness of improving diagnostic efficiency and reducing the workload of medical staff has been proven one after another, inquiries are increasing not only from medical institutions around the world but also from health authorities in each country that are considering introducing it into national cancer screening programs.
▲ Lunit scope sales increase significantly… “Leading the AI biomarker platform market”
The AI biomarker platform ‘Lunit Scope’ is also showing remarkable growth. Excluding temporary milestone profits (approximately KRW 4.7 billion) received from US bio-healthcare company ‘Guardant Health’ in 2023, cumulative sales in the third quarter of 2024 grew 215% compared to the same period last year, confirming competitiveness. I’m doing it.
This is mainly due to the increase in research and analysis requests from global pharmaceutical companies, and Lunit is currently discussing cooperation plans such as launching research products with a number of global pharmaceutical companies, including Global Big Pharma. Significant contract results are expected to be revealed within the first quarter of this year and next year. The company plans to further strengthen its position in the global AI biomarker platform market by expanding this cooperative relationship.
Seo Beom-seok, CEO of Lunit, told Health Korea News on the 13th, “Not only have we secured a stable profit structure through the successful integration with Volpara, but we are also showing clear growth in all business sectors, including expanded global introduction of Lunit Insight and increased sales of Lunit Scope.” He said, “The synergy with Volpara will be further strengthened in the fourth quarter of this year and next year, and cooperation with global leading pharmaceutical companies in the AI biomarker field is also planned, so we will be able to achieve strong growth momentum.”
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